"LG Electronics v. Quanta Computer"
Case Study LG Electronics v. Quanta Computer Exhaustion of patent rights or conditioned sale of licensed components? U.S. Supreme Court to Decide 售销件条有的件部可许是还尽穷权利专 决判的法高国美待等 Robert J. Gaybrick Morgan, Lewis & Bockius LLP Beijing, January 24, 2008 SUPREME COURT REVIEW — 卷案交移院法诉上邦联求要 卷案阅调法高 No. 06937 IN THE Supreme Court of the United States ———— QUANTA COMPUTER, INC., QUANTA COMPUTER USA, INC., QLITY COMPUTER, INC., Petitioners, v. LG ELECTRONICS, INC., Respondent. ———— On Writ of Certiorari to the United States Court of Appeals for the Federal Circuit ———— 2 PARTIES TO THE PROCEEDING 本案当事人 Petitioners: 求人（9家公司） 请 Quanta Computer, Inc., Quanta Computer USA, Inc., and QLity Computer, Inc. Bizcom Electronics, Inc. Compal Electronics, Inc. Everex Systems, Inc. First International Computer, Inc., First International Computer of America, Inc., and Sceptre Technologies, Inc. Respondent:答 复 人 LG Electronics, Inc. 3 WIDESPREAD INTEREST 益利方多及涉 PATENT EXHAUSTION CASE TO BE HEARD ON WEDNESDAY The U.S. Supreme Court will hear arguments on Wednesday in Quanta Computer, Inc. v. LG Electronics, Inc. The case presents a question of patent "exhaustion" – i.e., whether patent rights in an invention can exist with respect downstream purchasers after the invention has been sold or licensed to a first party. IPO filed an amicus brief in December arguing that a patent owner's ability to grant limited licenses is a right inherent in the patent grant, and conditional licensing of IP is a common practice in many industries. – 审听将院法高最国美，三周本 案一尽穷权利专理审将三周本 Quanta Computer, Inc. v. LG Electronics, Inc. 利专出提案本。论辩方双案一 “ ” 发该，后方一第给可许者或售销被明发件一当，即，题问的 尽穷 权 法 了交提月 在织组 。在存然仍否是者买购游下于对权利专的明 IPO 12 “ ” 固的中权利专是力能的可许性制限予给人权利专称， 状护辩友之庭 。可许件条附的权产识知在存泛广经已内业行多许在，利权有 IPO DAILY NEWS, JANUARY 14, 2008 4 WIDESPREAD INTEREST 益利方多及涉 SUPREME COURT HEARS PATENT EXHAUSTION CASE Yesterday the Supreme Court heard oral argument in the Quanta Computer v. LG Electronics case, on the patent exhaustion doctrine. The case was the subject of lively questioning by Chief Justice ROBERTS and Justices BREYER and SCALIA and others. Deputy Solicitor General HUNGAR, on behalf of the Bush Administration, supported Quanta, the patent challenger. Click here for the 69page transcript. 了审听院法高最天昨 件案尽穷权利专理审院法高最 Quanta Computer v. LG Electronics 。论辩头口的则原尽穷权利专关有案一 Roberts 布表代而，问提频频人等 、 官法大和 Breyer 官法大席首 Scalia 此击点。方一 Hungar 人战挑利专持支则 长部法司副的府政什 Quanta 69 。录记庭法的页 得获可处 IPO DAILY NEWS, JANUARY 18, 2008 5 WIDESPREAD INTEREST 益利方多及涉 • Supreme Court accepts about 150 cases per year out of thousands of petitions; 选仅院法高最中求请件千数从年每 约大取 150 ；理审行进件 • Parties interested in an issue on appeal may request permission to file an amicus curiae brief (friend of the court brief) 可方关相益利的益利题问某及涉中案诉上在； ；状护辩友之庭法交提许允院法求请以 – Twenty seven parties filed amicus curiae briefs in this appeal ； 有共一中案诉上本 27 ；状护辩友之庭法了交提人事当个 • New York Times and Wall Street Journal published several articles on this appeal 就报日街尔华和报时约纽； ；章文篇数了表发此 6 WIDESPREAD INTEREST 益利方多及涉 • Amicus briefs in support of Quanta’s – 9 持支， Quanta辩友之庭法的方一 状护 —9 份 • Brief for the Antitrust Institute in Support of Petitioner • Brief for the Automotive Engine Rebuilders Association, the Automotive Parts Remanufacturers Association, and the International Imaging Technology Council in Support of Petitioner • Brief for the International Business Machines Corporation in Support of Petitioner • Brief for the Consumers Union, the Electronic Frontier Foundation, and Public Knowledge in Support of Petitioner • Brief for