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SCOTUS: Patent Rights Over a Printer Cartridge Are Exhausted When It Is Sold

law.cornell.edu

141–150 of 319 posts

Re: SCOTUS: Patent Rights Over a Printer Cartridge Are Exhausted When It Is Sold

#141

Some context for this consequential decision: http://www.npr.org/2017/04/06/522826514/supreme-courts-decis...

I wonder if this will affect the various Qualcomm suits. Qualcomm tries to collect patent royalties from (say) Foxconn based on the sale price between (say) Apple and the carrier/consumer.

Edit: moved long commentary from FOSS blog to separate thread:

https://news.ycombinator.com/item?id=14448205

Re: SCOTUS: Patent Rights Over a Printer Cartridge Are Exhausted When It Is Sold

#142

Earlier quoted context omitted.

contract-wise it seems from case law they're on pretty steady ground. Of consideration + capacity + intent, capacity is probably the trickiest when you're not in person with the counterparty. I think the more interesting angle of attack is by calling this a contract of adhesion, i.e. saying that the vendor is using their superior market position to force a long and disadvantageous contract on customers. At the point…

What if I say aloud "No, I do not agree to the terms of this EULA, but I'm going to click this button in order to install the software anyway." How about that? You may say "but clicking the button indicates agreement" to which I say it does not unless I actually agree to the terms of the EULA. The EULA is the only thing defining the meaning of clicking the button... Lets suppose a techo-archeologist in 2100 finds an…

It depends.

Law is generally meant to be "reasonable" and much depends on the particular facts.

Re: SCOTUS: Patent Rights Over a Printer Cartridge Are Exhausted When It Is Sold

#143

If you want to learn about a really interesting aspect of the "first sale doctrine" and how it applies to software, you should have a look at "Vernor vs Autodesk" in the USA and compare it to "Oracle vs UsedSoft" in the EU. Basically, in the USA the courts determined that if a company sells you software, but in their terms & conditions claim that they are merely granting you a license, then you can't resell the softw…

FCPX doesn't work that way. If you purchased it on its release date 5 years ago, you essentially bought a subscription of free updates that continue through today. Many of these have been major releases with major new functionality, not just minor bug fix updates.

This is very different from the old system of buying something like Word (or FCP 7) in a box, getting a few minor updates to fix bugs, and when the new major version came out, you had to pay at least an upgrade fee, if not full price.

Re: SCOTUS: Patent Rights Over a Printer Cartridge Are Exhausted When It Is Sold

#144
post #14

In short, the sale of a product does not allow you to control what is done with the product afterwards through patent law. I'm assuming this is almost similar to attempts to use copyright law to stop the sale of products on the grey market. http://www.bipc.com/court-rebuffs-attempt-to-use-copyright-l... I do wonder though, if they changed the underlying software on the cartridges they would get into trouble. I do not…

John Deere's stuff can be seen as a legal quirk that actually SHOULD be unconstitutional and the [EFF's Apollo 1201](https://www.eff.org/press/releases/cory-doctorow-rejoins-eff...) project is specifically aiming to find just the right case(s) to take all the way to SCOTUS to declare this.

Re: SCOTUS: Patent Rights Over a Printer Cartridge Are Exhausted When It Is Sold

#145
post #52

I'm a little surprised that Ginsburg dissented here, and also dissented from Kirtsaeng v. John Wiley : naively, she's "liberal", and (at least in my bubble) being "liberal" is associated with wanting less strong IP protection. But I see also that she wrote the majority opinion in Eldred v. Ashcroft , saying that the 28-year extension to copyright terms was constitutional. What's the right way to understand her legal…

> she's "liberal", and (at least in my bubble) being "liberal" is associated with wanting less strong IP protection Hollywood is pretty well known for being liberal.

while I agree with @ckozlowski that Gingsburg's dissent is based on technicality than politics, yes, who can forget the likes of the weasel Christopher Dodd and his long dealing with the wall street and now Hollywood.

Re: SCOTUS: Patent Rights Over a Printer Cartridge Are Exhausted When It Is Sold

#146
post #73
post #14

In short, the sale of a product does not allow you to control what is done with the product afterwards through patent law. I'm assuming this is almost similar to attempts to use copyright law to stop the sale of products on the grey market. http://www.bipc.com/court-rebuffs-attempt-to-use-copyright-l... I do wonder though, if they changed the underlying software on the cartridges they would get into trouble. I do not…

I was under the impression that John Deere's restrictions were licensing-based. But maybe they rely on copyright as well?

