Analysis

3 Takeaways From The High Court's Patent Exhaustion Ruling

By Ryan Davis (May 30, 2017, 10:10 PM EDT) -- The U.S. Supreme Court on Tuesday discarded rules that had allowed patents to be enforced even after an item is sold, dealing a blow to patent owners and likely forcing many companies to re-evaluate their license agreements and pricing policies.

The justices ruled that selling a patented item exhausts all rights in the patent, regardless of where the sale takes place or any restrictions the patentee purports to impose. (AP) The high court held that the Federal Circuit misinterpreted the doctrine of patent exhaustion, a defense to infringement that holds that patent owners lose their rights after an authorized sale, when...

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