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Federal Circuit To Revisit Patent Exhaustion <i>En Banc</i>

By Guy Yonay
June 02, 2015

The Court of Appeals for the Federal Circuit is set to hear argument en banc, in Lexmark International, Inc. v. Impression Products, Inc., No. 14-1617 (Fed. Cir., Apr. 14 2015), a case involving two critical aspects of patent exhaustion. As an indication of the importance of the issues, the court ordered the en banc hearing sua sponte after oral argument but before any decision, rather than at the request of a litigant for rehearing after a panel decision.

The appeal raises two issues: 1) whether a patentee may condition domestic sale of a patented article conditioned upon a use restriction; and 2) whether sale of a patented article abroad exhausts all patent rights in the event the article is later imported into the United States.

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