GenProbe Incorporated in Support of Petitioner • Brief for the United States in Support of Petitioner • Brief for Dell, Inc., HewlettPackard, Co., Cisco Systems, Inc., and Ebay, Inc., in Support of Petitioner • Brief for the Computer & Communications Industry Association in Support of Petitioner • Brief for the NCR Corporation in Support of Petitioner 7 WIDESPREAD INTEREST 益利方多及涉 • Amicus briefs in support of LGE’s – 14 持支 ； LGE 状护辩友之庭法的方一 14 份 • Brief for MPEG LA LLC in Support of Respondents • Brief for Qualcomm Inc in Support of Respondents • Brief for Technology Properties in Support of Respondent • Brief for Ibiquity Digital Corporation in Support of Respondents • Brief for Yahoo! in Support of Respondents • Brief for Interdigital Communications, LLC and Tessera, Inc. in Support of Respondents • Brief for Rembrandt IP Management, LL in Support of Respondent • Brief for the Intellectual Property Owners Association in Support of Respondent • Brief for Various Law Professors in Support of Respondent • Brief for Aerotel, LTD., Aerotel USA, Inc., and Aerotel USA, LLC in Support of Respondent • Brief for Papst Licensing GMBH & Co. KG in Support of Respondent • Brief for the American Intellectual Property Law Association in Support of Respondent • Brief for Amberwave Systems Corp., in Support of Respondent • Brief for WiLan, Inc., in Support of Respondent 8 WIDESPREAD INTEREST 益利方多及涉 Amicus briefs in support of neither party – 4 双持支不； 状护辩友之庭法的方 – 4 份 • Brief for Croplife International in Support of Neither Party • Brief for the Biotechnology Industry Organization in Support of Neither Party • Brief for the American Seed Trade Organization in Support of Neither Party • Brief for the Licensing Executives Society (USA and Canada) in in Support of Neither Party 9 BACKGROUND 景背 • LG Electronics purchased a portfolio of patents from a computer manufacturer, Wang Laboratories LGE 计从 ； 商造制机算 Wang Laboratories ；合组利专了买购里那 • In 199899, LGE initiated a license program focused on computer system makers based on the analysis that the patents were essential to the structure and operation of personal computers, including notebooks and desktops. LGE 个的内在脑电式台和本记笔括包于对合组利专该析分 对针间期年 在此据，要重关至作操和构结的脑电人 9899 ；目项可许其动启商造制统系机算计 • Many licensing targets responded that the proper license target was Intel because Intel’s processors and chipsets embodied the patented technology 为认标目可许多许； 片芯和器理处的尔特英为因，标目可许的适合是才尔特英 ；术技利专该了括包组 10 BACKGROUND 景背 • Intel’s component customers requested Intel to resolve the issue ； ；题问个这决解尔特英求要户用件部尔特英 • In 1999, Intel approached LGE with the proposal that the two companies enter into a cross license that included the Wang patents 1999 触接尔特英，年 ； LGE 括包成达方双议提， W ang 在利专 ；可许叉交的内 • Of concern to LGE was that in licensing the Wang patents to Intel, LGE maintained its right to license and, if necessary, enforce its patents against computer system makers LGE 将使即，是虑考的 ； Wang 时要必且并，利权的可许其留保然仍 ，尔特英给可许利专LGE ；利专其施实商造制统系机算计对针 – Royalty base comprising computer systems much larger than a base limited to value of Intel’s processors and chipsets 许的统系机算计括包； ；准基的值价组片芯和器理处尔特英于限于高远准基费可 – Avoid exhaustion of patent rights and implied license to Intel’s component customers 许示默户用件部尔特英予给和尽穷权利专免避； ；可 11 INTEL – LGE AGREEMENT 尔特英LGE 议协 • Intel and LGE entered into a comprehesive cross license agreement that included many LGE patents in addition to the Wang patents 英； LGE 了除，议协可许叉交的面全成达 和尔特 Wang ；利专多许的 自 LGE 括包还外利专 • The transaction is embodied in: 交该 为 – Patent Cross License Agreement ；议协可许叉交利专； – License Agreement ；议协可许； 12 INTEL – LGE AGREEMENT LGE 尔特英 议协 • INTEL AND LG ELECTRONICS ANNOUNCE LONGTERM BUSINESS AGREEMENT 和尔特英；LG 电 ；议协作合期长成达布 • SANTA CLARA, Calif., August 28, 2000 Intel Corporation and LG Electronics Inc. (LGE) today announced the two companies have signed a longterm business agreement involving product sales, technology and intellectual property. Financial terms were not disclosed. 