Quanta V. LG Electronics: Patent Licensees Go 2-0

Law360, New York (June 11, 2008, 12:00 AM EDT) -- In a unanimous decision, the U.S. Supreme Court dealt another body blow to patent holders who wish to maximize the number of potential licensing targets while minimizing the rights they give their licensees.

In this decision, the Supreme Court reaffirmed the viability of the doctrine of patent exhaustion and rejected LG’s attempt to preserve its right to sue downstream purchasers of licensed products by placing restrictive conditions on the original licenses.

In doing so, the court continued the trend established in Medimmune v. Genentech of equalizing...
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