What is the doctrine of patent exhaustion?

The doctrine of patent exhaustion is a legal principle that explains how a patent holder’s patent rights are limited once they sell their invention. It is also referred to as the first sale doctrine. Put simply, the doctrine of patent exhaustion means that when a patent holder sells an invention, they are no longer able to control the use of the product. In other words, the patent holder no longer has any rights to the product, nor can they prevent someone from using it or reselling it. In Georgia, the doctrine of patent exhaustion is provided for under the Unfair Competition Law. According to the law, a patent holder in Georgia cannot prevent someone from reselling their invention after it has been acquired and paid for, unless there is a contractual agreement that states otherwise. Put simply, a patent holder may not use their patent to inhibit the sale of their invention to a third party. In addition, the doctrine of patent exhaustion also prevents a patent holder from charging royalties each time their invention is used. In other words, a patent holder cannot receive extra money each time an invention is sold or used. This allows consumers to buy and sell products without fear of being overcharged. In short, the doctrine of patent exhaustion prevents patent holders from controlling the sale of their invention after it has been sold. It also prevents them from charging extra money each time the invention is used or sold. This is important for consumers in Georgia, as it ensures that they can buy and sell products without fear of infringement or extra fees.

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What is the doctrine of patent exhaustion?

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