Post-Sale Restrictions

The attempt by patent owners using 'label licenses' to deprive consumers of their right to use, repair and resell the products they own.

The enforceability of "single use" and "not for resale" labels on patented products in the light of "patent exhaustion" doctrine which entitles a consumer to use, repair, or resell patented products that they have purchased.

Consumers often face "single use only" and "not for resale" labels on patented products, interfering with legitimate after markets for parts and service. Lexmark has used "single use only" labels to limit the market for refilled toner cartridges. Similarly, "not for resale" labels could interfere with used and refurbished product sales on.

The Supreme Court is likely to prohibit patent owners from using patent infringement suits to enforce these kinds of post-sale use restrictions on the products they sell.