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Quanta v. LG Electronics, Inc.: The Supreme Court Extends Patent Exhaustion To Patented Methods

July 7, 2008 /

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On June 9, 2008, the Supreme Court in Quanta Computer, Inc. v. LG Electronics, Inc. unanimously reversed the Court of Appeals for the Federal Circuit and held that the doctrine of patent exhaustion applies to method patents. 06-937, 553 U.S. ___ (2008) It is now settled that a licensee’s authorized sale of components, which embody a patented apparatus or method and which have no reasonable use other than to practice the patent, exhausts the patent holder’s rights.

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