What's mine is mine and what's yours is mine too: Converging U.S. intellectual property exhaustion doctrines

Abstract

With the increasing dispersion of intellectual property comes the intellectual property rights owner's continued desire to retain that part of the equation for which the bargain was struck. In terms of patents, the patentee strikes a deal to disclose the invention to the public in exchange for a monopoly over its use for a limited term. Copyright holders contribute their works to the intellectual pool receiving value by sale, lease or license. In 2012–13, the U.S. Supreme Court was tasked with delineating the realms of two intellectual property exhaustion doctrines and answering the question of where to draw the line with regard to an IP owner's ability to control the protected invention or work via patent or copyright, respectively. In one case, the Court permitted the intellectual property owner to restrict a subsequent purchaser's use of the product subject to protection, while in the other case the Court rejected the intellectual property owner's attempt to control the downstream use or resale of the product. This article discusses the relevant intellectual property exhaustion doctrines, analyzes and reconciles the Court's decisions in these cases, and provides guidance for navigating restrictions on use of U.S. protected products and works around the globe.