Supreme Court to hear patent exhaustion caseSeptember 25, 2007

In its first conference of this Term, the Supreme Court today granted certiorari in Quanta Computer, Inc. v. LG Electronics, Inc. (No. 06-937). Our previous coverage of the case can be found in these two posts.

The question presented is:

Whether the Federal Circuit erred by holding, in conflict with decisions of this Court and other courts of appeals, that respondent's patent rights were not exhausted by its license agreement with Intel Corporation, and Intel's subsequent sale of the product under the license to petitioners.

The outcome of the case could have a substantial effect on how patent license agreements are both drafted and construed by courts. The case will likely be argued in early 2008.

Relevant links:

Update (1:00): The Associated Press provides this report on the case, and Reuters provides this report.

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