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Message: Quanta - Jones Day Analysis..
1
Apr 30, 2009 10:13PM


The analysis below was provided by Jones Day (huge law firm)..the hyperlink below was provided for full context..such that I would not be accused of cherry picking..

http://209.85.129.132/search?q=cache...

While Quanta will likely have some impact in the context of patent litigation, the effects of Quanta may reverberate even more so in the context of patent licenses. Despite the outcome in Quanta, it is important to understand that the Supreme Court did not eliminate a patentee's ability to create restrictions or conditions within a license agreement that might avoid later application of the patent exhaustion defense. In fact, the Supreme Court indicated that Intel's sale might not have been authorized—and thus, the patent exhaustion doctrine might not have applied—if the license grant to Intel had explicitly excluded Intel's right to sell products to customers who would combine the licensed Intel products with non-Intel products downstream. Patent owners can learn from Quanta when structuring licenses to ensure that the license grant offered is as narrow and circumscribed as possible, such as through field-of-use and market limitations. Put simply, unlike what was done in Quanta, the patent owner must be careful to explicitly limit the scope of the license itself in a way that ensures the patent owner will receive the compensation it expects from the sale of each licensed product.

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May 02, 2009 08:20AM
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