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LSDefine
Simple English definitions for legal terms
exhaustion
Read a random definition: motion papers
A quick definition of exhaustion:
Exhaustion means that once someone sells a product that has a patent, they can't sue the person who buys it for having a copy of the patented product. This means the buyer can use the product and sell it without any problems. For example, if you buy a laptop from Apple, you can use it, lend it to someone else, or sell it without getting in trouble. There are some exceptions, like if the patent owner puts conditions on the use of the product when it's sold. In that case, they can sue the buyer for breaking the rules. The Supreme Court has said that a patent owner can also stop the buyer from selling the product to someone who would change it.
A more thorough explanation:
Exhaustion is a legal concept that means once a patent owner sells a product, they can't sue the buyer for using or reselling it. The patent owner's exclusive rights to the product are "exhausted" or used up after the sale. This means the buyer can use the product however they want, lend it to someone else, or sell it without fear of being sued.
For example, if you buy a laptop from Apple, they can't sue you for using it or selling it to someone else. Once they sell the laptop, they no longer have control over it.
However, there are some exceptions to this rule. If the patent owner attaches certain conditions to the sale of the product, they can still sue the buyer for breaking those conditions. For instance, if Apple sold you a laptop but said you couldn't resell it, they could sue you if you did.
The Supreme Court has also said that a patent owner can prevent a buyer from selling a product to someone who would alter it. For example, if Apple sold you a laptop but said you couldn't sell it to someone who would take it apart and use the parts to make their own laptop, they could sue you if you did.