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Declaring a patent exhausted and not infringed is not inconsistent | 871 comments | Create New Account
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Declaring a patent exhausted and not infringed is not inconsistent
Authored by: Anonymous on Saturday, August 25 2012 @ 09:07 PM EDT
From the jury instructions:


To prevail on the defense of patent exhaustion, Apple must
prove that the following is more likely
true than not:

First, that Intel was authorized to sell the baseband chips
under the terms of the license
agreement between Samsung and Intel;

Second, that the sales were made in the United States. The
location of the sale depends on
many factors, and you may find that the sale occurred in
several places. A sale occurs
wherever the “essential activities” of the sale take place.
The essential activities include,
for example, negotiating the contract and performing
obligations under the contract; and

Third, that, if the accused products infringe, it is because
the baseband chips substantially
embody the ’516 and/or ’941 patents. The baseband chips
embody the relevant patent if
they include all the inventive aspects of the patented
device.


If the jury would have followed the instructions properly
they would have found infringement (again also based on the
instructions, since the sections concerning infringement
make no mention of exhaustion as reason for non-infringement
as far as I recall from reading the instructions) and they
would also have found exhaustion.

I think this is just a further indicator that the jury did
not follow instructions but substituted the foreman's patent
"expertise" and opinion instead.

[ Reply to This | Parent | # ]

Declaring a patent exhausted and not infringed is not inconsistent
Authored by: Anonymous on Sunday, August 26 2012 @ 09:55 AM EDT
Some have claimed that declaring a patent exhausted and declaring it not infringed is inconsistent.

Where it would be inconsistent is if something in the product apart from the baseband chips had infringed the patent.

I.e. (say) you put two baseband chips in the phone (maybe for different bands). One is an Intel chip made under license from Samsung. The other is an unlicensed knockoff. You couldn't then argue exhaustion because the intel license wouldn't extend to the knockoff. That's what the last paragraph in the juror instructions is saying.

So it could be that what the Jury meant was "yes, the patent on the chips was exhausted, no nothing else in the iDevice infringed those patents"... which is actually the crucial question even if it didn't quite match the instructions.

Its also perfectly reasonable (insofar as anything involving software patents is reasonable) to say "yes this patent is valid, but the holders haven't proven that this particular product violates it." Particularly likely with patents that sound impossibly broad from the one-line description but actually depend on lots of detailed claims.

[ Reply to This | Parent | # ]

Declaring a patent exhausted and not infringed is not inconsistent
Authored by: tknarr on Sunday, August 26 2012 @ 02:54 PM EDT

OTOH I think you could bring up other cases where the argument's been exactly the opposite: that the legal purchase of a chip outside the US does not exhaust the patent when the chip is then imported into the US. The usual cases involve grey-market goods: items and devices that're manufactured and legally sold in other countries and then imported into the United States without an explicit license to do so. If patents are exhausted then companies can't prevent those grey-market goods from being brought into the US (once the goods were legally sold the patent holder's gotten his royalty and can't claim further control over them), but if patents aren't exhausted then Samsung's claims still hold (if they didn't explicitly license Intel to manufacture those chips for sale in the US).

[ Reply to This | Parent | # ]

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