What is the doctrine of patent exhaustion?

The doctrine of patent exhaustion is a legal principle in Texas that limits the rights of patent holders. This doctrine prevents patent holders from controlling the use of their product after they have sold it. For example, if a company holds the patent for a medical device, they cannot prevent a purchaser of that device from using or reselling it. Under the doctrine of patent exhaustion, the patent holder’s exclusive right to make, use, or sell a product only applies to the original product they have sold or given away. This means that a patent holder cannot sue for patent infringement if a purchaser re-sells or uses one of their products after they have sold it. The patent holder’s control and ownership over their product ends when it leaves their hands. The doctrine of patent exhaustion applies to both tangible and intangible products, such as software. It is important to note that the doctrine of patent exhaustion does not apply to any improvements or derivatives of a product that the patent holder has not sold or given away. Furthermore, patent exhaustion does not apply to certain services that may be related to a patented product. Overall, the doctrine of patent exhaustion limits the rights of patent holders by preventing them from controlling the use of their products after they have been sold. By doing so, it ensures that others have the freedom to make reasonable uses of products without fear of patent infringement.

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What is the doctrine of patent exhaustion?

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