System Integrators Should Consider Quanta Decision

Law360, New York (June 25, 2008, 12:00 AM EDT) -- The Supreme Court had granted certiorari in Quanta v. LGE to review the Federal Circuit’s holding that “expressly conditional” sales negated operation of the patent exhaustion doctrine. The court heard oral argument on Jan. 16 and issued its long-awaited decision on June 9.

The facts were straightforward. LGE owned patents relating to microprocessors and licensed Intel to sell these products to its customers.

However, the license to Intel purported to expressly disclaim any license to Intel customers who combined the licensed products with non-Intel products and...
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