2000 8 28 和司 尔特英 SANTA CLARA, Calif., ，日 月 年 LG 经已方双，布 司 电 是 ，议协作合期长的权产识知和术技、售销 产括包 。 布 有 • Under terms of the agreement LG Electronics will become a beta customer for Intel microprocessor and chipset products and will receive advance information on Intel microprocessor and chipset products as well as substantial technical, sales and marketing support for computer systems based on Intel microprocessor and chipset products. … 用 的 产组片芯和器理处 尔特英为成将 电 LG ， 条议协该据 器理处 尔特英于基及以， 的 产组片芯和器理处 尔特英 提将且并，户 等等；持支 和售销、术技 实的统系机算计的 产组片芯和 . . . . . . . . . . • The companies also entered into a patent crosslicense agreement. Specific terms of the agreement are confidential but the license agreement provides for an undisclosed payment from Intel to LGE. 公司 成 利交叉 可 专 达还 议协该 议协 许。 的具 体 款保密，但是 条 议协 许该可 定英特尔要向LGE付 ，付 情 不予公 。 费 费 13 INTEL LGE AGREEMENT 尔特英 LGE 议协 The Master Agreement states: 主 可 议协 许 : “LGE‘s grant of a license to Intel . . . shall not create any express or implied license under LGE’s patents to computer system makers that combine Intel Integrated Circuits with other non Intel components to manufacture . . . computers.” LGE 英特尔的 可…不 将英特尔 对 许 对 集成 路与其它非英特尔部件 合以制造… 算 电 组 计 机的 算机系 生 商 生任何 于LGE 利的 计 产 产 统 关 专 明示或者默示 可。 许 14 THE INTEL AGREEMENT 议协尔特英 The Patent Cross License Agreement provides: 本 利交叉 可专 议协 许 提供： “3.8 No Implied Licenses or Other Rights. No other rights are granted hereunder, by implication, estoppel, statute or otherwise, except as expressly provided herein. Specifically . . . nothing in the licenses granted hereunder or otherwise contained in this Agreement shall expressly or by implication, estoppel or otherwise give either party any right to license the other party‘s Patents to others, and (b) no waiver, license or immunity is granted by either party hereto directly or by implication, estoppel or otherwise to any third party for the combination by a third party of Licensed Products of either party with items, components, or the like acquired (directly or indirectly) from sources other than a party hereto, or for the use, import, offer for sale or sale of such combination； 3.8 无默示 可或其它 利. 除本 许 中明确 定外，本 权 在此不以默示、禁止反言、 定 议协 议协 或其他任何方式授予其它任何 利。特 是…本 在此授予的任何 利或者以其它方式 权 议协 权 包含在本 内的任何 利均不得以明示方式或者以默示、禁止反言或者其它方式 予任 权 议协 一方将另一方的 利 可 他人的 利，并且（b）本 给 许 专 任一方不得直接或者以默示、禁止 权 议协 反言或其它任何方式 予任何第三方弃 （放弃 利 ）、（ 利） 可或者（ 利侵 给 权 ） 许 专 权 专 专 诉权 豁免，第三方将本 任何一方的 可 品与（直接或 接）从非本 议协 一方当事人的来源 产 许 议协 间 所 得的物品、部件等 合，或者将 获 组 合使用、 口、 售或者 售; 组该 销 销 许 进 15 INTEL LGE AGREEMENT LGE 尔特英 议协 • The Master Agreement also included the written wording of a letter that Intel was required to provide its customers；主 还议协包括要求英特尔将下列内容以 面信函的 形式提供 其用 ： 给 户 “It has recently come to Intel‘s attention that LG Electronics (LGE) has contacted you and claimed that certain of your products infringe certain of LGE’s patents. I am writing to notify you that Intel recently obtained a broad patent license from LGE. This patent license ensures that any Intel product that you purchase is licensed by LGE and thus does not infringe any patent held by LGE or any of LGE‘s subsidiaries. “英 特尔最近注意到LG 子（LGE）已 与 方 系并且声明， 方的某 品侵犯了LGE的 电 经 产 某 利。我 专 在 面通知 方，英特尔最近从LGE那里 得了广范 利 可。 