What is the doctrine of patent exhaustion?

The doctrine of patent exhaustion is an important legal principle which applies in Virginia and states that a patent holder’s rights are limited once they sell a patented product. This means that the owner of a patented invention cannot control what people do with the product after its sale, and restricts them from using their patent rights to control the use of the product after its sale. In other words, the patent owner’s rights to control or restrict the product’s use end once the item is sold to the consumer. The doctrine of patent exhaustion is important in cases involving unfair competition law. For example, when a patent holder’s product is sold at a lower price than their own, some parties may use their patent rights to restrict the sale of that product in order to prevent competition. This type of behavior is considered unfair competition and is prohibited under Virginia law. Without the doctrine of patent exhaustion, the patent holder would be able to use their patent rights to indefinitely prevent others from selling their product, even after it has been purchased by a consumer. The doctrine of patent exhaustion prevents patent holders from using their patent rights to control the use of their product after it has been sold.

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What is the doctrine of patent exhaustion?

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