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The first-sale doctrine (also sometimes referred to as the "right of first sale" or the "first sale rule") is a legal concept that limits the rights of an intellectual property owner to control resale of products embodying its intellectual property. The doctrine enables the distribution chain of copyrighted products, library lending, giving ...
The exhaustion doctrine, also referred to as the first sale doctrine, [1] is a U.S. common law patent doctrine that limits the extent to which patent holders can control an individual article of a patented product after a so-called authorized sale. Under the doctrine, once an authorized sale of a patented article occurs, the patent holder's ...
After a product covered by an IP right, such as by a patent right, has been sold by the IP right owner or by others with the consent of the owner, the IP right is said to be exhausted. It can no longer be exercised by the owner. [1] This limitation is also referred to as the exhaustion doctrine or first sale doctrine. [1]
Adams v. Burke, 84 U.S. (17 Wall.) 453 (1873), was a United States Supreme Court case in which the Court first elaborated on the exhaustion doctrine. According to that doctrine, a so-called authorized sale of a patented product (one made by the patentee or a person authorized by it to sell the product) liberates the product from the patent ...
Case law provides other defenses, such as the first-sale doctrine, the right to repair, and unenforceability because of inequitable conduct. In the case of a medical procedure patent issued after 1996, a U.S. infringer may also raise a statutory safe harbor defense to infringement.
The America Invents Act didn't change meaning of the law, which requires patenting an invention within one year of a public or private sale, the justices ruled.
John Wiley & Sons, Inc., 133 S. Ct. 1351 (2012), should this court overrule Jazz Photo Corp. v. International Trade Commission, 264 F.3d 1094 (Fed. Cir. 2001), to the extent it ruled that a sale of a patented item outside the United States never gives rise to United States patent exhaustion.
The definition of the first-sale doctrine must be broadened to limit a patent holder's rights, when those rights which restrict a consumer's choices or freedom of trade and result in a consumer becoming locked into a patent by the patent holder's indirect and socially undesirable business strategy.