From colonial times, property rights have been a central pillar of American life and law. Patents, the ability to protect invention and innovation has been central driver of the development of the American economy. However, what are the frontiers of patent ownership, and what are the rights of parties who purchase products and then seek to offer them for resale? A small West Virginia company called Impression Products now finds itself in a contest with Lexmark International, a $3.7 billion printer and printer supply manufacturer. The case, that has worked its way all the way up to the Supreme Court, involves the legal right of Impression Products to remake toner cartridges originally manufactured by Lexmark. The larger legal question is just how far can a manufacturer assert property rights on patents after the sale of its products. The outcome has never been more critical. The migration of technology business income from primarily selling hardware to selling services mounted from hardware, may cause many manufacturers to attempt to maximize income derived from downstream services sold after the initial sale of the hardware. How far downstream can the manufacturer assert their patent rights? How far down the supply chain do patents become “exhausted”?
In this podcast, Eric Smith of Impression Products describes his experiences to date, why his company’s struggle has implications far beyond ink and toner, and how the upcoming decision by the Supreme Court could impact many industries from auto parts to IT and UC. The ruling could potentially impact many ASCDI and ASCDI trading network’s family of repair, refurbishment and resale companies.
More information about the case, Impression Products, Inc. v. Lexmark International, Inc. available here http://www.scotusblog.com/case-files/cases/impression-products-inc-v-lexmark-international-inc/
Listen to the podcast: http://media.blubrry.com/telecomresellerpodcast/content.blubrry.com/telecomresellerpodcast/Impression_10_26_2016.mp3