Software licenses are copyright licenses.

Re: SCOTUS: Patent Rights Over a Printer Cartridge Are Exhausted When It Is Sold

#147
post #97

Can someone clarify one part: >The other option is to buy a cartridge at a discount through Lexmark’s “Return Program.” In exchange for the lower price, customers who buy through the Return Program must sign a contract agreeing to use the cartridge only once and to refrain from transferring the cartridge to anyone but Lexmark. >As a result, even if the restrictions in Lexmark’s contracts with its customers were clear…

Yes, assuming the contract was valid. Lexmark could in that case sue their customers that sent cartridges to a re-manufacturer. The only one with a relationship with Lexmark is their customer, so that's the only entity they could sue. (However, given that this isn't a case involving Lexmark and a customer, the court didn't rule on that contract, just acknowledges the possibility.) "If the patentee negotiates a contra…

Lexmark could sue the re-manufacturer for tortious interference claiming they are encouraging Lexmark's customers to violate their contracts with them thus financially harming Lexmark.

Re: SCOTUS: Patent Rights Over a Printer Cartridge Are Exhausted When It Is Sold

#148

If you want to learn about a really interesting aspect of the "first sale doctrine" and how it applies to software, you should have a look at "Vernor vs Autodesk" in the USA and compare it to "Oracle vs UsedSoft" in the EU. Basically, in the USA the courts determined that if a company sells you software, but in their terms & conditions claim that they are merely granting you a license, then you can't resell the softw…

I think that this distinction is largely becoming irrelevant in the cloud era. Most software is sold / licensed on a term basis these days, and honestly the industry is healthier as a result. App stores are really the only remaining vestige of "buy once, use forever" -- and I'd guess that the EU isn't interested in going after it thanks to the small dollar amount and huge number of companies who benefit. Software was…

As a consumer, I will never purchase subscription software. If a new version has a feature I need or because of OS upgrade, I'll purchase the new version or an upgrade if offered.

Re: SCOTUS: Patent Rights Over a Printer Cartridge Are Exhausted When It Is Sold

#149

When you can cite Lord Coke in your opinion, I guess it's practically mandatory to do so. > As Lord Coke put it in the 17th century, if an owner restricts the resale or use of an item after selling it, that restriction “is voide, because . . . it is against Trade and Traffique, and bargaining and contracting betweene man and man.” 1 E. Coke, Institutes of the Laws of England §360, p. 223 (1628)

Semi-off-topic: I've noticed that Coke's writings are a bit more similar to "modern English" than other things I've read written in the 1600s. This surprised me, because he was a judge and probably wrote in formal language for the time. Formal language, to me, seems perpetually set back to the way people talked about 60-100 years previously. Thus you'd expect Coke to sound like he's writing in the 1500s, but instead…

Formal writing probably was influenced by the move to standardization of grammar and spelling (which was, after all, elite-driven) sooner than informal writing, so that may be part of the reason for the results you describe in that particular time frame.

Re: SCOTUS: Patent Rights Over a Printer Cartridge Are Exhausted When It Is Sold

#150

If you want to learn about a really interesting aspect of the "first sale doctrine" and how it applies to software, you should have a look at "Vernor vs Autodesk" in the USA and compare it to "Oracle vs UsedSoft" in the EU. Basically, in the USA the courts determined that if a company sells you software, but in their terms & conditions claim that they are merely granting you a license, then you can't resell the softw…

I think that this distinction is largely becoming irrelevant in the cloud era. Most software is sold / licensed on a term basis these days, and honestly the industry is healthier as a result. App stores are really the only remaining vestige of "buy once, use forever" -- and I'd guess that the EU isn't interested in going after it thanks to the small dollar amount and huge number of companies who benefit. Software was…

The industry is healthier as a result? I question that rather strong claim.

Consider as a counter point, I can still pull up cartridge based games on my old consoles and they work. Rather well, actually.

Now, that does speak only to the "health" of the software I run. It also ignores the implications of this world we are in where everything is fully connected to the internet.

To your point of healthier for the developers. Do you have numbers to back that up? Certainly gave companies a more reliable cash flow that are licensing software. But... conversely, this gave consumers a burden in the form of constant cash flow out.

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