Supreme Court Expands Exhaustion Doctrine
June 30, 2008By: Jason M. Honeyman
MX
Summary
The U.S. Supreme Court issued its decision in Quanta Computer Inc. v. LG Electronics Inc., thereby limiting the ability of patent owners to demand downstream royalties from customers of licensees. Although Quanta involved manufacturers in the laptop computer industry, the ruling has implications for medical device manufacturers, many of whom routinely incorporate components purchased from outside vendors into their final products.
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