October Term 2016 · Docket 15-1189
Does a foreign sale exhaust U.S. patent rights?
Lexmark sold toner cartridges abroad with use restrictions. Impressions resold them in the U.S. Lexmark sued for infringement. The lower court sided with Lexmark.
Verified source milestones
- — An official oral-argument transcript was verified.
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Mr. Pincus argued the exhaustion doctrine terminates all patent rights after an authorized sale. He cited the Bowman case to support this broad interpretation.
Mr. Stewart addressed the domestic exhaustion issue first. He responded to questions about why the doctrine lacks codification.
Mr. Trela agreed with the government on one point. He stated the Federal Circuit properly looked to the statute for the doctrine's limits.
Justice Alito questioned the strategy of disregarding a rule adopted by the Federal Circuit. He noted this approach seemed counterintuitive for patent holders.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 11, lines 4-26 — Transcript, file page 11, lines 4-26
- Official Supreme Court Transcript — file page 13, lines 44-18 — Transcript, file page 13, lines 44-18
- Official Supreme Court Transcript — file page 14, lines 22-4 — Transcript, file page 14, lines 22-4
- Official Supreme Court Transcript — file page 15, lines 24-34 — Transcript, file page 15, lines 24-34
- Official Supreme Court Transcript — file page 15, lines 46-6 — Transcript, file page 15, lines 46-6
- Official Supreme Court Transcript — file page 21, lines 14-24 — Transcript, file page 21, lines 14-24
- Official Supreme Court Transcript — file page 29, lines 46-40 — Transcript, file page 29, lines 46-40
- Official Supreme Court Transcript — file page 3, lines 20-26 — Transcript, file page 3, lines 20-26
- Official Supreme Court Transcript — file page 3, lines 8-18 — Transcript, file page 3, lines 8-18
- Official Supreme Court Transcript — file page 4, lines 28-32 — Transcript, file page 4, lines 28-32
- Official Supreme Court Transcript — file page 4, lines 52-6 — Transcript, file page 4, lines 52-6
- Official Supreme Court Transcript — file page 45, lines 14-50 — Transcript, file page 45, lines 14-50
- Official Supreme Court Transcript — file page 5, lines 10-10 — Transcript, file page 5, lines 10-10
- Official Supreme Court Transcript — file page 5, lines 34-36 — Transcript, file page 5, lines 34-36
- Official Supreme Court Transcript — file page 53, lines 10-22 — Transcript, file page 53, lines 10-22
- Official Supreme Court Transcript — file page 53, lines 24-24 — Transcript, file page 53, lines 24-24
- Official Supreme Court Transcript — file page 55, lines 16-18 — Transcript, file page 55, lines 16-18
- Official Supreme Court Transcript — file page 6, lines 34-36 — Transcript, file page 6, lines 34-36
- Official Supreme Court Transcript — file page 7, lines 18-22 — Transcript, file page 7, lines 18-22
- Official Supreme Court Transcript — file page 8, lines 8-18 — Transcript, file page 8, lines 8-18
A citizen's guide to the whole case
What this case is about
The case tests the patent exhaustion doctrine. This doctrine limits patent rights after an authorized sale. The core dispute involves sales made outside the United States.
Official sources for this section
- Official Supreme Court Transcript — file page 21, lines 14-24 — Transcript, file page 21, lines 14-24
- Official Supreme Court Transcript — file page 29, lines 46-40 — Transcript, file page 29, lines 46-40
- Official Supreme Court Transcript — file page 3, lines 20-26 — Transcript, file page 3, lines 20-26
- Official Supreme Court Transcript — file page 45, lines 14-50 — Transcript, file page 45, lines 14-50
- Official Supreme Court Transcript — file page 53, lines 10-22 — Transcript, file page 53, lines 10-22
How the case got here
The Supreme Court heard oral argument in this case on March 21, 2017.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 8-18 — Transcript, file page 3, lines 8-18
- Official Supreme Court Transcript — file page 53, lines 24-24 — Transcript, file page 53, lines 24-24
What each side wants
Impressions wants the Court to hold that a foreign authorized sale exhausts U.S. patent rights. This would allow the resale of imported goods without infringement liability.
Lexmark wants the Court to hold that a foreign sale does not exhaust U.S. patent rights. This would allow patent holders to enforce use restrictions on imported goods.
Official sources for this section
- Official Supreme Court Transcript — file page 21, lines 14-24 — Transcript, file page 21, lines 14-24
- Official Supreme Court Transcript — file page 29, lines 46-40 — Transcript, file page 29, lines 46-40
- Official Supreme Court Transcript — file page 3, lines 20-26 — Transcript, file page 3, lines 20-26
- Official Supreme Court Transcript — file page 45, lines 14-50 — Transcript, file page 45, lines 14-50
- Official Supreme Court Transcript — file page 53, lines 10-22 — Transcript, file page 53, lines 10-22
What each side says
Impressions argues the exhaustion doctrine applies regardless of where the sale occurs. They contend the initial authorized sale terminates all patent rights to that specific item.
Lexmark argues the exhaustion doctrine is limited by statute. They contend the patent holder retains the right to restrict use of items sold under foreign laws.