获 许 专 专该 利 许 可确保 方 买购 的任何英特尔 品均 得LGE 可，因此不会侵犯LGE或者LGE子公 产 获 许 司的任何 利。 专 This patent license is consistent with Intel‘s policy of standing behind its products. Please note however that while the patent license that LGE granted to Intel covers Intel’s products, it does not extend, expressly or by implication, to any product that you make by combining an Intel product with any nonIntel product.“ 本 利 可与英 许 专 特尔 品代表的立 政策一致。但是， 注意，LGE 予英特尔的 利 可 覆盖英特 产 请 给 仅 许 专 尔的 品，而不以明示或者默示方式延及 方通 将任何英特尔 品与任何非英特尔 产 产 产 品 合所制造的任何 品。” 组 产 16 INTEL – LGE AGREEMENT LGE 尔特英 议协 • The theory behind LGE’s license program was that only patents having claims fully met by the Intel components are exhausted by the license to Intel LGE 全 求要利权其仅，是论理的后 目项可许 ； 件部尔特英 ；尽穷 可许的尔特英予给被才利专的 • Patents with claims that are met only by products combining Intel components with components of unlicensed third parties are not subject to exhaustion but only to a potential implied license 利权其； 的 产的成而合组件部的方三第可许 件部尔特英被仅求要 ；尽穷权利专为可许示默的在 于对仅是 ，尽穷被有 利专 • Intel’s letter to its component customers explaining the limitations in the Intel license eliminated any basis for an implied license because the customers were informed of the scope of Intel’s license 尔特英； 示默 产了除 的制限议协可许尔特英该 解户用件部其 。 的议协可许尔特英该户用了知 为因，基 的可许 17 INTEL – LGE AGREEMENT LGE 尔特英 议协 • LGE’s legal analysis was supported by the law of the Federal Circuit that: 了持支 法的院法 LGE 合的 析分法 : – exhaustion requires the sale of a patented product, i.e., a product that meets each limitation of the claims of the patent, 专 ，售销的 产利专求要尽穷权利 要利权利专合 是 产利专 ； 产的制限个一每的求 – sales of licensed components may be subjected to express conditions limiting the scope of a license absent any conditions impermissible under the antitrust laws, and ； 在存 能可售销的件部可许，件条 的许允 法 可许 且并；制限的件条示明的 – an implied license can exist only if the purchaser of a component has a basis to believe that it can use the components free of claims of a patentee 用使以可 为认据 有者买购件部在仅； 。可许示默在存可才，下 的件部的制限求要利权人权利专 18 BACKGROUND 景背 • Following the Intel agreement, LGE offered licenses to many of the system manufacturers that had received a letter from Intel explaining the limitation on Intel’s license 可许其尔特英 对 ，后议协可许尔特英 ； LGE ；约要可许出提商造制统系多许的 解制限 • Some system manufacturers entered into licenses, but others, such as Quanta, argued that with respect to Intel components LGE’s patent rights under the Wang patents were exhausted as a result of the Intel license 系 一； 司 LGE 一 是 ，议协可许成达 商造制统 Quanta 了 可许尔特英，件部尔特英于对，称辩则 Wang 。尽穷经已权利专LGE 的下利专 19 THE LITIGATION 讼诉 • LGE asserted five of the Wang patents and another patent against the system manufacturers；LGE向系 制 统 造商主 Wang 利的其中5个和另一个 利； 专 专 • After several years of litigation, but before trial, the district court judge granted summary judgment against LGE, holding: 经 几年的 诉 但是在 判之前，地区法院 审 法官 LGE 出 易 判的决定，判决： 对 发 审 – LGE could not enforce the apparatus claims of the Wang patents licensed to Intel because LGE’s rights were “exhausted” by the license granted to Intel；LGE不能 施其 可 英特尔的Wang 实 给 许 专 利中的 权 利要求，因 许该为 可使LGE的 利“ 尽”; 穷 权 – The method claims of those patents were not exhausted, but were not infringed； 些 专 这 利中的方法 权 利要求没有 穷 尽，但是没 有被侵 ; 权 20 THE LITIGATION 讼诉 • LGE appealed to the Court of Appeals for the Federal Circuit, which held: LGE 诉上 决 院法该，院法诉上 – There was no exhaustion of the patent rights LGE was asserting because Intel’s components did not meet all of the limitations of the asserted claims and, therefore, were not “patented products.”LGE 尔特英为因，尽穷有 权利专的 有 件部的 ； 产利专 是 并此因，件条 限部全的中求要利权 “ ” – The license to Intel was conditional and LGE effectively reserved the right to assert its claims against system makers ，可许件条附是可许尔特英； LGE 有 商造制统系 其对针其了留保 ；利权的利专 – The district court judge correctly held that method claims cannot be exhausted and that the notice letter from Intel precluded any implied license to use Intel’s components in combination with those of third party free of LGE’s patents ； 是决 下 的官法院法 的 1. 