A little more than a year ago, the U.S. Supreme Court, in Quanta Computer, Inc. v. LG Electronics, Inc., clarified important questions regarding the application of the patent exhaustion doctrine to system and method patents. In Quanta, the Court also rejected the notion that patent exhaustion can be avoided by mere restrictive notices to downstream customers where the sale was otherwise authorized by the patent owner. However, other much debated issues surrounding the law of patent exhaustion were not expressly addressed by the Court, most notably:
*whether a “covenant not to sue,” as opposed to a license, amounts to an authorization to sell for purposes of patent exhaustion;
*whether the “conditional sale” doctrine established by the Federal Circuit in its highly controversial Mallinckrodt decision is still viable; and
*the questions raised by the Federal Circuit?s Jazz Photo decisions regarding the application of the patent exhaustion doctrine to sales occurring outside the U.S.
Please see full update for more information.
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.