Definition
Patent exhaustion is the doctrine that once a patented product is sold with authorization, the owner cannot use the patent to control its further use or resale.
Why It Matters Legally
Exhaustion limits how far a patent owner can extend control downstream, affecting licensing and resale strategies. It is a frequent issue in disputes over refurbished or resold products.
Example Use Case
After authorizing the sale of a patented device, a manufacturer cannot use the patent to stop the buyer from reselling it.
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