知 的尔特英 ；尽穷有 求要利权法方 2. 件部尔特英 用使了除 及涉 LGE 示默 的合组成构 件部尔特英 的利专 ; 可许 – That some of the district court’s claim constructions and all of its not infringement rulings were incorrect; 的有 和 解求要利权 一的院法 是决 权 ；的 – Case remanded to the district court for trial 发件案将； 理审 重院法 ; 21 THE LITIGATION 讼诉 • Quanta petitioned for review of the Federal Circuit’s decision by the Supreme Court Quanta ； 审院法高最求请 ；决 的院法 – Review is discretionary with only a small percentage of petitions being granted 审该 许准仅， 决 自法高 求请份部一 ; – Supreme Court requested the Solicitor General to provide a recommendation on whether the Court should hear the case 高； 提长部法司副请法 案此理审当 法高否是，议 ; – Solicitor General supported Quanta’s petition持支长部法司副； Quanta 求请的 ; – Court granted the petition and argument was held on January 16, 2008 在且并，求请个这了许准法高； 2008 1 月 年 16 双取听日 论辩方 ; – Decision will be rendered by July 1, 2008在将法高； 2008 7 月 年 1 决 出 日 ; 22 QUESTION PRESENTED ON APPEAL 上 提出的 时诉 题问 Whether the Federal Circuit erred by holding that respondent's patent rights were not exhausted by its license agreement with Intel Corporation and Intel's subsequent sale of product under the license to petitioners. 邦巡回法院是否 在判决： 答 辩 人的 利 并没有因 答 人与英特尔公司 权 专 辩 为 了 可 并且英特尔将 议协 许 可 下的 议协 许该 产 品后 售 请给 销 求人而 尽。 穷 23 PATENTS UNDER REVIEW 利专的查审 • LGE has dismissed some of its patents so the patents on appeal are the systems and methods patents: LGE撤掉部分 利，因此上 专 为 专 时诉的 利 系 和方法 利： 统 专 – USP 5,077,733 – USP 4,939,641 – USP 5,379,379 24 USP 5,077,733 • The '733 patent claims at issue (claims 1519) are method claims. All involve methods for controlling a peripheral component's use of a bus shared by multiple devices, to prevent one device from hogging the bus by limiting each device's time on the bus. • ‘733 利涉及方法 利要求1519，涉及用于控制 专 权 外 部件 由多个装置共用的 对 的使用，通 限制每个装置在 上的 来防止一个装置 间时 致 扭曲。 25 USP 5,077,733 15. A method for determining priority of access to a bus among a set of devices coupled to the bus, each device being represented for priority purposes by a node in a group of nodes and each node having a priority relative to a single node currently having the highest priority, the method comprising the steps of: receiving an access request in a node from a represented device; determining whether any node with a higher priority has received an access request; if no such node has received an access request, permitting the device to access the bus; counting a number of accesses by the device to the bus; and in response to predetermined number of accesses to the bus, giving another node the highest priority. 26 ‘733 Patent – “Set Of Devices Coupled To The Bus” And “Receiving” And “Counting” Circuitry 一 与 连线总 组 接的装置，接收和 算 路 电 计 27 Accused System The External PCI Devices “Coupled To The Bus” And “The Bus” Are Outside The Chipset “ 部外 的接连线总与 统系诉被 ” PCI “ ” 面外组片芯在设 线总 和置装 28 For Each External PCI Device, The “Receiving” And “Counting” Steps Are Performed Outside The Chipset 部外个每于对 PCI骤步 算计 和 收接 现实部外组片芯在，置装 “ ” “ ” 29 USP 4,939,641 • The '641 patent claims at issue (claims 1, 59, 14) are all system claims for ensuring that outdated data from a computer's main memory are not used by a component requesting data. • ‘641 利涉及的 利要求1，59和14，均是用于确 专 权 保 算机主内存的 计 数据不 需求数据的部件 时 为 所使用的系 利要求。 