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Conditional Sale Doesn’t Trigger Patent Exhaustion

Client Alert | 1 min read | 07.10.06

In LG Electronics, Inc. v. Bizcom Electronics, Inc. et al. , (No. 05-1261, July 7, 2006), a Federal Circuit panel affirms in part, reverses in part and vacates in part a district court's summary judgment of non-infringement in favor of third-party installers who purchase microprocessors and chipsets from Intel Corporation, which is itself authorized to sell such products under an agreement with LG Electronics (“LGE”). Under this agreement, however, Intel is required to notify its customers that combining Intel products with non-Intel products is not permitted.

In reversing the district court's holding that the system claims of LGE's asserted patents were “exhausted” by Intel's sales, the panel reasons that requiring Intel to notify its customers that they were prohibited from infringing LGE's combination patents makes both the license and subsequent sales by Intel expressly conditional and, as such, does not trigger the patent exhaustion doctrine.

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Client Alert | 7 min read | 10.27.26

New Developments in DOJ Whistleblower Policies and HHS Disclosures: Key Takeaways for General Counsel, Chief Compliance Officers, and Boards

On October 20, 2026, the U.S. Department of Justice’s (DOJ) National Fraud Enforcement Division announced a new whistleblower rewards initiative, the Fraud Whistleblower Incentive Program (WHIP). Assistant Attorney General Colin M. McDonald issued a directive earlier this month directing Division leadership to design and implement policies and programs that incentivize whistleblowers to bring forward credible information pertaining to fraud. The new WHIP incentive pays awards of $10,000 to $30,000 for qualifying tips at or around the time criminal charges are filed or unsealed, rather than years later at case resolution....