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" ... Overturning a 25-year-old precedent of the Court of Appeals for the Federal Circuit, the Supreme Court agreed with Lexmark, holding that all authorized sales of a patented technology trigger exhaustion, even if the sale is made subject to express usage limitations. Additionally, the Court held that Lexmark exhausted its patent rights when it sold its cartridges, subject to the same restrictions, in foreign markets. Although Lexmark can still restrict use of its patented technology through contract – rather than patent – lawsuits, that would be a dead-end against Impression, who was located several steps down the supply chain, and thus not in “privity” with Lexmark. ... "
" ... Up until the 1940s, victims of defective products had limited recourse against the products’ manufacturers since the laws of negligence require breach of a duty of care and privity between the parties, both of which can be difficult to prove or may not exist in the relationship between manufacturer and consumer. In response to the injustice of such victims having to shoulder the burden of injury without a remedy, the laws of product liability emerged through a progressive series of judicial decisions and legislative acts. Under such laws, manufacturers must actively anticipate and prevent defects in the products they produce and sell, warn consumers of dangers, and insure against the risk of injury to the public. From a policy perspective, manufacturers are in a better position to initially bear the costs of prevention and insurance and can pass the costs on to the public in the form of higher product prices. The question is, to what extent do product liability laws apply to trademark licensors that are not manufacturers or sellers of defective products? ... "