Quanta, LG Case Will Have Huge Impact On Licensing

Law360, New York (November 14, 2007, 12:00 AM EST) -- What do Supreme Court cases from the 19th to mid-20th centuries dealing with patents on coffin lids, felting machines, vacuum tube amplifiers, and bifocal eyeglass lenses, the last of which was decided in 1942, have to do with contemporary patent licenses and lawsuits for infringement?

The answer is that these cases establish a doctrine called patent exhaustion, which limits the ability of a patent holder to control a patented article once it has been sold, whether through use restrictions or royalty payments.

The Supreme Court will...
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