What does the exhaustion concept imply about the rights in a patented item after an authorized sale?

What does the exhaustion concept imply about the rights in a patented item after an authorized sale?

• A. The purchaser is free to use or resell the item without further permission.
• B. The patent holder retains rights to control every downstream use.
• C. Exhaustion only applies to devices, not methods.
• D. Exhaustion voids all patent rights worldwide.

Answer: (A)

Exhaustion means that once a patented item is sold with authorization, the patent holder’s control over that specific item ends. The purchaser can use the item, resell it, or pass it along without needing additional permission from the patent owner. The patent rights are not a blanket veto on all downstream activity for that product after sale. This right applies to the sold item itself, not to other related products or new inventions, and it isn’t automatically worldwide in scope.

Exhaustion means that once a patented item is sold with authorization, the patent holder’s control over that specific item ends. The purchaser can use the item, resell it, or pass it along without needing additional permission from the patent owner. The patent rights are not a blanket veto on all downstream activity for that product after sale. This right applies to the sold item itself, not to other related products or new inventions, and it isn’t automatically worldwide in scope.