Official sources for this section
- Official Supreme Court Transcript — file page 21, lines 14-24 — Transcript, file page 21, lines 14-24
- Official Supreme Court Transcript — file page 29, lines 46-40 — Transcript, file page 29, lines 46-40
- Official Supreme Court Transcript — file page 3, lines 20-26 — Transcript, file page 3, lines 20-26
- Official Supreme Court Transcript — file page 45, lines 14-50 — Transcript, file page 45, lines 14-50
- Official Supreme Court Transcript — file page 53, lines 10-22 — Transcript, file page 53, lines 10-22
What the justices asked
Justice Kennedy asked why the exhaustion doctrine has not been codified by Congress.
Justice Breyer asked if a patentee can restrict use of a widget bought in Bavaria under a U.S. patent after a foreign sale.
Official sources for this section
- Official Supreme Court Transcript — file page 11, lines 4-26 — Transcript, file page 11, lines 4-26
- Official Supreme Court Transcript — file page 13, lines 44-18 — Transcript, file page 13, lines 44-18
- Official Supreme Court Transcript — file page 14, lines 22-4 — Transcript, file page 14, lines 22-4
- Official Supreme Court Transcript — file page 15, lines 24-34 — Transcript, file page 15, lines 24-34
- Official Supreme Court Transcript — file page 15, lines 46-6 — Transcript, file page 15, lines 46-6
- Official Supreme Court Transcript — file page 4, lines 28-32 — Transcript, file page 4, lines 28-32
- Official Supreme Court Transcript — file page 4, lines 52-6 — Transcript, file page 4, lines 52-6
- Official Supreme Court Transcript — file page 5, lines 10-10 — Transcript, file page 5, lines 10-10
- Official Supreme Court Transcript — file page 5, lines 34-36 — Transcript, file page 5, lines 34-36
- Official Supreme Court Transcript — file page 55, lines 16-18 — Transcript, file page 55, lines 16-18
- Official Supreme Court Transcript — file page 6, lines 34-36 — Transcript, file page 6, lines 34-36
- Official Supreme Court Transcript — file page 7, lines 18-22 — Transcript, file page 7, lines 18-22
- Official Supreme Court Transcript — file page 8, lines 8-18 — Transcript, file page 8, lines 8-18
Why it matters
This case defines the geographic scope of patent exhaustion. It determines whether patent holders can control the resale of goods sold abroad. The outcome affects the global trade of patented products. It shapes the balance between patent rights and free commerce.
Official sources for this section
- Official Supreme Court Transcript — file page 21, lines 14-24 — Transcript, file page 21, lines 14-24
- Official Supreme Court Transcript — file page 29, lines 46-40 — Transcript, file page 29, lines 46-40
- Official Supreme Court Transcript — file page 3, lines 20-26 — Transcript, file page 3, lines 20-26
- Official Supreme Court Transcript — file page 45, lines 14-50 — Transcript, file page 45, lines 14-50
- Official Supreme Court Transcript — file page 53, lines 10-22 — Transcript, file page 53, lines 10-22
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 11, lines 4-26 — Transcript, file page 11, lines 4-26
- Official Supreme Court Transcript — file page 13, lines 44-18 — Transcript, file page 13, lines 44-18
- Official Supreme Court Transcript — file page 14, lines 22-4 — Transcript, file page 14, lines 22-4
- Official Supreme Court Transcript — file page 15, lines 24-34 — Transcript, file page 15, lines 24-34
- Official Supreme Court Transcript — file page 15, lines 46-6 — Transcript, file page 15, lines 46-6
- Official Supreme Court Transcript — file page 3, lines 8-18 — Transcript, file page 3, lines 8-18
- Official Supreme Court Transcript — file page 4, lines 28-32 — Transcript, file page 4, lines 28-32
- Official Supreme Court Transcript — file page 4, lines 52-6 — Transcript, file page 4, lines 52-6
- Official Supreme Court Transcript — file page 5, lines 10-10 — Transcript, file page 5, lines 10-10
- Official Supreme Court Transcript — file page 5, lines 34-36 — Transcript, file page 5, lines 34-36
- Official Supreme Court Transcript — file page 53, lines 24-24 — Transcript, file page 53, lines 24-24
- Official Supreme Court Transcript — file page 55, lines 16-18 — Transcript, file page 55, lines 16-18
- Official Supreme Court Transcript — file page 6, lines 34-36 — Transcript, file page 6, lines 34-36
- Official Supreme Court Transcript — file page 7, lines 18-22 — Transcript, file page 7, lines 18-22
- Official Supreme Court Transcript — file page 8, lines 8-18 — Transcript, file page 8, lines 8-18
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 21, lines 14-24 — Transcript, file page 21, lines 14-24
- Official Supreme Court Transcript — file page 29, lines 46-40 — Transcript, file page 29, lines 46-40
- Official Supreme Court Transcript — file page 3, lines 20-26 — Transcript, file page 3, lines 20-26
- Official Supreme Court Transcript — file page 45, lines 14-50 — Transcript, file page 45, lines 14-50
- Official Supreme Court Transcript — file page 53, lines 10-22 — Transcript, file page 53, lines 10-22
- Official Supreme Court Transcript — file page 21, lines 14-24 — Transcript, file page 21, lines 14-24
- Official Supreme Court Transcript — file page 29, lines 46-40 — Transcript, file page 29, lines 46-40
- Official Supreme Court Transcript — file page 3, lines 20-26 — Transcript, file page 3, lines 20-26
- Official Supreme Court Transcript — file page 45, lines 14-50 — Transcript, file page 45, lines 14-50
- Official Supreme Court Transcript — file page 53, lines 10-22 — Transcript, file page 53, lines 10-22
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.