An authorized sale exhausts the patentee's rights in that article, permitting resale and use without further authorization. Impression Products held that exhaustion applies to foreign sales and that post-sale restrictions do not preserve patent rights.
Contract remedies may survive exhaustion.
Alternative Names:
Exhaustion (Patent)|First Sale (Patent)
Why it Matters?
Impression Products eliminated post-sale restrictions as a patent enforcement mechanism, which means single-use and no-resale conditions are enforceable only as contract terms against the direct purchaser rather than as patent claims against downstream parties. Licensing rather than selling remains an alternative structure, since exhaustion attaches to sales and a genuine license conveying limited rights may avoid it.
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Related terms
Frequently asked questions
What did Impression Products change?
What structure avoids exhaustion?
