Regulatory Responses to International Patent Exhaustion
Regulatory Responses to International Patent Exhaustion in Research Handbook on Intellectual Property Exhaustion and Parallel Imports (Eds. Calboli & Lee), 2016
22 Pages Posted: 5 Jun 2017
Date Written: Jan 1, 2016
This Chapter first summarizes the argument for international exhaustion. Next it describes the doctrinal landscape in the U.S., showing how the limits of exhaustion doctrine are shaped by concerns about the proper control accompanying a patent right in future market transactions, not about the geographic scope of control. This Chapter addresses both the economic argument against international patent exhaustion and the industry-specific example of pharmaceutical patents. Arguments that rely on the benefits of geographic price discrimination fail to account for other types of price discrimination that are potentially more desirable. In terms of access to medicine, an international exhaustion rule would be superimposed upon a heavily-regulated field. This Chapter concludes by exploring how already-existent regulatory regimes might counteract a rule of international exhaustion in the industry in which its gains are least apparent and its losses potentially gravest.
Keywords: Patents, Intellectual property, Exhaustion, International trade
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