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You're Not Exhausted: U.S. Patent Rights Are Not Exhausted By Foreign Sales

Your client International Marketers, Inc. (IMI) owns U.S. and foreign patents for an improved football. IMI wants to license the patent and make direct sales of identical balls around the world, while making its own sales to the U.S. market. However, IMI knows that the price consumers will pay for its football is much higher in the United States than elsewhere. IMI is concerned that footballs sold by it and its licensees to distributors outside the United States might be purchased by third parties and imported back into the United States at a price below what it hopes to charge distributors in the United States.

22 minute read February 25, 2005 at 08:23 AM
By
Matthew W. Siegal And Angie M. Hankins
You're Not Exhausted: U.S. Patent Rights Are Not Exhausted By Foreign Sales

Your client International Marketers, Inc. (IMI) owns U.S. and foreign patents for an improved football. IMI wants to license the patent and make direct sales of identical balls around the world, while making its own sales to the U.S. market.

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