权统 30 USP 4,939,641 14. In a data processing system comprising at least one central processing unit having a cache memory coupled to a system memory through a system bus, the system bus including signal lines for conveying, during bus cycles, address information and data units associated with addresses between the system memory and other bus connections coupled to the system bus, the cache memory comprising: means for monitoring bus transactions occurring on the system bus for determining if a bus transaction occurring during a current bus cycle is an operation initiated by another bus connection that reads one or more data units from an address of the system memory; 31 USP 4,939,641 means for detecting if the address is associated with one or more data units already stored within the cache memory; and means having an input coupled to said detecting means and responsive thereto and further having an output coupled to the system bus for asserting thereon during the current bus cycle a HOLD signal line, the assertion of the HOLD signal line indicating to the bus connection initiating the read operation that at least one of the data units associated with the address is stored within the cache memory and that the cache memory will, if the data unit is determined to be marked as dirty within the cache memory, transmit the stored data unit to the bus connection during a subsequent bus cycle. 32 ‘641 Patent – “A System Memory,” “A System Bus,” And “Other Bus Connections” 件接连线总他其和线总统系，存内统系 33 Accused System – “System Memory,” “System Bus,” And “Other Bus Connections” Are Outside The Chipset “ ” “ ” “ 部外组片芯在设 件接连线总它其 和 线总统系 、 存内统系 统系诉被 ” “system bus” “线总统系 ” “system memory” “ 存内统系 ” “other bus connections” “件接连线总它其 ” 34 USP 5,379,379 • The '379 patent claims at issue (claims 1, 7, 22 23) include system and method claims. These claims involve sequencing the processing of data to prevent access to outdated data in the computer's memory. • ‘379 利涉及的 利要求（1，7，2223）包括系 专 权 统 和方法 利要求。 些 利要求包括 置数据 权 权 这 处 理的先后速度，以防止 理到 算机内存中的 处 计 时 数据。 35 USP 5,379,379 1. A memory control unit for controlling a main system memory of a data processing system, the main system memory being comprised of at least one memory unit, comprising: first interface means for coupling said memory control unit to the at least one memory unit of the main system memory; second interface means for coupling said memory control unit to a system bus having signal lines for expressing information units, including memory read and write requests, the system bus including a system address bus; means, coupled to said first and to said second interface means and responsive to a write request from said system bus, for executing the write request by storing one or more information units within a memory unit at an address specified by the system address bus, said write request executing means comprising write request receiving and buffer means having a plurality of storage locations capable of storing a plurality of received write requests and associated write addresses prior to execution of the write requests; 36 USP 5,379,379 means, coupled to said first and to said second interface means and responsive to a read request from said system bus, for executing the read request by reading one or more information units from a memory unit at a location specified by the system address bus, said read request executing means comprising read request receiving and buffer means having a plurality of storage locations capable