Dadnatron
Veteran Member
This week, SCOTUS shot down the ability for a manufacturer to impose 'post sale' injunctions on a product.
In short, Lexmark (computer printers) had sued a printer cartridge refiller for patent infringement and breach of contract. Basically saying "We sold those cartridges at a 20% discount with the express requirement that they not be refilled, and that they were returned to the manufacturer." Well... this sounds a lot like JD (and other manufacturers) who impose software code locks basically prohibiting owners from working on their own equipment without massive outlays in more JD purchases of scanners, software, etc etc.
SCOTUS pressed the unanimous opinion that 'when a company sells a product they have no more hold over that product'. I suspect the tractor fallout of this ruling will occur in the next year or so.
Here is a quick excerpt:
The court could hardly have been more unequivocal in its broad embrace of a mandatory doctrine of exhaustion. For the court, the doctrine seemed to devolve ineluctably from the first principles of the law of patents:
When a patentee chooses to sell an item, that product is no longer within the limits of the monopoly and instead becomes the private, individual property of the purchaser, with the rights and benefits that come along with ownership. A patentee is free to set the price and negotiate contracts with purchasers, but may not, by virtue of his patent, control the use or disposition of the product after ownership passes to the purchaser. The sale terminates all patent rights to that item. - directly from the SCOTUS opinion.
The court praised the 妬mpeccable historic pedigree of the exhaustion doctrine, tracing its lineage back to the common law痴 refusal to permit restraints on the alienation of chattels. With a flourish of rhetorical excess, the court suggested that post-sale conditions on alienation 塗ave been hateful to the law from Lord Coke痴 day to ours and are obnoxious to the public interest. The inconvenience and annoyance to the public that an opposite conclusion would occasion are too obvious to require illustration.
In short, Lexmark (computer printers) had sued a printer cartridge refiller for patent infringement and breach of contract. Basically saying "We sold those cartridges at a 20% discount with the express requirement that they not be refilled, and that they were returned to the manufacturer." Well... this sounds a lot like JD (and other manufacturers) who impose software code locks basically prohibiting owners from working on their own equipment without massive outlays in more JD purchases of scanners, software, etc etc.
SCOTUS pressed the unanimous opinion that 'when a company sells a product they have no more hold over that product'. I suspect the tractor fallout of this ruling will occur in the next year or so.
Here is a quick excerpt:
The court could hardly have been more unequivocal in its broad embrace of a mandatory doctrine of exhaustion. For the court, the doctrine seemed to devolve ineluctably from the first principles of the law of patents:
When a patentee chooses to sell an item, that product is no longer within the limits of the monopoly and instead becomes the private, individual property of the purchaser, with the rights and benefits that come along with ownership. A patentee is free to set the price and negotiate contracts with purchasers, but may not, by virtue of his patent, control the use or disposition of the product after ownership passes to the purchaser. The sale terminates all patent rights to that item. - directly from the SCOTUS opinion.
The court praised the 妬mpeccable historic pedigree of the exhaustion doctrine, tracing its lineage back to the common law痴 refusal to permit restraints on the alienation of chattels. With a flourish of rhetorical excess, the court suggested that post-sale conditions on alienation 塗ave been hateful to the law from Lord Coke痴 day to ours and are obnoxious to the public interest. The inconvenience and annoyance to the public that an opposite conclusion would occasion are too obvious to require illustration.