High Court overturns 100 years of patent law

The High Court has held that a US-style doctrine of “exhaustion” applies to the sale of patented products in Australia, upending the long-standing proposition that the rights of the purchaser of a patented product are, in the absence of an express contract, governed by the terms of an implied licence. The decision limits the ability of patent owners to control the use of patented products post-sale (such as printer cartridges, which were the product at issue in the case), but gives greater certainty to businesses that seek to repair and refurbish patented products.