Patriot Scientific

Patriot Scientific Reports Profitable Quarter; Q3 FY '08 Net Income $6.3 Million or $0.02 Basic and Diluted Earnings Per Share.
in response to Mark4321's message

in an 'artful way'..........I hope he did....... :-)

"Patent holders possess a valuable right. It is the right to prevent others from using the patent holder's product without permission. Patent holders have the exclusive right to sell, or license, the patented product to others ("first tier purchasers"). But does a patent holder have a "patent" right to prevent those who purchase or license use of a product made by the first tier purchaser and derived in part from the patent ("downstream purchasers") from selling a product the downstream purchaser creates using the first tier purchaser's product? No, according to the United States Supreme Court in Quanta Computer, Inc. v. LG Electronics, Inc. The Court's ruling underscores the continued viability of the longstanding doctrine of patent exhaustion (also known as the "first sale doctrine"), as well as the importance of using only carefully drafted contracts in connection with the transfer and use of patented products.

In short, the Court held that downstream purchasers can buy patented goods and resell them with no "patent strings" attached. However, the Court hinted that this area may be prime territory for artful legal drafting that could leave "contract strings" intact well beyond the first tier purchaser"

Downstream without a Paddle? Patent Exhaustion - Publications - Ward and Smith P.A.

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d2006s
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