of storing a plurality of received read requests and associated read addresses prior to execution of the read requests; said memory control unit further comprising: means, having a first input coupled to said write buffer means and a second input coupled to said read request receiving means, for comparing a received read address to write addresses stored in said write address buffer means, said comparing means having an output signal for indicating, when asserted, an occurrence of the reception of a read address within a predetermined range of addresses of one of said stored write addresses; and means for controlling the execution of read and write requests, said controlling means being coupled to said comparing means output signal and being responsive to said comparing means output signal not being asserted for causing an execution of all buffered read requests before any buffered write requests, said controlling means further being responsive to said comparing means output signal being asserted for first causing an execution of only those buffered read requests which precede a buffered read request which caused the assertion of said comparing means output signal and then causing an execution of buffered write requests. 37 ‘379 Patent – “Main System Memory” And “System Bus” “ ” “ 线总统系 和 存内统系主 ” 38 Accused System – “Main System Memory” And “System Bus” Are Outside The Chipset 统系诉被 —“ ” “ 部外组片芯于位 线总统系 和 存内统系主 ” “system bus” “线总统系 ” “main system memory” “存内统系主 ” 39 PETITIONERS’ CONTENTIONS 点焦论辩的人求请 The "patent exhaustion“ doctrine is triggered by any authorized sale of the patented article, or by the authorized sale of any "uncompleted article which, because it embodies essential features of his patented invention, is within the protection of his patent [and is] destined ... to be finished by the purchaser in conformity to the patent." United States v. Univis Lens Co., 316 U.S. 241, 25051 (1942). 特 关明发利专 者或售销权 的 产利专 售销权 的 件部 成 的 护保权利专 而“ ” “ ” 其将要是 件部 成 该买购者买购，则原 尽穷利专 发 “ ” 。 一利专 而从 United States v. Univis Lens 成 Co., 316 U.S. 241, 25051 (1942). 40 PETITIONERS’ CONTENTIONS 点焦论辩的人求请 • Quanta argues that: Quanta 论辩 – LGE is trying to double collect its royalty because the components are licensed (royalty from Intel) and are simply being used for their intended technical purposes LGE 费可许尔特英 尔特英给可许件部将为因，费可许取 重双 ； ；费可许取 要而的目术技的期 其于用件部将为因仅仅且并 – Intel components embody the essential features of the claims 括包件部尔特英； ； 特术技 关的求要利权 – No basis for collecting a second royalty from the system manufacturers 有 ； 取 里那商造制统系从理 ；费可许 – Notice letter was ineffective because there was no acceptance by the system manufacturers of the limitations on use and because the patent rights were exhausted prior to the sale of the components 知 ； 商造制统系为因， ；尽穷经已权利专 售销件部在且而制限用使 这 接有 – Method claims can be exhausted because they are directed to the use of the licensed components and purchasers of licensed components have the right to use them for their intended technical purpose 为因，尽穷被以可求要利权法方； 技期 的件部 这 有 者买购的件部可许且并用 的件部可许于关是就 ；利权的件部 使的目术 41 RESPONDENT’S CONTENTIONS 点焦论辩的人复答 • Exhaustion does not apply to patents claiming systems composed of Intel components and nonIntel components 要于用适 尽穷利权； ；利专的统系的成组 件部尔特英 和件部尔特英 护保求 • Intel’s license is subject to express conditions and Intel cannot pass on to its customers broader rights than given Intel under the license agreement 尔特英且并，制限的件条示明 可许的尔特英； 给 ； 利权的尔特英予给议协可许该 能 利权的户用其 • Univis Lens is precedent directed to patent misuse not patent exhaustion as it concerned postsale controls on the