What does the patent exhaustion doctrine say about an authorized sale and the patent holder’s control over subsequent use?

What does the patent exhaustion doctrine say about an authorized sale and the patent holder’s control over subsequent use?

• A. Authorized sale terminates the patent holder's right to control use.
• B. Authorized sale expands the patent holder's rights.
• C. Authorization has no effect on patent rights.
• D. Only applies to physical devices but not methods.

Answer: (A)

Patent exhaustion follows an authorized sale of a patented item. Once that sale occurs, the patent holder’s rights to control the use of that specific item are exhausted. The buyer may use, resell, or otherwise dispose of the item without needing further permission or paying additional royalties. This prevents the patentee from imposing post-sale restrictions on how the sold item is used. The exhausted right applies to the particular item sold (and its embodiments), not to unpatented aspects or other inventions, so the patentee can still pursue rights related to different products or improvements that weren’t part of the authorized sale.

Patent exhaustion follows an authorized sale of a patented item. Once that sale occurs, the patent holder’s rights to control the use of that specific item are exhausted. The buyer may use, resell, or otherwise dispose of the item without needing further permission or paying additional royalties. This prevents the patentee from imposing post-sale restrictions on how the sold item is used. The exhausted right applies to the particular item sold (and its embodiments), not to unpatented aspects or other inventions, so the patentee can still pursue rights related to different products or improvements that weren’t part of the authorized sale.