U.S. Supreme Court,
Intellectual Property,
Corporate
May 23, 2017
Justices mulling 'conditional sale' doctrine
Many believe the Supreme Court will abolish the conditional sale doctrine in favor of a broader rule of patent exhaustion. If so, patent holders will no longer be able to enforce post-sale restrictions through infringement claims.
The U.S. Supreme Court is considering whether to put an end to the "conditional sale" doctrine, which allows a patent holder to sell a patented invention with post-sale restrictions that limit the manner in which the invention may be used or resold, enforceable through patent infringement claims. Companies that sell certain types of patented goods - including medical devices and print cartridges - have long relied on the conditional sale doctrine in structuring their business models.
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