use of a patented product, that is a product that met all limitations of the patent claims Univis Lens 因， 的尽穷权利专 而用 权利专是 ； 要利权利专 是 产利专而，制 后售销的用使 产利专及涉 为 ； 产的 限部全求 • There is no double royalty because Intel did not pay a royalty for Quanta’s computer systems 为有 尔特英为因，费可许重双有 ； Quanta ；费可许 支统系机算计的 42 POLICY CONSIDERATIONS 虑考策政 • System makers tend to support Quanta’s positions 商造制统系； 于 持支 Quanta 的 ； • Licensing companies favor LGE’s positions 成 司 可许； LGE 的 ； • Some large system manufacturers with large patent portfolios have internal conflicts on which position to take 一； 大的合组利专 大有 取 该 于对商造制统系 部内有 – Business unit wants a broad interpretation of patent exhaustion and will pressure component makers to settle disputes like the one between LGE and Quanta 部业商； 商造制件部对将且并， 解的 有尽穷利专对 施 对其使 以力 LGE Quanta ；解和行进 的 和 于 – Corporate licensing departments regularly use the LGE licensing strategy to maximize licensing revenue 部可许司 ； 取 LGE 可许的 而 ； 大最益 可许其使 43 POLICY CONSIDERATIONS 虑考策政 • Component makers should favor LGE’s position 支当 商造制件部； 持 LGE ； – Many component makers already disclaim by contract any indemnity obligation for combinations of their components with those of third parties 经已商造制件部多许； 合 构 件部方三第 件部其了 ； 的合组成 – Allows component maker to license from the patent owner without taking on financial obligation to cover the system products of their customers 从 而，可许得获里那人权利专 商造制件部许允； 户用其为 ； 经 产统系的 • System makers favor Quanta position because they can try to push license obligation to the supplier of components embodying essential feature of the invention ， 的 持支商造制统系；Quanta 为因 以可 可许将 件部的 特 关明发有 件部其给 ；商 44 PREDICTION 测预 • Support of antitrust bar for Quanta’s position should not influence the Court because no allegation of antitrust violation by LGE’s licensing program 于处； Quanta 当 者持支 的 为因，决 院法 LGE 可许的 ；法 有 目项 • Support for LGE’s positions by the American Intellectual Property Law Association (AIPLA) and Intellectual Property Owners Association (IPO), which include as members both licensing companies and system makers, should influence the court LGE 国美括包者持支的 ； 可许括包 成其， 协人有 权产识知和 协法权产识知 ； 成造决 院法对 当 ，商造制统系和司 45 PREDICTION 测预 • Solicitor General’s position that LGE’s patent rights are exhausted under the Univis Lens precedent will influence the Court 于关长部法司副； LGE 据 权利专的 Univis Lens 的尽穷被而案一 ；决 院法 • Univis Lens, which focuses on what are the “essential” features of the invention, causes exhaustion to be highly subjective as judge (equitable remedy) must determine which features are essential and which are not 在点 ； 的 特 关 明发是 什于 “ ” Univis Lens 尽穷利权得使案一 官法为因， 的 特 必 ；是 ，的 关是 – Patent law holds that it is essential that all claim elements be found in an accused device in order to find direct infringement ； 发为， 法利专 诉被在是 关，权 接 中 权部全 ； 要求要利 46 PREDICTION 测预 • Accepting LGE’s position is less disruptive to established licensing practices 接； LGE 经已使 能 的 ； 分成造 实可许 • Intel’s notice to its customers of limits to its license should influence the court that a conditional sale existed 当 知 制限可许的户用其对尔特英； 法 ；售销件条附在存 为因，院 • But Supreme Court reversed CAFC three times in less than two years, i.e., KSR, MedImmune, eBay. 在是 三院法高最，里间时的年 CAFC , 即，决 的 KSR, MedImmune eBay ； 和 47 PREDICTION 测预 ? • Materials related to this case are available at: 关有案本 得获处此从可 – http://www.morganlewis.com/go/Quanta 48 Case Study LG Electronics v. Quanta Computer Exhaustion of patent rights or conditioned sale of licensed components? U.S. Supreme Court to Decide 售销件条有的件部可许是还尽穷权利专 决判的法高国美待等 Robert J. Gaybrick Morgan, Lewis & Bockius LLP Beijing, January 24, 2008