U.S. Supreme Court to Hear Case on Patent Exhaustion

Dec 8, 2016

Reading Time : 2 min

The patent exhaustion doctrine, or “first sale doctrine,” requires that the initial authorized sale of a patented item terminate all patent rights to that item. The Court of Appeals for the Federal Circuit, however, has recognized two exceptions to this doctrine. First, in Mallinckrodt, Inc. v. Medipart, Inc., the Federal Circuit held that a patentee may transfer title to the patented article and specify a post-sale reuse or resale restriction on the article that may be enforced by patent laws. See 976 F.2d 700.  Second, in Jazz Photo Corp. v. International Trade Commission, the Federal Circuit held that a patentee’s U.S. patent rights are not exhausted when it sells the patented article outside the United States. See 264 F. 3d 1094.

Lexmark is a printer manufacturer that makes and sells patented toner cartridges for its printers. Impression Products is a remanufacturer of toner cartridges. In 2010, Lexmark brought suit against Impression Products and other remanufacturers for patent infringement. See Lexmark Int’l, Inc. v. Impression Prods., 816 F.3d 721, 728-729 (Fed. Cir. 2016).  Impression Products moved to dismiss Lexmark’s claims on the grounds that Lexmark exhausted its U.S. patent rights in the cartridges in two manners. First, Impression Products argued that Lexmark’s single-use/no-resale requirement was an invalid post-sale restriction under the Court’s decision in Quanta, 553 U.S. at 637. Id. at 731. Second, Impression Products argued that Lexmark exhausted its patent rights as to cartridges first sold abroad under the Court’s copyright exhaustion analysis in Kirtsaeng, 133 S. Ct. 1351 (2013). Id. at 731-32.

The district court for the Southern District of Ohio held that Lexmark did not exhaust its U.S. patent rights in toner cartridges that Lexmark initially sold abroad. Lexmark, 816 F.3d at 730. The district court further held, however, that the patent exhaustion doctrine barred Lexmark’s patent infringement regarding toner cartridges that were first sold by Lexmark in the United States, concluding that post-sale use restrictions did not preclude patent exhaustion after an authorized sale under Quanta. Id.

After subsequent appeals by both parties, in February 2016, the Federal Circuit en banc issued a 10-2 decision reaffirming that foreign sales do not exhaust patent rights and holding that post-sale use restrictions preclude patent exhaustion after an authorized sale.

Impression Products petitioned for a writ of certiorari regarding the scope of patent exhaustion with respect to foreign sales and post-sale use restrictions. The Court will hear both issues. This is the fourth patent case the Court has taken this term.

Impression Products, Inc. v. Lexmark International, Inc., 15-1189

Share This Insight

Previous Entries

IP Newsflash

March 24, 2025

The Federal Circuit affirmed a Patent Trial and Appeal Board (PTAB) final written decision holding that the prior art exception of AIA Section 102(b)(2)(B) does not apply to a prior sale by an inventor when the sale is conducted in private. According to the Federal Circuit, a sale must disclose the relevant aspects of the invention to the public to qualify for the prior art exception of Section 102(b)(2)(B).

...

Read More

IP Newsflash

March 21, 2025

Under the Lanham Act, a plaintiff who prevails on a trademark infringement claim may be entitled to recover the “defendant’s profits” as damages. The Supreme Court in Dewberry Group, Inc. v. Dewberry Engineers Inc. unanimously construed “defendant’s profits” in 35 USC § 1117(a) to mean that only the named defendant’s profits can be awarded, not the profits of other related corporate entities. The Court, however, left open the possibility that other language in § 1117(a) may allow for damages linked to the profits of related entities, if properly raised and supported.

...

Read More

IP Newsflash

March 13, 2025

In a series of rulings on a motion in limine, the District of Delaware recently distinguished between what qualifies as being incorporated by reference and what does not for the purposes of an anticipation defense. In short, a parenthetical citation was held to be insufficient, while three passages discussing a cited reference met the test.

...

Read More

IP Newsflash

March 4, 2025

On February 28, 2025, the USPTO announced that it was rescinding former Director Vidal’s 2022 memorandum on discretionary denials by the Patent Trial and Appeal Board. The 2022 memorandum effectively narrowed the application of discretionary denials in cases with parallel district court litigation by specifying instances where discretionary denial could not be issued. With the withdrawal of the memorandum, individual PTAB panels will regain flexibility in weighing discretionary denials. While the long-term effect of that increased flexibility is not yet known, the immediate effect is likely to be a shift towards the discretionary analysis applied by PTAB panels before the issuance of the memorandum.

...

Read More

IP Newsflash

March 3, 2025

A District of Delaware judge recently granted a defendant’s motion to include a patent prosecution bar in its proposed protective order after determining that litigation counsel’s ability to practice before the Patent Office—without ever having represented the plaintiffs at the Patent Office in the past—weighed heavily in favor of the bar.

...

Read More

IP Newsflash

February 12, 2025

The Federal Circuit recently reversed a district court decision that found a patent that did not describe after-arising technology failed to satisfy the written description requirement. In so doing, the Federal Circuit explained that written description and enablement are evaluated based on the subject matter that is claimed, not the products that practice those claims. As a result, the patentee was not required to describe unclaimed, later-discovered features of the accused products despite the broad language in the claims that undisputedly covered the products.

...

Read More

IP Newsflash

January 24, 2025

The District of Delaware recently rejected a patentee’s argument that non-production of an opinion letter from counsel, combined with knowledge of the patent, warranted a finding that defendant induced infringement.

...

Read More

IP Newsflash

January 17, 2025

The District of Delaware recently denied a motion to dismiss a patent infringement complaint involving gene editing technology that sought relief under the Safe Harbor Provision of the Hatch-Waxman Act. Specifically, the court found the patentee’s complaint sufficiently alleged at least some uses of the claimed technology that, when taken as true, were not solely uses of a “patented invention” that were “reasonably related” to an FDA submission.

...

Read More

© 2025 Akin Gump Strauss Hauer & Feld LLP. All rights reserved. Attorney advertising. This document is distributed for informational use only; it does not constitute legal advice and should not be used as such. Prior results do not guarantee a similar outcome. Akin is the practicing name of Akin Gump LLP, a New York limited liability partnership authorized and regulated by the Solicitors Regulation Authority under number 267321. A list of the partners is available for inspection at Eighth Floor, Ten Bishops Square, London E1 6EG. For more information about Akin Gump LLP, Akin Gump Strauss Hauer & Feld LLP and other associated entities under which the Akin Gump network operates worldwide, please see our Legal Notices page.