Digital Exhaustion of Patent Law: A Comparative Study of India and the United States

The extent of control over the use, resale, or distribution of the patented product that a patent holder can exercise after the first authorised sale of the patented product is decided by the doctrine of patent exhaustion. With the rapid digitisation of goods and services, the traditional understanding of this doctrine is confronted with challenges never seen before. This paper undertakes a comparative study of the patent exhaustion system in India and the United States, in particular, its application to digital goods and technologies. The article looks into the legislative setups, judicial developments and policy aspects of both jurisdictions. It contends that although India has embraced an international exhaustion model that is, in some ways, more friendly to the consumer, it still lacks a comprehensive judicial and legislative structure to deal with digital exhaustion. Based on the United States Supreme Court’s monumental decision in Impression Products Inc. v Lexmark International Inc., the article suggests specific reforms in India’s patent exhaustion system.