The exhaustion-of-rights doctrine, a principle in international law, stipulates that once a product protected by a patent or other intellectual property right is sold, the seller loses control over its resale within the same market. This principle also extends to the import and export of goods between countries within a common market, such as the European Union. In simpler terms, if you sell a toy to someone, you cannot dictate what they do with it after the purchase.
The exhaustion-of-rights doctrine is a principle in international law that states that once an intellectual property right owner sells a product covered by that right, they no longer have the right to control how the product is resold within the same market. This principle also applies to the import and export of goods between member nations in a common market, like the European Union. For instance, if a company has a patent for a specific product and sells it to a distributor, the company cannot dictate how the distributor resells the product within the same market. The company cannot prevent the distributor from selling the product at a lower price or in a different manner. Similarly, if someone purchases a book from a bookstore, the author of the book cannot control how the person resells the book to another individual. Once the book is sold, the author loses the right to control its resale within the same market. These examples demonstrate the practical application of the exhaustion-of-rights doctrine. It enables the unrestricted movement of goods within a market and encourages competition, ultimately benefiting consumers.
The Exhaustion-of-Rights Doctrine is a legal principle that limits the control a rights holder has over a particular product or invention after it has been sold or distributed.
Under this doctrine, once a rights holder sells or authorizes the sale of a product, they no longer have the ability to control what happens to that specific product. The purchaser is then free to use, resell, or modify the product without infringing on the rights holder’s intellectual property.
The doctrine generally applies to patents, copyrights, and trademarks, but the specific application may vary depending on the jurisdiction and the nature of the intellectual property right.
Yes, the rights holder can place restrictions on the use or resale of their product through contractual agreements or licensing arrangements. However, such restrictions must be clearly communicated and agreed upon by the purchaser.
The application of the doctrine to digital products or software is a complex and evolving area of law. Courts have generally been more reluctant to apply the doctrine to intangible goods, but there have been cases where exhaustion has been recognized.
Yes, if a purchaser or subsequent owner of a product can demonstrate that the rights holder’s rights have been exhausted, they may use the doctrine as a defence against infringement claims.
The doctrine can limit the rights holder’s ability to control the import and sale of gray market goods, which are genuine products sold outside the authorized distribution channels. However, the specific rules regarding gray market goods vary by jurisdiction.
Yes, the doctrine applies to patented inventions, allowing the purchaser of a patented product to use, repair, or resell it without infringing on the patent holder’s rights.
No, the doctrine does not allow purchasers to bypass licensing requirements or use patented or copyrighted materials in a manner that exceeds the scope of the original license.
International agreements and treaties can influence the application of the Exhaustion-of-Rights Doctrine, and some countries may have different interpretations or limitations on the doctrine based on their international obligations.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/exhaustion-of-rights-doctrine/
- Modern Language Association (MLA):Exhaustion-Of-Rights Doctrine. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/exhaustion-of-rights-doctrine/.
- Chicago Manual of Style (CMS):Exhaustion-Of-Rights Doctrine. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/exhaustion-of-rights-doctrine/ (accessed: May 09 2024).
- American Psychological Association (APA):Exhaustion-Of-Rights Doctrine. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/exhaustion-of-rights-doctrine/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts