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Nội dung text Patent Licensing - PATENT EXHAUSTION 29.04.2025.pptx


Doctrine of Exhaustion derived from the Doctrine of First Sale The Doctrine of Exhaustion of Intellectual Property Rights (IPR), describes the principle that the rights over an intellectual property (such as patents, trademarks, and copyrights) are exhausted following a lawful sale or transfer of the physical item that embodies or displays the intellectual property. In simpler terms, once a legitimate sale has occurred, the intellectual property holder loses the authority to restrict or interfere with any subsequent resale or distribution of the product containing the intellectual property.
When a patent holder sells or authorizes the sale of a patented item, “that product ‘is no longer within the limits of the monopoly’ [created by the patent] and instead becomes the ‘private, individual property’ of the purchaser.” [Bloomer v. McQuewan, 55 U.S. 539, 549-50 (1853)]
Rationale: IP owner or the patent owner ought to be allowed exploitation of the IP right only once and not on multiple occasions. IP owners ought not to take advantage of geographical boundaries and control the free movement of goods or services across countries.

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