There is a global race to develop self-driving cars. Companies are building technology and IP portfolios, trying to make sure that they have the technical and legal ability to grab a piece of the expected $7 trillion dollar opportunity in advanced mobility. But what divides the winners from the losers won’t just be the technology. It will also be the business models they pursue—driven in part by three key legal developments happening now.
Lexmark, Kirtsaeng, and the First Sale Doctrine
Earlier this year, the Supreme Court held in Impression Products, Inc. v. Lexmark International, Inc. that the authorized sale of a patented product, anywhere in the world, exhausts the patent holder’s rights in that product. In that case, Impression Products bought used Lexmark toner cartridges abroad, refilled them, and then imported them for sale in the United States. The Court held that Lexmark’s patent rights were exhausted by the sale, despite the clear “restricted license” language that Lexmark placed on the cartridges. In evaluating the effect of Lexmark’s restricted license, the Court said:
