Lexmark International, Inc. v. Impression Products, Inc.
U.S. Court of Appeals2/12/2016
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*726 Opinion for the court filed by Circuit Judge TARANTO, in which Chief Judge PROST and Circuit Judges NEWMAN, LOURIE, MOORE, OâMALLEY, REYNA, WALLACH, CHEN, and STOLL join. Dissenting opinion filed by Circuit Judge DYK, in which Circuit Judge HUGHES joins. TARANTO, Circuit. Judge. Congress has declared: âExcept as otherwise provided in [the Patent Act], whoever, without authority makes, uses, offers to. sell, or sells any patented invention, within the United States or imports -into the United States any patented invention during the term of the patent therefor, infringes the patent.â 35 U.S.C. § 271 (a); see id. § 154(a) (granting patentee âright to exclude othersâ from itemized actions). The doctrine of patent exhaustion (or âfirst saleâ doctrine) addresses the circumstances in which a sale of a patented article (or' an article sufficiently embodying a patent), when the sale is made or authorized by the patentee,'confers on the buyer the âauthorityââto engage in acts involving the article, such as resale, that are infringing acts in the absence of such authority. There is nothing âotherwise provided!â on the issue in the Patent Act. In that respect, the Patent Act differs from the Copyright Act,, whose infringement, importation, and exclusive-rights provisions, 17 U.S.C. §§ 501 , 602,106, are all subject to a separate, overriding statutory provision that grants owners of certain copyrighted articles a right to sell those articles âwithout the authorityâ of the copyright holder, id. § 109(a). In this case, all of the initial sales at issue were made by the U.S. patentee, rather than by a licensee having authorization from the patentee. Some .of the initial sales were made domestically, some abroad. All of the domestic sales, and an unknown portion of the foreign sales, were accompanied- by clearly communicated restrictions on the buyerâs reuse and resale. We decided to hear this ease en banc to consider whether two decisions of this court concerning the uncodified doctrine of patent exhaustionâone decision from 1992, the other from 2001âremain sound in light of later decisions of the Supreme Court. Today we reaffirm the principles of our earlier decisions. First, we adhere to the holding of Mallinckrodt, Inc, v. Medipart, Inc., 976 F.2d 700 (Fed.Cir.1992), that a patentee, when selling a patented article subject to a.single-use/no-resale restriction that is lawful and clearly communicated to the purchaser, does not by that sale give the buyer, or downstream buyers, the resale/reuse authority that has been expressly denied. Such resale or reuse, when contrary to the known,, lawful limits on the authority conferred at the time of the original sale, remains- unauthorized and therefore remains infringing conduct under the terms of § 271. Under Supreme Court precedent, a patentee may preserve its § 271 rights through such restrictions when licensing others to make and sell patented articles; Mallinckrodt held that there is no sound legal basis for denying the same ability to the patentee that makes and sells the articles itself. We find Mallinckrodtâs principle to remain sound after the Supreme Courtâs decision in Quanta Computer, Inc. v. LG Electronics, Inc., 553 U.S. 617 , 128 S.Ct. 2109 , 170 L.Ed.2d 996 (2008), in which the Court did not have before it or address a patentee sale at all, let alone one made subject to a restriction, but a sale made by a separate manufacturer under a patentee-granted license conferring unrestricted authority to sell. Second, we adhere to the holding of Jazz Photo Corp,. v. International Trade Commân, 264 F.3d 1094 (Fed.Cir.2001), *727 that a U.S. patentee, merely-by selling or authorizing the sale of a U.S.-patented article abroad, does not authorize the buyer to import the article and sell and use it in the United States, which are infringing acts in the absence of patentee-conferred authority. Jazz Photoâs no-exhaustion ruling recognizes that foreign markets under foreign sovereign control are not equivalent to the U.S. markets under U.S. control in which a U.S. patenteeâs sale presumptively exhausts its rights in the article sold. A buyer may still rely on a foreign sale as a defense to infringement, but only by establishing an express or implied licenseâa defense separate from exhaustion, as Quanta holdsâbased on patentee communications or other circumstances of the sale. We conclude that Jazz Photoâs no-exhaustion principle remains sound after the Supreme Courtâs decision in Kirtsaeng v. John Wiley & Sons, Inc., â U.S. â, 133 S.Ct. 1351 , 185 L.Ed.2d 392 (2013), in which the Court did not address patent law or whether a foreign sale should be viewed as conferring authority to engage in otherwise-infringing domestic acts. Kirt-saeng is a copyright case holding that 17 U.S.C. § 109 (a) entitles owners of copyrighted articles to'take certain acts âwithout the authorityâ of the copyright holder. There is no counterpart to that provision in the Patent Act, under which a foreign sale is properly treated as neither conclusively nor even presumptively exhausting the U.S. patenteeâs rights in the United States. Background The relevant facts are set forth in the limited record that the parties agreed was determinative of the result. Lexmark International, Inc. makes and sells printers as well as toner cartridges for its printers. Lexmark owns a number of patents that cover its cartridges and their use. The cartridges at issue here were first sold by Lexmark, some abroad and some in the United States. Some of the foreign-sold cartridges and all of the domestically sold cartridges at issue were sold, at a discount, subject to an express single-use/no-resale restriction. Impression Products, Inc. later acquired the cartridges at issue in order to resell them in the United Statesâ the restricted ones after a third party physically modified them to enable re-use in violation of the single-use/no-resale restriction. Impression has resold the patented Lexmark cartridges at issue in the United States, and has imported those it acquired abroad. In each case, it has acted without affirmative authorization from Lexmark and, for the restricted cartridges, in violation of the express denial of authorization to engage in resale, and reuse. Impressionâs actions infringe under 35 U.S.C. § 271âunless the fact that Lexmark ini-, tially sold the cartridges constitutes the grant of authority that makes Impressionâs later resale and importation non-infringing under the doctrine of exhaustion. Whether Lexmarkâs initial sales have that effect raises two questionsâone regarding the single-use/no-resale restricted sales (wherever they, occur), the other regarding the initial foreign sales of all cartridges, whether restricted or not. A Lexmark offers buyers a choice. A buyer may purchase a âRegular Cartridgeâ at full price, in which case the buyer is not subject to any sale terms restricting reuse or resale of the cartridge. Alternatively, a buyer may purchase a âReturn Program Cartridgeâ at a discount of roughly 20 percent, .subject to a single-use/no-resale restriction: the buyer may not reuse the cartridge after the toner runs out and may not transfer it to anyone but Lexmark once it is used, ie., the buyer must âre *728 turnâ the cartridge âonlyâ to Lexmark. J.A. 2559. 1 Lexmark and Impression stipulated in this case that the reduced price âreflects the value of the property interest and use rights conveyed to the purchaser under the express terms of the conditional sale contract and conditional single-use license conferred by Lexmark.â Id. The stipulation adds that âLexmark has an express and enforceable contractual agreement with- each of its end-user customers.â J.A. 2562. And it is undisputed that all end users receive adequate notice of the restriction supporting the discounted price before they make their purchases. The distinctness of the options for buyers, which produce different revenues for Lexmark, is not just a matter of different terms of sale. It also is reflected in a microchip in the cartridges that, among other things, communicates with the printer. For a Return Program cartridge, the chip and printer, by monitoring toner levels, prevent use of a' refilled cartridge. For a Regular cartridge, the toner can be replenished' and the cartridge reused. J.A. 2559-60. âTo circumvent this technological measure,â however, âthird parties have âhackedâ Lexmarkâs microchips and created their own' âunauthorized replacementâ microchipsâ that, when installed in a Return Program cartridge, fool the printer into allowing reuse of that cartridge. J.A. 2560. It is undisputed that various companies gather spent cartridges, replace the microchips, refill and âremanufactureâ the cartridges, and sell them to resellers like Impression for marketing to consumers for use with Lexmark printers. Lexmark sells its cartridges in two channels of distribution. It sells directly to end users,'and it sells to âre-sellersâ (including wholesalers, dealers, and distributors). Lexmark offers the options of Return Program and Regular cartridges in both channels; the resellers pay less for the Return Program cartridges; and the single-use/no-resale restriction applies to the resale by resellers. J.A. 2564. There is no dispute about the adequacy of notice to resellers as well as end users or the binding nature of the Lexmark-reseller agreements. J.A. 2562-64. When Lex-mark sells its cartridges to end users, that sale is the first sale; when it sells to resellers, that sale is the first sale. When a reseller subsequently sells to end users, that sale is not the first sale. B Lexmark sued Impression, among other companies, for infringement under 35 U.S.C. § 271 . It alleged that Impression acquires spent cartridges, including some Return Program cartridges that have been altered by chip replacement and toner refilling, then sells them in the United States and, for the foreign-bought ones, imports them into the United States. 2 For a large number of patents directly covering the cartridges, Lexmark alleged direct infringement under § 271(a). For a few patents that only the end user directly infringes, Lexmark alleged that Impression is liable for contributory infringement under § 271(c). The operative complaint states the infringement allegations in a *729 single count (Count I), covering past arid continuing activity. More specifically, the infringement allegations are limited to two groups of cartridges. One group consists of Return Program cartridges that Lexmark sold in the United States under the restriction denying authority for resale and reuse. As it later made clear, Lexmark did not allege infringement by Impressionâs, actions involving Regular cartridges Lex-mark had first sold domestically. J.A. 1895-97, 2557. The second group consists of all cartridges that Lexmark sold abroad, including Return Program and Regular cartridges. It is. undisputed that Lexmark never granted anyone permission to import those cartridges into, or sell or use them in, the United States. C The litigation progressed to the point at which no defendant remained except Impression, and only the single count of infringement remained against Impression. Impression came to agree that the patents covered the cartridges it was importing and selling, and it did not dispute the validity or enforceability of the patents. -It contested liability for infringement on just one ground, namely, that Lexmark had exhausted its U.S. patent rights in the cartridges by its initial sales of them. Three defining aspects of Impressionâs contention to the district court, and presentation to us, are worth noting here, because they narrow our focus. First, we discuss only Lexmarkâs sales to end users (and the resales and reuses deriving from those sales), because neither party has made an argument for distinguishing Lex-markâs sales to resellers. ÂĄSecond, we take as a premise that both the first purchaser and Impression as a re-purchaser had adequate-notice of the single-use/no-resale restriction before they made their purchases; the adequacy of that notice is unchallenged. Thus, we do not have before us the questions that would arise, whether under principles governing bona fide purchasers or otherwise, if a downstream re-purchaser acquired a patented article with less than actual -knowledge of such a restriction. Third, Impression has not contended that the particular restriction at issue gives rise to a patent-misuse defense, constitutes an antitrust violation,' or exceeds the scope of the Patent Actâs express grant of exclusive rights over patented articles, 35 U.S.C. §§ 154 , 271. Rather, Impression contends that, although there is no other illegality or breach of statutory limits identified, the single-usd/no-resale restriction is to be disregarded for exhaustion purposes. According to Impression, it has the authority to resell despite the known denial' of suchâauthority-by Lex-mark for the Return Program cartridges. Impression presented its exhaustion der fense by filing motions,to dismiss the infringement count, one motion for each of the two groups of cartridges at issue.' For each motion, Impression âdid not contest that, under this courtâs governing law, its exhaustion defense must fail: Mallinckrodt for the cartridges initially sold in the United States, Jazz Photo for the cartridges initially sold abroad. But it argued that the Supreme Courtâs more recent decisions had made Mallinckrodt and Jazz Photo no longer good law. In a pair of opinions issued the same day, the district court agreed with Impression about Mallinckrodt but disagreed about Jazz Photo. 1 . The district court granted Impressionâs motion to dismiss Lexmarkâs claim of infringement involving the single-use cartridges Lexmark had first sold in the United States. Lexmark Intâl, Inc. v. Ink Techs. Printer Supplies, LLC, No. 1:10- *730 CV-564, 2014 WL 1276133 (S.D.Ohio Mar. 27, 2014) (Domestic Sale Opinion), modified at J.A. 34-35 based on a joint stipulation of the.parties, J.A. 2554-66. Like Impression, the court recognized that there is no exhaustion here under this courtâs decision in Mallinckrodt, which rejected an, exhaustion defense in circumstances similar to those presented hereâ namely, where a patentee sold a patented article subject to an otherwise-unobjectionable single-use restriction. Id. at *4, *6 . And. the court recognized this courtâs post- Mallinckrodt decisions as reiterating that a â âconditional saleâ â of that type does not cause exhaustion of the patenteeâs preserved rights in the article. Id. at *4 , *6 (quoting Princo Corp. v. Intâl Trade Commân, 616 F.3d 1318, 1328 (Fed.Cir. 2010) (en banc)). In nevertheless finding exhaustion here, the district court examined a number of Supreme Court decisions on patent exhaustion. It noted the Courtâs explanation in Bloomer v. McQuewan, 55 U.S. (14 How.) 539, 549-50 , 14 L.Ed. 532 (1853), that a patenteeâs grant of a license to another to make and sell a patented article is not the same thing as the. patenteeâs sale of the article itself. Domestic Sale Opinion, 2014 WL 1276133 , at *3. It noted, too, tfie Courtâs rejection of an exhaustion defense in General Talking Pictures Corp. v. Western Electric Co., 304 U.S. 175 , 58 S.Ct. 849 , 82 L.Ed. 1273 , opinion on rehearing at 305 U.S. 124 , 59 S.Ct. 116 , 83 L.Ed. 81 (1938), which held that a buyer of a patented article infringĂ©d when it used the article in a way forbidden by a known use restriction, having bought the article from a manufacturer licensed by the pat-entee to make and sell the article only to buyers who complied with the use restriction. Domestic Sale Opinion, 2014 WL 1276133 , at *3. The district court also noted that the Supreme Court in Quanta found exhaustion where âthe Supreme Court determined that the agreements [at issue] broadly authorized Intel [the seller] to sell the licensed products without restrictions or conditions.â Id. at *5 (emphasis added). Despite that recognition of what Quanta involved; the district court concluded âthat Quanta overruled Mallinckrodt sub silentio.â Id. at *5, *6 . Although Return Program cartridges were sold under post-sale restrictions on reuse and resale, the district. court held that âthose post-sale use restrictions do not prevent patent rights from being exhausted given that the initial sales were authorizĂ©d and unrestricted.â Id. The court thus dismissed the infringement claim regarding Impressionâs actions involving Return PrĂłgram cartridges Lexmark had sold in the United States. Id. at *7 . 2 As to âą cartridges Lexmark had sold abroad, the court held that exhaustion did not .apply, i.eâ did not render Impressionâs imports and domestic resales of those cartridges. non-infringing. Lexmark Intâl, Inc. v. Ink Techs. Printer Supplies, LLC, 9 F.Supp.3d 830 (S.D.Ohio 2014) (Foreign Sale Opinion). The court recognized, and Impression did. not. dispute, that âunder Jazz Photo, an initial authorized sale of a patented product outside of the United States would not exhaust the patent rights of the patent holder.â Id. at 833 . It then examined the Supreme Courtâs decision in Kirtsaeng and rejected impressionâs contention that Kirtsaeng âoverturns the Federal Circuits decision in Jazz Photo, 264 F.3d 1094 , such that Lexmarkâs patent rights were exhausted upon the first authorized sale abroad.â Foreign Sale Opinion, 9 F.Supp.3d at 834 (footnote omitted). The court stated that â[t]he Supreme Courtâs decision was rooted in interpreta *731 tion of a statutory provision of copyright law,â namely, 17 U.S.C. § 109 (a). Foreign Sale Opinion, 9 F.Supp.3d at 833 . The district court noted the absence from Kirtsaeng of any discussion of exhaustion in the patent field and the Supreme Courtâs longstanding recognition that copyright law and patent law are not interchangeable. Id. at 835 (citing Bobbs-Merrill Co. v. Straus, 210 U.S. 339, 346 , 28 S.Ct. 722 , 52 L.Ed. 1086 (1908)). It added.that Kirt-saeng âis rooted in statutory and -legislative interpretation of section 109(a) of the Copyright Act,â but â[njoticeably absent from patent law is a codification of the exhaustion doctrine,â concluding: . âthe core statutory text that weighed in favor .-of a non-geographical interpretation is nonexistent in the context of patent law.â Id. The Patent Act, the . court concluded, calls for its own analysis of âcontext, history and practical considerations.â Id. at 836. For those reasons, while recognizing that this court might reconsider Jazz Photo in light of Kirtsaeng , the district court held that Jazz Photo remains good law. Id. at 837-38. The court therefore denied Impressionâs motion to dismiss Lexmarkâs claim of infringement involving the Foreign-Sold Cartridges. Id. at 838. 3 Soon thereafter, with the partiesâ agreement, the court entered ĂĄ âStipulated Final Judgment.â J.A. 1. The judgment was (a) for-Impression (i.e., Impression does not infringe) as- to the Return Program cartridges whose precursors Lexmark had sold in the United States and (b) for Lexmark (i.e., Impression infringes) as to cartridges whose precursors Lexmark had initially sold abroad. Id. The- parties agree that the judgment is final under 28 U.S.C. § 1295 (a)(1), even as to cartridges âfound to infringe. . In agreeing to the final judgment of infringement as to the foreign-sold cartridges, which remained an open issue after the Rule 12(b)(6) rulings, Impression reasonably construed the - district courtâs Jazz Photo ruling to foreclose its exhaustion defense,-even though all the district court had done was to deny Impressionâs request for judgment in its favor based on that defense. In particular, the district courtâs rationale, as to the unavailability of exhaustion did not depend on the facts in the record that Lexmark identifies as suggesting the âregionalâ.â character of its foreign-sold cartridges, facts that .therefore went unexplored in the district court. And, notably, when Impression agreed to a judgment of infringement as to foreign-sold cartridges, it did not preserve an implied-license defense, even though the Supreme Court made clear , .in Quanta the distinctness, .of implied-license and exhaustion defenses. 553 U.S. at 637 , 128 S.Ct. 2109 . D Impression appealed and Lexmark cross-appealed. This court has jurisdiction under 28 U.S.C. § 1295 (a)(1). The parties submitted briefs ...and presented oral argument to a panel of this court, focused on whether Quanta had stripped Mallinckrodt of its controlling force and whether Kirtsaeng had stripped Jazz Photo of its controlling force. Shortly after oral argument, this court sua sponte took the case en banc. Lexmark Intâl, Inc. v. Impression Prods., Inc., 785 F.3d 565 (Fed.Cir.2015). We directed the parties to address the following issues: (a) The case involves certain sales, -made abroad, of articles patented in the United States. In light of Kirtsaeng v. John Wiley & Sons, Inc., 133 S.Ct. 1351 (2013), should this court overrule Jazz Photo Corp. v . International Trade *732 Commission, 264 F.3d 1094 (Fed.Cir. 2001), to the extent it ruled that a sale of a patented item outside the United States never gives rise to United States patent exhaustion[?] (b) The case involves (i) sales of patented articles to end users under a restriction that' they use the articles once and then return them and (ii) sales of the same patented articles to resellers under ĂĄ restriction that resales take place under the single-use-and-retum restriction: Do any of those sales give rise to patent exhaustion? In light of Quanta Computer, Inc. v. LG Electronics, Inc., 553 U.S. 617 , 128 S.Ct. 2109 (2008), should this court overrule Mallinckrodt, Inc. v. Medipart, Inc., 976 F.2d 700 (Fed.Cir.1992), to the extent it ruled that a sale of a patented article, when the sale-is made under a restriction that is otherwise lawful and within the scope" of the patent grant, does not give rise to patent exhaustion? Id. at 566. Discussion I The Patent Actâs language defines the framework within which the two exhaustion questions arise. In 1952, based on pre-existing uneodified understandings, Congress set forth a statutory prescription of what constitutes patent âinfringement.â See Aro Mfg. Co. v. Convertible Top Replacement Co., 377 U.S. 476, 483-84 , 84 S.Ct. 1526 , 12 L.Ed.2d 457 (1964) (Aro II); Aro I, 365 U.S. at 341-42 & n. 8, 81 S.Ct. 599 . In its current form, which includes a bar on importation and offers to sell added by a 1994 enactment, § 271(a) states that, unless another provision of the Act provides otherwise, whoever âwithout authorityâ during the term of a patent commits certain actsââmakes, uses, offers to sell, or sells any patented invention, within the United States or imports into the United States any patented inventionâââinfringes the patent.â 35 U.S.C. § 271 (a). Section 271(a) connects âmake,â âsell,â âuse,â and the other terms with the disjunctive âor,â as does the related provision granting the patentee various rights to exclude others from the same activities, id. § 154(a). Congress has' thus prescribed that whoever, âwithout authority,â does any one of the listed actsââthe making, using, offering to sell, selling, or importing of a patented invention,â Global-Tech Appliances, Inc. v. SEB S.A., 563 U.S. 754 , 131 S.Ct. 2060, 2065 , 179 L.Ed.2d 1167 (2011) (emphasis added)âis an infringer. See 5 Donald S. Chisum, Chisum on Patents § 16.01 (2015) (âThe exclusive rights are disjunctive: one may infringe by (1) making without selling or using, (2) using without making or selling or (3) selling without making or using.â) (footnote omitted); William C. Robinson, The Law of Patents §§ 903-906 (1890). The government observes: âNothing in the text of the Patent Act expressly prevents a patentee from demanding compensation from each downstream user or reseller of an article embodying his invention.â U.S. Br. 5. Section 271(a)âs language embodies an understanding of âinfringementâ that was long recognized even before Congress enacted § 271 as part of the 1952 recodification of the patent laws. The pre-1952 statute included a right-to-exelude provision comparable to § 154, which, in language that varied over time, gave the patentee a right to exclude others (not a right to practice the invention). See 35 U.S.C. § 40 (1946); Rev. Stat. § 4884; Bauer & Cie. v. OâDonnell, 229 U.S. 1, 9-10 , 33 S.Ct. 616 , 57 L.Ed. 1041 (1913); 5 Chisum § 16.02[1]. But while the pre-1952 statute provided for actions for âinfringement,â e.g., 35 U.S.C. §§ 67 , 70 (1948); Rev. Stat. §§ 4919, 4921, there was no provision pre *733 scribing what constitutes infringement. Nevertheless, the courts consistently understood infringement' to mean what § 271 came to sayâcommitting the identified acts without authority (synonymously, without consent or permission): âThe infringement of a patent, being the invasion of this exclusive right, therefore consists in the manufacture, usĂ©, or sale of the invention protected by the patent within the area and time described in the patent, by any person not dul y authorized to do so by the patentee.â Robinson, § 890, at 43-44 (emphasis added); see 3 Anthony William Deller, Walker on Patents § 450, at 1681 (1937) (âAn infringement is the unauthorized making or using or selling of the patented invention.â). 3 Thus, the 1952 Actâs âwithout authorityâ language simply codifies an authority requirement long recognized to- be the meaning of âinfringementâ of the enumerated rights to exclude. See Warner-Jenkinson Co. v. Hilton Davis Chem. Co., 520 U.S. 17, 26-27 , 117 S.Ct. 1040 , 137 L.Ed.2d 146 (1997) (§ 271(a) left direct-infringement law intact); Aro II, 377 U.S. at 483 , 84 S.Ct. 1526 ; Aro I, 365 U.S. at 342 , 81 S.Ct. 599 ; Giles S. Rich, Infringement Under Section 271 of the Patent Act of 1952, 21 Geo. Wash. L.Rev. 521, 537 (1953). The requirement of âauthorityâ in order to avoid infringement, in its natural meaning, refers to a grant of permission. Logically, permission -might come from Congress, whether outside the Patent Act or within the Patent Act itself, as reflected in § 271(a)âs â[e]xcept as otherwise provided in [the Patent Act]â language, which explicitly, bows to other contrary sections of the Patent Act. But it is undisputed that no other statutory provision applies in this case. See U.S. Br. 5; compare 35 U.S.C. § 262 (each joint owner of a patent may engage in making, using, selling, offering to sell, and importing, without authority from other owners). Nothing in the Act supersedes the § 271 requirement of authority from the patentee before a person in Impressionâs position may engage in the itemized acts without infringing. In this respect, the Patent Act differs from the Copyright Act. In the copyright statute, Congress included a provision giving a right of sale to certain article owners, 17 U.S.C. § 109 (a), and made the infringement, importation, and exclusive-rights provisions all subservient to that express guarantee. 4 The Patent Aet does not con *734 tain a congressionally prescribed exhaustion rule, let alone a provision that makes the express definition of infringement and rights to exclude (both of which now encompass importation) subservient to any congressionally expressed exhaustion rule. 5 In the Patent Act, then, as relevant here, it is a conferral of âauthorityâ by the patentee that is needed in order for the actions listed in § 271(a) not to constitute infringement. As the government says, noting the parallelism of § 271(a) and the § 154(a) grant of rights to exclude, what § 271(a) meĂĄns is that â[wjhoever does any of these acts âwithout authorityâ from the patentee infringes the patent.â U.S. Br. 1 (emphasis added).' In brief: § 271(a) by its terms requires that whoever engages in the enumerated acts receive permission from the patentee (directly or indirectly) for the acts being performed, which otherwise ĂĄre infringing; and nothing in § 271(a) constrains the patenteeâs choices about whom to grant the required authority, if anyone, or about which acts (of manufacture, use, sale, etc.) to authorize, if any. Congress defines the existence and scope of patent rights. See, e.g., Octane Fitness, LLC v. ICON Health & Fitness, Inc., â U.S. â, 134 S.Ct. 1749, 1755-56 , 188 L.Ed.2d 816 (2014); Crown Die & Tool Co., 261 U.S. at 40, 43 S.Ct. 254 ; Continental Paper Bag Co. v. Eastern Paper Bag Co., 210 U.S. 405, 423 , 28 S.Ct. 748 , 52 L.Ed. 1122 (1908). Unless Congress has directed the courts to fashion governing rules in a particular statutory context- (as in, e.g., the Sherman Act), âonce Congress addresses- a subject, even a subject previously governed by federal common law, the justification for lawmaking by-the federal courts is greatly diminished. Thereafter, the task of the federal courts is to interpret and apply statutory law, not to create common law.â Northwest Airlines, Inc. v. Transp. Workers Union of Am., 451 U.S. 77 , 95 n. 34, 101 S.Ct. 1571 , 67 L.Ed.2d 750 (1981); see City of Milwaukee v. Illinois, 451 U.S. 304, 315 , 101 S.Ct. 1784 , 68 L.Ed.2d 114 (1981) (âOur commitment to the separation of powers is too fundamental to continue to rely on federal common law by judicially decreeing what accords with common sense and the public weal when Congress has addressed the problemâ) (internal quotation marks omitted); Am. Elec. Power Co. v. Connecticut, 564 U.S. 410 , 131 S.Ct. 2527 , 2537, 180 L.Ed.2d 435 (2011). If ordinary congressional supremacy is to be respected, exhaustion doctrine in the Patent Act must'be understood as an interpretation of § 271(a)âs âwithout authorityâ language. And so it has been understood: some sales confer authority on the purchaser to take certain actionsâsuch as selling or using the purchased article in the United States or importing it into the United Statesâthat would otherwise be infringing acts. See 5 Chisum § 16.03[2][a], at 16-362.8; U.S. Br. 1 (tying exhaustion to âauthorityâ language of § 271(a)). We decide here (a) whether a sale, even though accompanied by a clearly communicated and otherwise-lawful denial of such authority, nonetheless has the legal effect of conferring such authority and (b) whether a foreign sale has the legal effect of conferring such authority where (as we must assume at present in this case) neither a grant nor a reservation of § 271(a) *735 rights was communicated to the purchaser before the foreign sale. 6 II The Mallinckrodt issue has been framed for us in clear terms. Suppose that Lex-mark had granted another firm a nonexclusive license to make and sell Return Program cartridges. It is undisputed and clear under Supreme Court- precedentâ most prominently, the 1938 decision in General Talking Picturesâthat Lexmark would not have exhausted its patent rights in those cartridges, upon the manufacturing licenseeâs sale (the first sale), if a buyer with knowledge of the restrictions resold or reused them in violation of the restrictions. Impression and the government contend that a different result is requiredâthat Lexmark automatically lost its patent rightsâsimply because Lex-mark sold the Return Program cartridges itself, subject to the same communicated restriction, rather than having left, the manufacture and sale to others under license. See U.S. Br. 7, 8, 10, 11 (case turns on distinction between patentee sale and non-patentee licensee sale). (Impression has left the en banc briefing on this issue largely to the government.) .We conclude otherwise, as we did in Mallinckrodt and subsequent decisions. A sale made under a clearly communicated, otherwise-lawful restriction as to post-sale use or resale does not confer on the buyer and a subsequent purchaser the âauthorityâ to engage in the use or resale that the restriction precludes. And there is no sound reason, and no Supreme Court precedent, requiring a distinction that gives less control to a practicing-entity patentee that makes and sells its own product than to a non-practicing-entity patentee that licenses others to make and sell the product. A Mallinckrodt involved a patenteeâs sale of its medical device to hĂłspitĂĄls, subject to a âsingle use onlyâ restriction. The device consisted of a nebulizer and associated components for dĂ©livĂ©ring to a pĂĄtient, for diagnosis or treatment of lung diseases, a mist of radioactive or therapeutic material. It also trapped radioactive or toxic material when the patient exhaled. Mallinckrodt sold it under the single-use condition and with instructions for post-use disposal in a lead-shielded container. But some hospital purchasers instead sent used devices to Medipart for reconditioning and for replacement of certain compo *736 nents. When Mallinckrodt sued Medipart for direct and indirect infringement by-virtue of the reuse in violation of the single-use restriction, the district court granted Medipart summary judgment of non-infringement, concluding that Mallinck-rodtâs sale of the devices exhausted its ability to assert its patent rights in the units sold. 976 F.2d at 701-02 . This court reversed. Id. at 709 . The court stated its ruling: âThe restriction here at issue does not per se violate the doctrine of patent misuse or the antitrust law. Use in violation of a valid rĂ©striction may be remedied under the patent law, provided that no other law prevents enforcement of the patent.â Id. at 701 . In explanation, the court observed that the patent grant of .§ 154 is a âright to exclude,â which âmay be waived in whole or in part,â âsubject to patent, contract, antitrust, and any other applicable law, as well as equitable considerations such as are reflected in the law of patent misuse.â Mallinckrodt, 976 F.2d at 703 . It noted that the Supreme Court had held that two particular types of restrictions in sales exceeded the legitimate scope of patent rights, so that the patentee did not retain its patent rights against, a buyerâs sale or use of a patented article in violation of those particular conditions: resale-price-maintenance -conditions, Bauer, 229 U.S. 1 , 33 S.Ct. 616 ; Straus v. Victor Talking Machine Co., 243 U.S. 490 , 37 S.Ct. 412 , 61 L.Ed. 866 (1917); Boston Store of Chicago v. American Graphophone Co,, 246 U.S. 8 , 38 S.Ct. 257 , 62 L.Ed. 551 (1918), and tying arrangements requiring use of non-patented articles with the patented one, Motion Picture Patents Co. v. Universal Film Mfg. Co., 243 U.S. 502 , 37 S.Ct. 416 , 61 L.Ed. 871 (1917). Mallinckrodt, 976 F.2d at 704 . The Mallinckrodt court explained that those cases âdid not hold, and it did not follow, that all restrictions accompanying the sale of patented goods were deemed illegal.â Id. The court then described the key Supreme Court precedent, General Talking Pictures. As the Mallinckrodt court observed, in General Talking Pictures âthe patentee had authorized the licensee to make and sell amplifiers embodying the patented invention for a specified use (home radios)/â and â[t]he. defendant had purchased the patented amplifier from the manufacturing licensee, with knowledge of the patenteeâs restriction on use,â but used it contrary to the. restriction. Id. at 705 . The Supreme Court held that the defendant was liable for infringement; it âobserved that a restrictive license to a particular use was permissible, and treated the purchaserâs unauthorized use as infringement of the patent.â Id, This court noted that the Supreme Court in General Talking Pictures âdid not decide the situation where the patentee was the manufacturerâ and seller. Id. This court then held that to distinguish the patentee sale (at issue in Mallinckrodt) from the licensee sale (at issue in General Talking Pictures) would be to make âformalistic distinctions of no economic consequence.â Id. Finally, the court described âa group of cases in which the Supreme Court considered and affirmed the basic principles that unconditional sale of a patented device exhausts the patenteeâs right to control the purchaserâs use of the device; and that the sale of patented goods, like other goods, can,.be conditioned.â Id. at 706 . This court noted that, insofar as several cases ruling against patenteesâ claims discussed or involved sales, the sales were not made under restrictions as to use. Id. at 707 (discussing Bloomer, 55 U.S. (14 How.) 539 ; Adams v. Burke, 84 U.S. (17 Wall.) 453 , 21 L.Ed. 700 (1873); Keeler v. Standard Folding Bed Co., 157 U.S. 659 , 15 S.Ct. 738 , 39 L.Ed. 848 (1895)). The court *737 also noted the statement in Mitchell v. Hawley that â[s]ales of the kind may be made by the patentee with or without conditions,â 83 U.S. (16 Wall.) 544, 548 , 21 L.Ed. 322 (1873), and the holding of Mitchell that a purchaser of a patented machine âlicensed for use only during the original term of the patentâ was liable for infringement for using the machine past that term when the patent term was extended. 976 F.2d at 707 . The court in Mallinekrodt concluded that â[u]nless the condition violates some other law or policy (in the patent field, notably the misuse or antitrust law, e.g., United States v. Univis Lens Co., 316 U.S. 241 , 62 S.Ct. 1088 , 86 L.Ed. 1408 (1942)), private parties retain the freedom to contract concerning conditions of sale.â 976 F.2d at 708 . Thus, unless ĂĄ sale restriction is improper under some other body of law, whether within the Patent Act or outside it, a patenteeâs own sale of its patented article subject to a clearly communicated restriction does not confer authority to sell or use the article in violation of that restriction, i.e., does not exhaust the patenteeâs § 271 rights against such conduct involving that article. Since Mallinckrodt, we have followed that principle. B. Braun Med., Inc. v. Abbott Labs., 124 F.3d 1419, 1426 (Fed.Cir.1997); Princo Corp. v. Intâl Trade Commân, 616 F.3d 1318, 1328 (Fed.Cir.2010) (en banc). B The district court concluded in this case that Quanta overturned t}ie Mallinekrodt rule as to a patenteeâs sale of a patented article subject to a clearly communicated single-use/no-resale restriction. But no issue as to such a sale was presented for decision or decided in Quanta. And the Supreme Court in Quanta did not address the distinction between patentee sales and licensee sales on which the argument for overturning Mallinekrodt rests. Quanta did not involve a patenteeâs sale at all, let alonĂ© one subject to a restriction or, more particularly, a single-use/no-resale restriction. Quanta involved a sale made (to computer maker Quanta) not by the patentee (LGE) but by a manufacturing licensee (chip maker Intel), which the patentee, had authorized to make and sell thĂ© articles at issue (chips for installation in computers that would then be covered by LGEâs patents). 553 U.S. at 623-25 , 128 S.Ct. 2109 . And the patenteeâs authorization to the licensee to make (the first) sales was not subject to any conditions, much less conditions to be embodied in those sales. Id. at 636-38 , 128 S.Ct. 2109 . While Intel had certain other contractual obligations to LGE regarding notice to Intelâs purchasers, neither party contended that Intel breached those obligations, and in any event, the Court repeatedly stated that the relevant LGE-Intel contract gave Intel an unrestricted authorization to sell the articles. Id. at 636-37 , 128 S.Ct. 2109 (âIntelâs authority to sell its products embodying the LGE Patents was not conditioned on the notice or on Quantaâs decision to abide by LGEâs directions in that notice.â); id. at 637 , 128 S.Ct. 2109 (âThe License Agreement authorized Intel to sell producĂs that practiced the LGE Patents. No conditions limited Intelâs authority to sell products substantially embodying the patents.â); id. at 638 , 128 S.Ct. 2109 (âNothing in the License' Agreement limited' Intelâs ability to sell its products practicing the LGE Patents.â). In short, Quanta did not involve the issue presented here. The facts defining the issues for decision, and the*issues decided, were at least two steps removed from the present case. There were ho *738 patentee sales, and there were no restrictions on the sales made by the licensee. The two main issues decided by the Court in Quanta have no bearing on the issue of restricted sales by a patentee. The Court decided that exhaustion applies to method claims. Id. at 628-30 , 128 S.Ct. 2109 . And the Court decided âthe extent to which a product must embody a patent in order to trigger exhaustion.â Id. at 630 , 128 S.Ct. 2109 ; see id. at 630-35 , 128 S.Ct. 2109 . Only the third issue addressed by the Court in Quanta concerns restrictions on salesâthough not patenteesâ salesâand the Courtâs discussion of that issue does not undermine Mallinckrodtâs ruling that a patentee can preserve its patent rights through restrictions on its sales. As just described, when LGE invoked precedent such as General Talking Pictures that make clear that patentees are able to preserve their patent rights through restrictions on the sales they authorizes licensees to make, Quanta, 553 U.S. at 636 , 128 S.Ct. 2109 , the Courtâs response was to conclude that there simply were no such restrictions on LGEâs grant to Intel of the authority to sell. Id. at 636-38 , 128 S.Ct. 2109 . The Court thus had prominently in view the principle that, through at least one path,, a patentee can reserve its patent rights through sale restrictions. The Court found the principle inapplicable to the case before it because of the absence of any restriction, and the Court said nothing to cast doubt on the principle. Indeed, the Court indirectly underscored the principle when it quoted Motion Picture Patents as stating âthe ruleâ of exhaustion in terms expressly based on an ââunconditional sale.ââ Quanta, 553 U.S. at 626 , 128 S.Ct. 2109 (quoting Motion Picture Patents, 243. U.S. at 516, 37 S.Ct. 416 ). And the Court did not consider whether or decide that the principle was limited to contracted-out, as distinguished from in-house, manufacturing and sales, or even recognize and discuss such a distinction. Inferring disapproval of Mallinckrodt by the Supreme Court in Quanta is unwarranted for another reason. The decision of this court under review in Quanta relied centrally on Mallinckrodt and its successor case, B. Braun Medical. See LG Elecs., Inc. v. Bizcom Elecs., Inc., 453 F.3d 1364 , 1370 (Fed.Cir.2006). In the Supreme Court, the government prominently featured an argument that Mallinckrodt was incorrect and should be repudiated, U.S. Amicus Brief at 18-24, Quanta (No. 06-937), 2007 WL 3353102 , and Quanta presented similar criticisms of Mallinckrodt, Brief for Petitioner at 13, 30-33, Quanta (No. 06-937), 2007 WL 3276505 . Yet the Supreme Court said nothing about Mallinckrodt or B. Braun Medical. The evident explanation is that, at a minimum, no question was presented for decisionâor was being decidedâas to the effect a restriction on the first sale, whether made by a patentee or by a manufacturing licensee, would have on preservation of § 271, rights. C , For the foregoing reasons, the challenge to Mallinckrodt in the present case cannot rest on what the Supreme Court in Quanta ruled about the issues it said it was addressing or the facts and issues presented for decision. The challenge asserts that any post-sale restriction in a patenteeâs own sale fails, as a matter of law, to preserve the patenteeâs § 271 rights against unauthorized sales or uses. The argument rests ultimately on language the Court used in Quanta in introducing the exhaustion doctrine before defining the specific issues for decisionâas it has done elsewhere. *739 The Court in Quanta said: âThe longstanding doctrine of patent exhaustion provides that the initial authorized sale of a patented item terminates all patent rights to that item.â 553 U.S. at 625 , 128 S.Ct. 2109 . More recently, the Court used similar âauthorized saleâ language in introducing the exhaustion doctrine in Bowman v. Monsanto Co., which held that a patentee, by selling patented seeds, does not lose its § 271 right to prevent the buyer, from making new seeds. The Court said: âUnder the doctrine of patent exhaustion, the authorized sale of a patented article gives the purchaser, or any subsequent owner, a right to use or resell that article.â â U.S. â, 133 S.Ct. 1761, 1764 , 185 L.Ed.2d 931 (2013). See also, e.g., Univis, 316 U.S. at 249 , 62 S.Ct. 1088 (âauthorized saleâ); Dissent at 774-76. The challenge to Mallinckrodt asserts that any sale of a patented article by a patentee, even when the rights granted are expressly restricted, is automatically an âauthorized sale,â causing the patentee to lose all § 271 rights in the item sold. That consequence follows, the argument goes, no matter how clearly the patentee states an otherwise-lawful restriction on what authority is being conferred and what authority is being withheld. In this view, exhaustion law embodies a sharp distinction between a sale by a patentee (for which restrictions are to b,e disregarded) and a sale made by another person authorized by the patentee to sell, i.e., a licensee as in General Talking Pictures (for which a patentee may preserve its § 271 rights by restricting the licenseeâs authorized sales). That is an extraordinary doctrinal consequence to find established by the Supreme Courtâs use of the phrase âauthorized sale.â No one suggests that Bowman (concerning new articles) intended such consequences. And there are .good reasons not to find any such implied meaning in Quanta either 1 Most obviously, as discussed above, the Court was not addressing the patentee-sale/licensee-sale distinction. Among other things, the Court did not consider the issues presented by making such a distinction, such as where the line would sensibly be drawn along the spectrum that includes original patentees, assignees, exclusive licensees, and non-exclusive licensees. Such distinctions matter for determining who may bring infringement suits, but they can involve detailed inquiries into the contractual relationships between an original patent owner and others (here, a first seller), based on information a buyer may have no ability or reasonâ to acquire. See, e.g., Independent Wireless Telegraph Co. v. Radio Corp. of Am., 269 U.S. 459, 464-69 , 46 S.Ct. 166 , 70 L.Ed. 357 (1926); Crown Die & Tool, 261 U.S. at 40-41 , 43 S.Ct. 254 ; E.W. Bliss Co. v. United States, 253 U.S. 187, 192 , 40 S.Ct. 455 , 64 L.Ed. 852 (1920); Pope Mfg. Co. v. Gormully & Jeffery Mfg. Co., 144 U.S. 248 , 12 S.Ct. 641 , 36 L.Ed. 423 (1892); Waterman v. Mackenzie, 138 U.S. 252, 255-56 , 11 S.Ct. 334 , 34 L.Ed. 923 (1891); 8 Chisum § 21.03. Nothing in Quanta suggests that the Court either considered such issues or intended to build such inquiries into the exhaustion doctrine by making the distinction the government now urges. 2 One cannot infer the contrary from the immediate context of the âauthorized saleâ phrase, i.e., from the several decisions that Quanta briefly describes in the paragraph it introduces with - the âauthorized saleâ shorthand. 553 U.S. at 625 , 128 S.Ct. 2109 . Those decisions did not involve restricted patentee sales of patented articles. *740 And the Quanta Court, in describing those cases, said nothing to indicate adoption of a patentee-sale/licensee-sale distinction. Thus, Bloomer v. McQuewan identifies no sale of a patented article as involved in the case. During an initial patent term, a license granted to the defendants (via Collins and Smith, then Barnet, then Warner and McQuewan) the right to make patented machines and use them âwithout any limitation as to the time for which they were to be used.â 55 U.S. (14 How.) at 553 ; id. at 540-41, 548 . When the defendants made and used such machines, and the patent term was later extended, the Supreme Court held that the unrestricted right to use did not end when the earlier patent term ended, because the . right to use did not come from the patent statute, which grants only rights to exclude, not rights to practice. Id. at 549-50 . The Court discussed purchased articles, but with no restrictions at issue, it did not decide the effect that any restrictions would have. Id. Bloomer v. Millinger, 68 U.S. (1 Wall.) 340 , 17 L.Ed. 581 (1864); is similar in its facts to McQuewan . The Court held that Millinger, who âconstructed the machines and put them in operation under the authority of the patentee or his assignsâ during a first term extension, was not subject to an infringement action for continued use during a second term extension. Id. at 349, 350. The Court made no distinction between construction and purchase, or between purchases âfrom the patentee ... or from any other person by him authorized toâ make the sale, on the issues addressed. Id. at 350, 351. In referring to a constructor or purchaser of a patented machine having âalso acquired the right to use and operate it during the lifetime of the patent,â id. at 350 (emphasis added), the Court implicitly recognized that a purchaser might not acquire a full right to use an acquired article. And in Adams v. Burke, the Boston regional assignee (Lockhart & Seelye) sold patented coffin lids to Burke, âwithout condition or restriction.â 84 U.S. (17 Wall.) at 455 (emphasis added). When Burke used the lids outside the Boston territory, for burials within a different territory where Adams was the regional as-signee, Adams sued. The Court held that, for such an unrestricted sale, âthere is no restriction on thĂ©ir use to be implied for the benefit of the patentee or his assignees or licensees.â Id. at 457 (bold italics added). When the Supreme Court in Quanta moved beyond the Bloomer cases and Adams , it likewise did not advance a patentee-sale/licensee-sale distinction. 553 U.S. at 625-26 , 128 S.Ct. 2109 . The Courtâs next paragraph recounts the developments of the 1910s: The Court initially adopted a broad greater-ineludes-the-lesser approach allowing preservation of patent rights through even otherwise-unlawful restrictions, such as tie-ins, Henry v. A.B. Dick Co., 224 U.S. 1 , 32 S.Ct. 364 , 56 L.Ed. 645 (1912); but the Court quickly rejected that broad principleâ and its application to resale price maintenance, Bauer, 229 U.S. 1 , 33 S.Ct. 616 (1913), and then to tie-ins, Motion Picture Patents, 243 U.S. 502 , 37 S.Ct. 416 (1917), the latter expressly overruling A.B. Dick. The Court in Quanta , summarizing that history, said nothing about the patentee-sale/licensee-sale distinction; and it recognized that the âruleâ that emerged, as quoted from Motion Picture Patents , was one based on â âa single, unconditional sale.â â 553 U.S. at 626 , 128 S.Ct. 2109 (emphasis added). The Court in Quanta then proceeded to a longer discussion of Univis . That discussion made no patentee-sale/licensee-sale distinction. Rather,.it recounted Univisâs *741 application of exhaustion to sales of articles that may not be strictly covered by the patent but that sufficiently embody the patent. 553 U.S. at 627-28 , 128 S.Ct. 2109 . In no part of the Courtâs discussion did the Court consider which cases involved âpatenteeâ sales and which âlicenseeâ sales. Indeed, it is not always easy to tell where the facts of each case fall on the spectrum from original patentee through non-exclusive licensee. See, e.g., Bauer, 229 U.S. at 8 , 33 S.Ct. 616 (seller was either âagentâ or âlicenseeâ). The Court in Quanta did not say that the inquiry mattered. And in Univis , the Court did the opposite of suggesting that the distinction matters: it affirmatively stated that it was treating the patent owner (Univis Corporation) and the licensee-seller (Lens Company) as the same for purposes of its analysis. 316 U.S. at 243 , 62 S.Ct. 1088 . 3 In these circumstances, it would read too much into the Courtâs use of the phrase âauthorized saleâ to draw the governmentâs conclusionâmaking the sharp patentee-sale/lieensee-sale distinctionâ without full analysis of statutory, prece-dential, and other considerations. Full analysis of the relevant legal context is necessary. Such analysis would be required regardless, but it is important to note that the phrase âauthorized saleâ does not, by its words alone, compel the governmentâs conclusion. It has long been a familiar feature of our legal landscape that property rights in a particular thingâlike the separate interests in making, selling, using, etc., an inventionâare viewed as a âbundleâ of rights (or sticks) that can generally be transferred, separately. 7 ; Of course, particular legal regimes, for various purposes, commonly identify the transfer of particular rights as determinative of a âsale.â In determining which transfers are decisive, context matters. And here the context is a statute that identifies separate rights of manufacture, sale, use, etc., and the precedential setting is one' that expressly recognizes the possibility of separating the rights in a patented article. See, e.g., Mitchell, 83 U.S. (16 Wall.) at 547 (exhaustion exists when a patentee âhas himself constructed a machine and sold it without any conditions, or authorized another to construct, sell, and deliver it, or to construct and use and operate it, without any conditions'âthe owner of the machine, whether he built it or purchased it, if he has also acquired the right to use and operate it during the lifetime of the patent, may continue to use itâ) (emphases added); Bloomer v. Millinger, 68 U.S. (1 Wall.) at 350 . Moreover, the statutory purpose of the inquiry here is to idĂ©ntify what sales confer âauthorityâ on the buyer to engage in distinct,- otherwise-infringing acts. *742 Context is particularly important where, as here, .the phrase being interpret ed comes from judicial opinions not directly deciding the point at issue. Chief Justice Marshall wrote for the Court almost 200 years ago: âIt is a maxim not to be disregarded, that general expressions, in every opinion, are to be taken in connection with the case in which those expressions are used.â Cohens v. Virginia, 19 U.S. (6 Wheat.) 264 , 399-400, 5 L.Ed. 257 (1821); see Armour & Co. v. Wantock, 323 U.S. 126, 132-33 , 65 S.Ct. 165 , 89 L.Ed. 118 (1944) (per Jackson, J.) (â[Wjords of our opinions arĂ© to be read in the light of the facts of the case under discussion____ General expressions transposed to other facts are often misleading.â). 8 We bear that maxim in mind in applying the body of Supreme Court case law on exhaustion: that body of precedent contains no decision against a patenteeâs infringement assertion in the present circumstances, and the decisions on related circumstances require careful reading to determine the best understanding of what issues the Court actually decided. D We conclude that a patentee may preserve its §. .271 rights when itself selling a patented article, through clearly communicated, otherwise-lawful restrictions, as it may do when contracting put the manufacturing and sale. 1 That conclusion follows naturally from the statute.' Congress straightforwardly prescribed, in § 271(a), that a sale or use of a patented article âwithout authorityâ is an infringement. Under that language, .a clear denial of authority leaves a buyer without the denied authority. The exhaustion rule for imrestrict-ed sales readily fits the language of § 271(a). It is reasonable for the courts to treat a patentee-made or patentee-author-ized sale of a patented article (without distinction) as presumptively granting âauthorityâ to the purchaser to use it and resell it. Such an approach recognizes the utility of having a default rule for determining whether authority has been conferred in the many circumstances where an express conferral is missing. And it chooses as the default a principle that sensibly accords with partiesâ likely expectations as to a domestic sale. But it is quite a different matter to treat a sale as conferring on the buyer the very authority that is being denied through clearly communicated restrictions. Mallinckrodt sensibly rejects that counter-textual result. Unless granting âauthorityâ is to be a legal fiction, a patentee does not grant authority by denying it. And that is so for patentee sales and licensee sales alike, i.e., whether the patentee denies the authority to its direct purchaser or to one purchasing through a manufacturing lieen- *743 see. For the same reason, the result: does not reasonably reflect market participantsâ expectations: a buyer cannot reasonably expect that the seller is conferring authority that the seller is expressly denying, whether the seller is the patentee or a manufacturing licensee. The statutory question of authority neither allows denials to be grants nor logically depends on whether there is an intermediary between, the patentee and the first buyer. In short, the governmentâs position would create a rule of court-made law that runs counter to, rather than accords with, the statutory definition of actionable infringement. An exhaustion rule should fit rather than contradict the statutory text. 2. Under longstanding Supreme . Court precedent, a patentee may preserve its patent rights against downstream buyers by arranging with someone else, even a nonexclusive licensee,- to make and sell patented articles, under clearly stated restrictions on post-sale activities. There is no good reason that a patentee that makes and sells the articles itself should be denied the ability that is guaranteed to a non-practicing-entity patentee. No precedent requires a contrary conclusion. a. The Supreme Court has recognized that a patentee may preserve its rights against infringement by establishing restrictions accompanying the- sale of the patented article (communicated at the-time of sale), including restrictions on the, buyerâs post-acquisition use. That recognition is implicit in the Motion Picture Patents statement of the exhaustion rule as based on an âunconditionalâ sale, as quoted in Quanta, 553 U.S. at 626 , 128 S.Ct. 2109 . More affirmatively, the Court upheld a claim .of infringement on that basis in Mitchell v. Hawley, where the licensee seller was. under a restriction as to the (temporal) scope of rights it could and did convey when selling the patented machine. Mitchell involved a licensee seller, but the Court stated the exhaustion principles in terms keyed to the absence of conditions and applicable to patentee sales: [W]hen [the patentee] has himself constructed a machine and sold it without any conditions, or authorized another to construct, sell, and deliver it, or to construct and use and operate it, without any conditions, and the consideration has been paid to him for the thing patented, the rule is well established that the patentee must be understood to have parted to that extent with all his exclusive right, and that he ceases to have any interest whatever in the patented machine so sold and delivered or authorized to be constructed and operated. 83 U.S. (16 Wall.) at 547 ; see id. at 548 (sales âmay be made by the patentee with or without conditions, as in other cases, but where the sale is absolute, and without any conditions, the rule is well settled that the purchaser may continue to use the implement or machine purchased until it is worn outâ). 9 Although Mitchell involved a licensee sale, its language did not distinguish licenseesâ sales from patenteesâ sales in the respects discussed, and it was not long before the Court invoked those for- *744 mutations in a patentee-sale case. Keeler, 157 U.S. at 662-63 , 15 S.Ct. 738 . Most importantly, the Court squarely held in the General Talking Pictures case that a patentee could preserve its infringement rights against unauthorized uses by restricting manufacturing licenseesâ authority to sell for such uses. General Talking Pictures Corp. v. Western Elec. Co., 304 U.S. 175 , 58 S.Ct. 849 , 82 L.Ed. 1273 , opinion on rehearing at 305 U.S. 124 , 59 S.Ct. 116 , 83 L.Ed. 81 (1938). Companies holding patent rights in certain amplifiers (AT & T, Western Electric, RCA) licensed the American Transformer Company to make and sell amplifiers. The Transformer Company âwas a mere licensee under a nonexclusive license, amounting to no more than âa mere waiver of the right to sue.â â 304 U.S. at 181 , 58 S.Ct. 849 (quoting De Forest Radio Telephone & Telegraph Co. v. United States, 273 U.S. 236, 242 , 47 S.Ct. 366 , 71 L.Ed. 625 (1927)). The license permitted sales only âfor radio amatĂ©ur reeĂ©ption, radio experimental reception, and home broadcast reception,â not âfor use in theaters as a part of talking picture equipment.â Id. at 180, 58 S.Ct. 849 . The Transformer Company nevertheless sold amplifiers to General Talking Pictures for theater use in violation of the restriction, and General TĂĄlking Pictures âhad actual knowledge that [the Transformer Company] had no license to make such a sale.â Id. When the patentees sued General Talking Pictures (the'buyer) for infringement, the Supreme Court, based on Mitchell, affirmed the judgment of infringement. Id. at 181-82 , 58 S.Ct. 849 . The Court came to the same conclusion when it reconsidered the question on rehearing. It said: âAny use beyond the valid terms of a license is, of course, an infringement of a patent.â 305 U.S. at 126 , 59 S.Ct. 116 . Moreover, â[t]hat a restrictive license is legal seems clear.â Id. at 127 , 59 S.Ct. 116 (citing Mitchell). The use restriction was a lawful one, the Court observed, and â[a]s the restriction was legal and the amplifiers were made and sold outside the scope of the license, the effect is precisely the same as if no license whatsoever had been granted to Transformer Company.â Id. General Talking Pictures, knowing of the restriction, was âliable because it ha[d] used the invention without license to do so.â Id. Thus, General Talking Pictures was held to be liable for patent infringement. It was not held liable for breach of contract; indeed, it had no contractual relationship with the patentees. b. The Supreme Court thus held that a patentee can preserve its patent rights by authorizing a manufacturing licensee to make and sell a patented article under an otherwise-proper restriction, including a restriction on the buyerâs post-purchase use. When the buyer, knowing of the restriction at the time of purchase, subsequently uses the article in violation of the restriction, the buyer is infringing. To distinguish the present patentee-sale situation, the government must contend that a patentee cannot preserve its patent rights against uses of a patented article contrary to known use restrictions if, instead of licensing someone else to make and sell the article, it chooses to make and sell the article itself. That contention would draw a sharp line between practicing-entity patentees (those Who themselves make and sell the articles at issue) and non-practicing-entity patentees (those who do not). Non-practicing-entities would have greater power to maintain their patent rights than practicing entities. The government points to no basis in the policy of the patent statute for making that distinction. Nothing in the patent statute suggests âą that patentees should have to *745 contract out their manufacture and sale of patented articles to preserve their § 271 rights. The essential tradeoff of the patent systemâto provide a market-based reward in exchange for disclosureâis equally applicable whether the patentee sells or licenses another to make and sell. The Federal Trade. Commission made the fundamental point as follows: âA patentee can obtain a financial reward for its patent by producing a product that incorporates the invention or by transferring the technology through a patent license or sale to a manufacturer who develops and produces a product. The market reward earned by the patentee in either case will depend upon the extent to which consumers prefer the patented. invention over alternatives and prior technology, which helps determine the inventionâs economic value.â See Fed. Trade Commân, The Evolving IP Marketplace: Aligning Patent Notice and Remedies with Competition 139 (2011) (footnote attached to âmarket rewardâ states: âThe âmarket rewardâ defined here is the amount the patentee could have earned by either selling a patented product or licensing the patented technology in the absence of infringement.â)! The distinction urged on us appears to be unjustifiably formalistic, not founded in relevant economic substance. Mallinckrodt, 976 F.2d at 705 . The proposed distinction would also introduce practical problems. Where would the line be drawn along the spectrum from original patentees to assignees (e.g., regional assignees) to exclusive licensees (exclusivity being possible as to some but not all of the § 154 rights) to nonexclusive licensees? As we already have noted, patent law makes those distinctions for purposes of identifying who may bring infringement actions, but the distinctions are sometimes difficult to pin down and dependent on detailed inquiries into contractual provisions. When purchasing a patented article from a particular seller under specified restrictions that are not independently improper, how is the buyer to know where the seller falls along- the spectrumâand, hence, whether the buyer may ignore the restrictions without fear of patent infringement? c. The government advances a doctrinal defense of the patentee-sale/licensee-sale distinction on which it rests its challenge to Mallinckrodt. The government begins its argument on the Mallinckrodt issue by first noting the absence of statutory text supporting its position and then turning, .in the next sentence, to a passage from Bloomer v, McQjietvan to supply a foundation for its argument. U.S. Br. 5. It asserts that â[tjhis distinction stems from the fact that licensees exercise a portion of the patenteeâs rights.â Id. at 8 (citing Bloomer v. McQuewan, 55 U.S. (14 How.) at 549-50 ). .But that key distinction is wrong as a matter of basic patent law, misreads Bloomer v. McQuewan, and cannot distinguish General Talking Pictures from this case. A mere nonexclusive licensee, as in General Talking Pictures, possesses no portion of the rights granted by Congress in the patent. Patent rights are only .rights to exclude, not rights to practice.- See 5 Chisum § 16.02[1]. Among the- âclearly established principlesâ! of patent law, as.the Supreme Court described them in Crown Die & Tool Co., are that âthe government did not confer on the patentee the right himself to make, use or vend his own inventionâ and âin its essence all that the government conferred by the patent was the right to exclude-others from making, using or vending his invention.â 261 U.S. at 35 , 43 S.Ct. 254 ; see Bauer, 229 U.S. at 10 , 33 S.Ct. 616 (âThe right to make, use, and sell an invented article ,is not derived from the patent law.... The [patent stat *746 ute], secured to the inventor the exclusive right to make, use, and vend the thing patented, and consequently to prevent others from exercising like privileges without the consent of the patentee.â); Continental Paper Bag, 210 U.S. at 425 , 28 S.Ct. 748 ; Bloomer v. McQuewan, 55 U.S. (14 How.) at 549 (âThe franchise which the patent grants, Consists altogether in the right' to exclude every one from making, using, or vending the thing patented, without the permission of the patentee. This is all that he obtains by the patent.â); Western Elec. Co. v. Pacent Reproducer Corp., 42 F.2d 116, 118 (2d Cir.1930); see also Dawson Chem. Co. v. Rohm & Haas Co., 448 U.S. 176, 215 , 100 S.Ct. 2601 , 65 L.Ed.2d 696 (1980) (âlong-settled view that the essence of a patent grant is the right to exclude others from profiting by the patented inventionâ). It is for that reason, for example, that a patentee may be prevented from practicing its own patent by anotherâs patent. See Cantrell, 117 U.S. at 694, 6 S.Ct. 970 ; Blake, 94 U.S. at 733; Smith, 88 U.S. (21 Wall.) at 118-19. A patentee exercises its congressionally granted rights only when it invokes its power. to exclude others, not when it sells its product. Similarly, the congressionally granted right to exclude may be viewed as being shared by certain exclusiveÂĄ -licensees, who, in appropriate circumstances (e.g., with joinder of the patent owner), may bring infringement actions against others to enforce exclusivity. See Independent Wireless, 269 U.S. at 464-69 , 46 S.Ct. 166 (discussing cases); 8 Chisum § 21.03[2]. But an exclusive licensee, in merely selling (or making, using, etc;) a patented article, is not exercising any power conferred by the patent statute. That is a. fortiori true of a non-exclusive licensee, like the licensee in General Talking Pictures, which has no exclusivity protections at all. Thus, although the governmentâs assertion that âlicensees stand in patenteesâ shoesâ in' sharing certain patent-granted rights is true in a significant respect as to exclusive licensees, U.S. Br. 8, it is not true as to non-exclusive licenseesâlike the licensee in General Talking Pictures. Accordingly, a patenteeâs ability to preserve its patent rights (rights to exclude) by arranging for sales to be made by a non-exclusive licensee, like the Transformer Company, cannot rest oh a premise that âlicensees exercise a portion of the patenteeâs rights.â U.S. Br. 8. Bloomer v. McQuewan, on which the government relies from the outset of its argument, U.S. Br. 5, does not say otherwise. The government states that in Bloomer v. McQuewan âthe Court explained that a purchaser of a patented article âstands on different groundâ than one who obtains a license under the patent,â because the latter â âobtains a share in the monopoly ... derived from, and exercised underâ the patent.â Id. (emphasis added) (quoting Bloomer v. McQuewan, 55 U.S. (14 How.) at 549 ). But the. Court did not say that about simply âone, who obtains a license,â like the licensee.in General Talking Pictures. What the Court said in Bloomer v. McQuewanâimmediately after the sentences stating that the patent gives the patentee only âthe right to excludeââis that âwhen [the patentee] sells the exclusive privilege of making or vending [the invention] for use in a particular place,â the privilege ends with the patent that creates it. 55 U.S. (14 How.) at 549 (emphasis added). That statement is about the exclusivity right, i.e., the right to exclude others, which an assignee or exclusive licensee obtains in whole or in part. By its terms, and consistent with the just-stated definition of the limited nature of the patent franchise, it says nothing about a non-exclusive licensee obtaining a share *747 in the monopoly. The Court then contrasted, as âstand[ing] on different ground,â one who simply buys a patented device, which â[t]he inventor might lawfully sell to him, whether he had a patent or not, if no other patentee stood in his way.â Id. The buyer, as mere owner and user of the device, lacks any patent-granted right to exclude, i.e. âexercises no rights created. by the act of Congress,â so whatever rights it has do not end with the patentâs expiration. Id. The distinction was not between a sale from a patentee and a sale from a bare (non-exclusive) licensee. In short, General Talking Pictures cannot be distinguished on the doctrinal basis the government invokes. d. No Supreme Court decision compels adoption of the distinction the government urges. As Impression noted at oral argument, it is undisputed that no Supreme Court decision has involved a 'single-use/ no-resale restriction on a patenteeâs sale and found the restriction insufficient to preserve the patenteeâs infringement rights against a buyer engaging in the forbidden reuse or resale. More generally, no Supreme Court precedent denies a patentee.the ability to preserve its § 271 rights, by a clear communication of an otherwise-permissible restriction, when it sells the patented article itself, just as the patentee may do, under the General Talking Pictures principle, when contracting out the making and selling of the patented article. We have already noted the limitations on what, was presented and decided in the Bloomer cases (rejecting implied temporal use restrictions) and Adams (rejecting implied geographic use restrictions). In 1881, the Supreme Court summarized the relevant law: âThe right of the owner of a patented machine, without any conditions attached to his oumership, to continue the use of his machine during; an extended term of the patent, is well settled.â In re Paper-Bag Cases, 105 U.S. at 770-71 (emphasis added) (citing Bloomer v. McQuewan, Mitchell, Adams, and Chaffee v. Boston Belting Co., 63 U.S. (22 How.) 217 , 16 L.Ed. 240 (1859)). In so stating the law, in terms that tied exhaustion to the absence of conditions, the Paper-Bag Cases Court cited at least one case, Adams , involving a sale made by an assignee (a patentee under patent law). 10 The Court in Hobbie v. Jennison, 149 U.S. 355 , 13 S.Ct. 879 , 37 L.Ed. 766 (1893), described and followed the holding of Adams that, when an assignee sold machines, âthere was no restriction on their use to .be implied, for, the benefit of the patentee or his assignees or licensees.â 149 U.S. at 362 , 13 S.Ct. 879 (emphasis added). The Court held that an unrestricted sale of pipe in Michigan by the Michigan assignee (Jennisonâs firm), with full rights to sell it, allowed the buyer , to use it in Connecticut free of the patent rights belonging to the Connecticut assignee (Hobbie). In its 1895 decision in Keeler , the Court applied its existing precedents, especially Adams and Hobbie . The Massachusetts assignee (Standard Folding-Bed) sued Keeler when he bought patented beds from the Michigan assignee, subject to no restrictions, and brought them to Massachusetts for sale. 157 U.S. at 660 , 15 S.Ct. 738 (stating facts - before opinion starts). The Court noted that in Adams the patented articles âwere sold to [Burke] without condition or restriction,â id. at 663 , 15 *748 S.Ct. 738 , and it concluded that Adams âwas applicable,â id. at 665, 15 S.Ct. 738 . The Court also quoted as defining the law (in this patentee-sale case) the passage set out above from Mitchell (a licensee-sale case). Id. at 663 , 15 S.Ct. 738 . In any event, with no restriction on the sale present, the Court followed Adamsâ refusal to find one implied by the patent law. It was against that background that the Court' then notecl: âWhether ĂĄ patentee may protect himself and his assignees by special contracts brought home to the purchasers is' not a question before us,â but âsuch a question would arise as a question of contract, and not as one under the inherent meaning and effect of the patent laws.â Id. at 666 , 15 S.Ct. 738 (emphasis added). That language lends itself to use in the governmentâs argument that sale restrictions never preserve patent rights, but give only contract rights. But even in Keeler the language does not compel that reading, and the later decisional lawâmost importantly, General Talking Picturesâ undermines the contract-only interpretation. Thus, in Keeler itself, the word âinherentâ naturally ties the language to the modest point based on Adams that actually decided Keeler : with no contract restriction as part of the sale, an implied one cannot be found in patent law itself. That says nothing about the irrelevance of an actual contract restriction to preservation of patent rights. Moreover, in the licensee-sale context, General Talking Pictures establishes that contract restrictions can indeed preserve a patenteeâs infringement rights and arĂ© not merely enforceable under contract law: General Talking Pictures, which had no contract with the patentees, was held liable for patent infringement, not breach of any contract with the patentees. Notably, then, in Quanta , a licensee-sale case like General Talking Pictures, the Court quoted the language from Keeler after discussing General Talking Pictures (without a hint of disapproval) and concluding that, as in Keeler, Adams, and Hobbie , there simply was no patentee-imposed contractual restriction applicable to the sales at issue. 553 U.S. at 637 n. 7, 128 S.Ct. 2109 . And in the present case, as in General Talking Pictures, there is no reason to think that the patentee has a contract remedy available as a substitute for patent infringement: as far as the record before us shows, Lexmark has no contractual relationship with Impression. In United States v. General Electric Co., 272 U.S. 476 , 47 S.Ct. 192 , 71 L.Ed. 362 (1926), the Supreme Court rejected the governmentâs antitrust challenge to (among other things) General Electricâs licensing of Westinghouse to make and sell patented lamps under terms controlling resale prices. See Fed. Trade Commân v. Actavis, Inc., â U.S. â, â, 133 S.Ct. 2223, 2232 , 186 L.Ed.2d 343 (2013) (describing General Electric). In making a general point about patentee sales (not involved in the- case), the Court said: âIt is well settled, as already said, that where a patentee makes the patented article, and sells it, he can exercise no future control over what the purchaser may wish to do with the article after his purchase. It has passed beyond the scope of the patenteeâs rights.â 272 U.S. at 489 , 47 S.Ct. 192 (citing cases). We read that language to deem âsettledâ only what was. settled in the cited precedentsâa patenteeâs sales without restrictions exhaust patent rights in the item sold. The cited cases are Adams, Bloomer v. McQuewan, Hobbie, Keeler, and Mitchell. They do not go beyond that proposition. The prominent exhaustion decisions from the 1910s do not make the patentee-sale/licensee-sale distinction urged by the *749 government here. After A.B. Dick adopted a broad principle that preserved a paten-teeâs patent-law rights against restriction-violating sale, use, etc., even if the restrictions were otherwise unlawfulâin A.B. Dick, a tie-in requiring purchase of unpatented productsâthe Supreme Court repudiated A.B. Dickâs broad principle and held particular restrictions improper and therefore not effective at preserving patent rights against actions contrary to those .restrictions. It did so as to tie-ins in Motion Picture Patents , overruling A.B. Dick and relying on the 1914 Clayton Act, 38 Stat. 730 . See 243 U.S. at 517, 37 S.Ct. 416 . And it did so as to resale price maintenance in Bauer, Straus, and finally Boston Store, relying on the judicially adopted per se antitrust condemnation of that practice in Dr. Miles Medical Co. v. John D. Park & Sons Co., 220 U.S. 373 , 31 S.Ct. 376 , 55 L.Ed. 502 (1911), overruled by Leegin Creative Leather Prods., Inc. v. PSKS, Inc., 551 U.S. 877 , 127 S.Ct. 2705 , 168 L.Ed.2d 623 (2007). See Bauer, 229 U.S. at 12 , 33 S.Ct. 616 ; Straus, 243 U.S. at 498 , 37 S.Ct. 412 ; Boston Store, 246 U.S. at 21 , 38 S.Ct. 257 . But the Court did not rule that all restrictions on a pat-enteeâs sale were ineffective to preserve the patenteeâs patent-law rights'. Instead, it called for an inquiryâin accord with what Mallinckrodt later saidâinto whether a patenteeâs restrictions were otherwise improper, as by âextend[ing] the scope of its patent monopoly.â Motion Picture Patents, 243 U.S. at 516 , 37 S.Ct. 416 . And the Court did not adopt the line the government suggests between patentee sales and licensee sales. In its 1942 decision in Univis , the Supreme Court rejected a patent-based defense to the governmentâs antitrust challenge to resale-price-maintenance restrictions in the licensing and selling of eyeglass lenses. The Court said that it had two questions before it: first, whether the restrictions were âexcluded by the patent monopoly from the operation of the Sherman Act,â i.e., whether if the restrictions were illegal under the Sherman Act, they were saved by the patent law; and second, whether the restrictions were illegal under the Sherman Act. 316 U.S. at 243 , 62 S.Ct. 1088 . The Court said no on the first question, id. at 249-52 , 62 S.Ct. 1088 , and yes on the second, id. at 252-54 , 62 S.Ct. 1088 . The second answer (regarding the substance of antitrust law) is immaterial here, and the first answer is in accord with Mallinckrodtâs rulingâ-which expressly recognizes that, as Univis held, restrictions that are otherwise unlawful do not preserve patent rights. Moreover, although some language in Univis , like language in other decisions in the area, can be taken out of context and read as going beyond the specific restrictions involved, id. at 249-51 , 62 S.Ct. 1088 , the most the Court ruled, even as to patent law all by itself, was that a vertical price-control restriction was ineffective to preserve patent rights after sales of articles embodying the patents. While Univis is controlling on whĂĄt it decided pn the issues before it, we do not think- it appropriate to give broad effect to language in Univis , taken out of context, to support an otherwise-unjustified conclusion here on a question not faced ..there. And that is particularly so today, given that the Univis opinion relied in part on strongly restrictive patent-misuse decisions that were repudiated by Congress after Univis was decided. 11 *750 Most pointedly for present purposes, Univis does not support the distinction between patentee sales and licensee sales the government urges in this case. The Univis ease was decided just four years after General Talking Pictures, which confirmed that a patentee may preserve its patent rights by imposing otherwise-lawful restrictions on sales by its manufacturing licensees. -Yet Univis says nothing to limit that prominent, recent ruling.' Moreover, as we have already noted, Univis is explicit that it made no difference to the Courtâs analysis whether the patentee (Univis Corporation) or the manufacturing licensee (Univis Lens Company) was doing the selling: the Court stated that the two companies âmay for the purposes of this suit be treated as though they were a single corporation.â 316 U.S. at 243 , 62 S.Ct. 1088 ... The Court also stated its point about the particular sale as equally applicable to a â[s]ale of a lens blank by the patentee or by his licensee.â Id. at 249, 62 S.Ct. 1088 (emphasia added). 12 For the foregoing reasons, we think that the best lesson to draw from the Supreme Courtâs precedents, as applied to the question before us, is that a patentee may preserve its patent rights by otherwise-proper restrictions when it makes and sells patented articles itself and not only when it contracts out manufacturing and sales. 3 We see ho basis for a different conclusion in Lord Cokeâs description in 1628 of a British common-law principle, as quoted in Kirtsaeng, 133 S.Ct. at 1363 . Lord Coke described what British courts, in the absence of an overriding legislative prescription, would treat as an impermissible anti-alienation restriction on a sellerâs disposition of â âhis whole interestâ â in a chattel. Id. Lord Cokeâs formulation was part of the judicial formulation of background law for personal property generally, and it neither addressed possible differences among particular kinds of personal property nor suggested' that a judicial rule would override specific legislative grants. Lord Cokeâs formulation was a pertinent reference point in Kirtsaeng , because, as we have rioted, the copyright statute, 17 U.S.C. § 109 (a), states aâ rule that itself over-rides the otherwise-applicable statutory bars on infringement and importation arid grants of exclusive rights. In stating 'one common-law jurisdictionâs general judicial policy at one time toward anti-alienation restrictions, Lord Cokeâs description confirmed that the otherwise-supported reading of § 109(a) fit a legal tradition. Lord Cokeâs quote does not purport to .address the effect of a legislative prescription of broad rights to control sale and use. 13 That is what is present in the Pat *751 ent Act, but . not the copyright law. Sections 154(a) and' 271(a) legislatively establish a patenteeâs rights over sale and use, without subservience to a superseding grant of rights to one who owns a particular article. They grant those rights separately as to making, selling, using, etc., thus recognizing different sticks in the bundle of rights; they grant, them without an exception keyed to the patenteeâs prior ownership of a particular article embodying the invention; and they grant them unless, as relevant here, the patentee confers âauthority.â Lord Cokeâs quote does not address the. Patent Act situation or suggest that federal courts may treat a denial of authority as a conferral of authority. Different policy choices can readily be made and justified in this area, even as to background rules applicable to personal property generally. Some of the. numerous, distinct common-law jurisdictions, including Lord Cokeâs, have departed at various times from the background rule expressed by Lord Coke. See De Mottos v. Gibson, (1859) 45 Eng. Rep. 108 (Ch. App.); Waring v. WDAS Broad. Station, Inc., 327 Pa. 433 , 194 A. 631, 637-38 (1937); Metro. Opera Assân v. Wagner-Nichols Recorder Corp., 199 Misc. 786 , 101 N.Y.S.2d 483, 494-95 (N.Y.Sup.Ct.1950), affâd, 279 A.D. 632 , 107 N.Y.S.2d 795 (N.Y.App.Div.1951); Pratte v. Balatsos, 99 N.H. 430 , 113 A.2d 492, 494-95 (1955); Nadell & Co. v. Grasso, 175 Cal.App.2d 420 , 346 P.2d 505, 509-10 (1959); Clairol Inc. v. Cosmetics Plus, 130 N.J.Super. 81 , 325 A.2d 505, 508 (N.J.Sup.Ct.1974); Zechariah Chafee, Jr., Equitable Servitudes on Chattels, 41 Harv. L.Rev. 945, 1007-13 (1928); Zechariah Chafee, Jr., The Music Goes Round and Round: Equitable Servi-tudes and Chattels, 69 Harv. L.Rev. 1250, 1254-56 (1956); Glen O. Robinson, Personal Property Servitudes, 71 U. Chi. L.Rev. 1449, 1455-60 (2004). In 1918, then-Dean Harlan Fiske Stone wrote: âThe tendency in the United States has been to apply the doctrine of restrictive agreements to personal property when not regarded as an unlawful restraint of trade or in violation of public policy.â The Equitable Rights and Liabilities of Strangers to a Contract, 18 Colum. L.Rev. 291, 310 (1918). In any event, and more specifically, whatever considerations might'-go into a jurisdictionâs choice as to the background rule for personal property in general, lawmaking authorities may reasonably make different choices for particular kinds of property. Notably, as to intellectual property in its various forms, .Congress, implementing the Constitution, has long deemed it important to incentivize creation and disclosure through grants to the creator of rights to exclude others for a time, the duration and scope based on features of the particular kind of intellectual property (e.g., patent terms are much shorter than copyright terms). The Patent Act expressly .does so regarding patent rights, specifically giving separate rights to exclude others from making, using, selling, etc. That overriding legislative prescription removes the patented-article sale from the scope of Lord Cokeâs 1628 description of his countryâs general judicially fashioned property law, as British tribunals, recognized long ago. See A.B. Dick, 224 U.S. at 42-43 , 32 S.Ct. 364 (quoting the judicial committee of the Privy Council, speaking through Lord Shaw in 1911: âthe general doctrine of absolute freedom of disposal of chattels of an ordinary kind is, in the case *752 of patented chattels, subject to the restriction that the person purchasing them, and in the knowledge of the conditions attached by the patentee, which knowledge is clearly brought home to himself at the time of sale, shall be bound by that knowledge and accept the situation of ownership subject to the limitations. These limitations are merely the respect paid and the effect given to those conditions of transfer of the patented article which the law, laid down by statute, gave the original patentee a power to impose.â) (quoting Natâl Phonograph Co. v. Menck, [[1911] A.C. 336, 349 (P.C.1911 appeal taken from Aus.)]); Incandescent Gas Co. v. Cantelo, [1895] 12 R.P.C. 262, 264 (Eng.). In short, notwithstanding Lord Cokeâs description of English general personal-property judge-made law, the patent-specific statutory analysis must govern here. 4 Finally, following the analytical method of Kirtsaeng , we consider what we can reliably gauge about the likely real-world consequences of one answer or another to the exhaustion question presented here. As indicated at the front of this opinion, we have received numerous amicus briefs making competing arguments, with varying degrees of reliable factual support, for the effect of Mallmckrodt on their interests or the interests they promote. We cannot assess those contentions and make policy choices in the way Congress can. We can say only that the amicus presentations give us no reason to depart from the application of § 271 we derive from the statute and precedent. In particular, we see no basis for predicting the, extreme, lop-sided impacts the Court found plausible in Kirtsaeng in different circumstances. Mallinckrodt has been the governing case law since 1992 and has been reiterated in subsequent precedent. And -yet we have been given no reliable demonstration of widespread problems not being solved in the marketplace. Given General Talking Pictures, the only question is about patenteesâ ability to do for their own sales what- they already can do by contracting out their manufacturing and sales. Regarding the specific scenario- we are addressing todayâin which the patentee has sought to preserve its-patent rights by conditioning its first sale on a single-use/no-resale restriction of which the accused infringer had adequate notice at the time of purchaseâwe have been given no proof of a significant problem with enforcing patent rights. At the same time, the conduct challenged here can have benefits. Lexmarkâs Return Program provides customers an immediate up-frorit benefit: a choice between two options, one offering them a lower price in exchange for the single-use/no-resale limitation. And a company in Lexmarkâs position could have a plausible legitimate interest in not having strangers modify its products and introduce them into the market with the quality of modifications (including ink refills) not subject to Lexmarkâs control: lower quality of remanufactured cartridges could harm Lexmarkâs reputation. See Chafee, 41 Harv. L.Rev. at 946-47. A medical supplier in Mallinekrodtâs position plausibly may have similar reason to believe that reuse, when not under its own control, carries a significant risk of poor or even medically harmful performance, to the detriment of its customers and its own reputation. Such interests are hardly unrelated to the interests protected by the patent lawâthe interests both of those who benefit from inventions and of those who make risky investments to arrive at and commercialize inventions. See Robinson, 71 U. Chi. L.Rev. at 1480-1515 (surveying rea *753 sons for restrictions, particularly in intellectual-property area). We do not have a record on such interests in this case, as Impression has not claimed that the restrictions at issue.violate antitrust, patent-misuse, or similar constraints. And it is not our function to assess the strength of such interests against those which might pull the other way. Nor can we fairly assume the illegitimacy of the conduct here. Such an assumption would run counter to the large-scale changes in antitrust law and patent-misuse law, âą especially over the last four decades, that have displaced the strict condemnation" of various vertical restrictions that characterized both areas of law in the first half of the twentieth century. Thus, the Supreme Court broadly held that non-price vertical restraints are to be judged by a rule of reason. See Continental T.V., Inc. v. GTE Sylvania Inc., 433 U.S. 36, 57-59 , 97 S.Ct. 2549 , 53 L.Ed.2d 568 (1977), overruling United States v. Arnold, Schwinn & Co., 388 U.S. 365 , 87 S.Ct. 1856 , 18 L.Ed.2d 1249 (1967). The Court abandoned its âstrong disapproval of tying arrangementsâ by insisting on market power in the tying product as a precondition to condemnation. See Illinois Tool Works Inc. v. Independent Ink, Inc., 547 U.S. 28, 35-38 , 126 S.Ct. 1281 , 164 L.Ed.2d 26 (2006); Jefferson Parish Hosp. Dist. No. 2 v. Hyde, 466 U.S. 2 , 104 S.Ct. 1551 , 80 L.Ed.2d 2 (1984). It overturned both the per se ban on vertical agreements setting maxinium resale prices, State Oil Co. v. Khan, 522 U.S. 3, 7 , 118 S.Ct. 275 , 139 L.Ed.2d 199 (1997), overruling Albrecht v. Herald Co., 390 U.S. 145 , 88 S.Ct. 869 , 19 L.Ed.2d 998 (1968), and the per se ban on vertical agreements setting minimum resale prices, Leegin Creative Leather Prods., Inc. v. PSKS, Inc., 551 U.S. 877, 900-01 , 127 S.Ct. 2705 , 168 L.Ed.2d 623 (2007), overruling Dr. Miles Medical Co. v. John D. Park & Sons Co., 220 U.S. 373 , 31 S.Ct. 376 , 55 L.Ed. 502 (1911). ' The absence of a general basis for finding market harm from vertical restrictions is recognized specifically in the" patent area, tod. Field-of-use restrictions in patent licenses have long been common, as Mallinckrodt points out and General Talking Pictures shows, In 1988, building on an initial relaxation of patent-misuse standards in 1952, Congress made clear that tying arrangements involving a non-patented product do not constitute patent misuse where the patentee lacks market power. 35 U.S.C. § 271 (d)(5). The Supreme Court, citing that determination, subsequently overturned its own- longstanding antitrust presumption that patent (and copyright) owners have market power. Illinois Tool Works, 547 U.S. at 41-42 , 126 S.Ct. 1281 . And the two federal antitrust agencies have recognized that restrictions in intellectual-property licenses can be procompetitive.' See U.S. Depât of Justice & Fed. Trade Commân, Antitrust Guidelines for the Licensing of Intellectual Property § 2.3 (1995) (âField-of-use, territorial, and other limitations on intellectual property licenses may serve procompeti-tive ends by allowing the licensor to exploit its property as efficiently and effectively as possible.â). For those reasons, we see no basis for departing from the legal analysis set out above. A patentee already may preserve its patent rights against downstream buyers (with notice) through otherwise-lawful restrictions, by licensing others to make and sell its patented articles. We conclude that the law does not forbid the patentee to do the same when making and selling the articles itself. III The second question presented-to us is whether Lexmarkâs sales of its cartridges *754 abroad conferred authority on its buyers, and derivatively on Impression, to import the cartridges into, and sell and use them in, the United States, which would be infringing acts in the absence of authorization. The question wasâ decided by the district court, and is presented here, on the premise that Lexmark made the foreign sales without communicating a reservation of U.S. patent rights. And the question is presented only as an exhaustion question, because Impression did not press any implied-license defense, despite the fact that Quanta made clear that the doctrines are distinct. . The absence of an implied-license defense in this case sharpens the definition of the issue presented. ..There is no doubt that a U.S. patentee, when selling a U.S.patented article .abroad, could give the buyer permission, expressly or by implication from the circumstances, to import the purchased article into the United States and sell and use it here. Such a license would make those acts non-infringing. The question for decision is whether, if there is no proof of any such license (express or implied), there is nonetheless, a legal rule that such a foreign sale confers authority on the overseas buyer to import the patented article-into the United States and sell and use it here. If there is such a legal rule of authorization, the next question is whether the authorization is conclusive, effective even in the face of the U.S. patenteeâs reservation of U.S. rights, or only presumptive, with: the U.S. patentee able to reserve its U.S. rights if it can demonstrate with adequate certainty that it has. taken the steps needed, to. do so. We conclude, as we did in Jazz Photo, that there is no legal rule that U.S. rights are waived, either conclusively or presumptively, simply by virtue of a foreign sale, either made or authorized by a U.S. patentee. The government, we note, agrees that a conclusive-exhaustion rule should be rejected but argues for a presumptive-exhaustion rule regarding a U.S. patenteeâs foreign sales. In the governmentâs view, a U.S. patentee can reserve its U.S. rights when selling abroad (but not if selling domestically, under the governmentâs view that Mallinckrodt is wrong). We conclude that neither a conclusive- nor a presumptive-exhaustion rule is legally justified. A This courtâs 2001 decision in Jazz Photo reviewed the International Trade Commissionâs finding that Jazz Photo (and others) infringed, patents of Fuji Photo Film by importing refurbished disposable cameras originally sold by or with the authorization of Fuji Photo. 264 F.3d 1094, 1098 . Two groups of cameras sold by or with the authorization of Fuji Photo were at issue: those sold initially in the United States, refurbished abroad, and imported back into the United States; and those initially sold abroad, refurbished abroad, and imported into the United States. This court drew different conclusions about infringement regarding those two groups of imported cameras. Disagreeing with the Commission on the central issue in the ease, the- court held that a specifically described set of refurbishment changes (involving insertion of new film into the used casings) were mere repairs, not reconstructions that amounted to creation of new articles. Id. at 1102-07 . Therefore, the court ruled, for the âused cameras whose first sale was in the United States with the. patenteeâs authorization,â and that were subjected to only those changes (with disclosure to the Commission), Jazz Photoâs importations were not infringing: repair maintained the identity of the article initially sold, and the domestic sale exhausted the patenteeâs rights in *755 the article.sold (but not in nĂ©wly created articles). Id. at 1098-99, 1102-05 (discussing, for example, Aro I, 365 U.S. at 346 , 81 S.Ct. 599 ); see Bowman, 133 S.Ct. at 1766 . As to those used cameras, the court reversed the Commission. 264 F.3d at 1099 . The court held, however, that a different result was required for any of the imported cameras that previously had been âsold only overseas,â even if the changes in them amounted only to repair. Id. at 1105 (emphasis added). Relying on Boesch v. Graff, 133 U.S. 697, 701-03 , 10 S.Ct. 378 , 33 L.Ed. 787 (1890), the court ruled that âUnited States patent-rights are not exhausted by products- of foreign provenance,â i.e., products previously sold- only abroad. 264 F.3d at 1105 . Thus,. the courtâs non-infringemĂ©nt ruling (and reversal of the Commission) applied only to used cameras âfor which the United States patent right has been exhausted by first sale in the United Statesâ and whose refurbishing was limited as described. Id. The imported cameras not previously sold in the United States, in contrast, âare not immunized from infringement of United States patents by the. nature of their refurbishment.â Id. There is no suggestion that Jazz Photo argued that Fuji Photo had expressly or impliedly licensed importation in making or authorizing the foreign sales, and the court said nothing to foreclose such a defense to infringement. Accordingly, as to cameras âwhose prior sale was not in the.United States,â the court affirmed the Commissionâs, infringement finding and remedies against Jazz Photo. Id. at 1111 . The court followed Jazz Photo in Fuji Photo Film Co., Ltd. v. Jazz Photo Corp., 394 F.3d 1368, 1370 (Fed.Cir.2005), which affirmed a district courtâs judgment of infringement by Jazz Photo (and others) in favor of Fuji Photo in litigation involving the same dispute as Jazz PhotĂł. This court rejected Jazz Photoâs argument for exhaustion, as to first sales made abroad. The court in Fuji Photo explained that in Jazz Photo âthis court expressly limited first sales under the exhaustion doctrine to those occurring within the- United States.â Id. at 1376. Accordingly, exhaustion of U.S. rights is not triggered by â[t]he pat-enteeâs authorization of an international first sale.â Id: In Fuji Photo, as in Jazz Photo, the court did not foreclose any argument about express or implied licenses conferred in particular foreign sales. In short, âthis court has'held since 2001 that the foreign sale of a U.S.-patented article, when the âsale is either made or authorized by the U.S. patentee, does not, standing alone, confer on the buyer âauthorityâ to import the item into the United States or to sell and use it here, and so does not save- those acts from being infringing under § 271(a). See Ninestar Tech. Co. v. Intâl Trade Commân, 667 F.3d 1373, 1378 (Fed.Cir.2012). 14 The court has *756 not curtailed the ability of an accused in-fringer to show that the patentee conferred such authority by words or implications. Exhaustion cannot rest on a foreign first sale, but an express or implied license might be found based on the circumstances of particular foreign sales. B The Supreme Courtâs decision in Kirt-saeng does not undermine the no-exhaustion conclusion of Jazz Photo. In Kirtsaeng , the Court interpreted § 109(a) of the Copyright Act, which states that âthe owner of a particular copy ... lawfully made under this title ... is entitled, without the authority of the copyright owner, to sell or otherwise dispose of the possession .of that copy....â 17 U.S.C. § 109 (a). The Court held that § 109(a)âs guarantee is not limited- to copies manufactured in the United States, but applies regardless of the place of manufacture, as long as the maker of the copies had permission from the copyright owner to make them. Kirtsaeng, 133 S.Ct. at 1355-71 . For various reasons, that ruling does not answer the question presented under the Patent Act. Kirtsaeng says nothing about patent law;- and it does not address, even in the context of copyright law, the exhaustion question presented by the Patent Act. Whether a sale constitutes a grant to a buyer of (conclusive or presumptive) âauthorityâ to engage in otherwise-prohibited acts of importation, sale, and use is the question here. It is not the question presented by the Copyright Act. That Act contains no right to exclude anyone from âuse,â and § 109(a) of the Act expressly overrides the copyright holderâs rights to exclude from importing or selling copies, permitting acts âwithout the authorityâ of the rights ownerâin circumstances that undisputedly have nothing to do with the place of sale. The Court in Kirtsaeng merely interpreted- § 109(a) and resolved the dispute about whether the place of manufacture matters under § 109(a), holdingâfor a number of reasons âtaken togetherââthat it does not. 133 S.Ct. at 1358, 1371. The Kirtsaeng question thus is several steps removed from the question presented under the Patent Act, which requires a quite different analysis. To elaborate: In Kirtsaeng , the Supreme Court did not advert to the foreign-exhaustion issue under patent law. Nor did it cite, even to distinguish, its own leading case on exhaustion and foreign sales in the patent area, namely, Boeschâ which has no counterpart in the copyright area. More generally, the Court nowhere relied on the wealth of exhaustion cases in the patent. area. The absence of such references to patent law, even at a general level, reinforces the need for a distinct patĂ©nt-law analysis. The Court has long recognized the distinctness of the copyright and patent regimes and observed that particular questions require separate analysis for each body of law. For example, the Court has noted that the patent right is broader in scope than the copyright right in at least *757 one important respect: the patent statute gives a right to exclude others from âuse,â whereas the copyright statute does not. Bauer, 229 U.S. at 13-14 , 33 S.Ct. 616 . In a decision relied on in -Kirtsaeng, 133 S.Ct. at 1363, the Court stated more generally that copyright-law conclusions and patent-law conclusions do not necessarily' align, so that aj conclusion about copyright law does not automatically carry over to patent law. Bobbs-Merrill, 210 U.S. at 345-46 , 28 S.Ct. 722 . In Sony Corp. of America v. Universal City Studios, Inc., the Court, noting that patent and copyright law âare not identical twins,â required âcaution ... in applying doctrine formulated in one area to the other.â 464 U.S. 417 , 439 n. 19, 104 S.Ct. 774 , 78 L.Ed.2d 574 (1984). In Eldred v. Ashcroft, the Court explained that âpatents and copyrights do not entail the same exchange.â 537 U.S. 186, 216 , 123 S.Ct. 769 , 154 L.Ed.2d 683 (2003). The answer to a particular question therefore requires analysis of the specifics of the relevant statute. The Court in Kirtsaeng conducted just such an analysis for the copyright-law question before it. It analyzed a copyright-specific text, namely, § 109(a), and stressed that it was determining âthe best reading of § 109(a).â 133 S.Ct. at 1370 (emphasis in original). See id. at 1371 (âwe do no more here than try to determine what decision Congress has takenâ); id. at 1357 (âWe must decide whether the words âlawfully made under this titleâ restrict the scope of § 109(a)âs âfirst saleâ doctrine geographically.â). And the structure of the Courtâs analysis confirms the primacy of the statutory text: The Court began its analysis with an extensive consideration of the text of § 109(a) 133 S.Ct. at 1358-60. It concluded that â[t]he language of § 109(a) says nothing about geographyâ; reading âmade under this titleâ to mean made with the rights holderâs permission, not to mean made in the United States, âis simple, ... promotes a traditional copyright objective (combatting piracy), and ... makes word-by-word linguistic senseâ?;''While the made-in-the-United-States- interpretation âbristles with linguistic difficulties.â 133 S.Ct. at 1358. The Court then found various contextual, historical, and practical considerations to support that textual conclusion. Id. at 1358-62. The text construed in Kirtsaeng has no counterpart in the Patent Act. And that text presents a sharply different question from the statutory question presented by the Patent Act. By its terms, far from calling for a determination of whether any kind of sale constitutes the conferring of. âauthorityâ from the rights holder, § 109(a) defines the circumstances (ownership of a copy lawfully made) that, when present, give a copy owner a right to sell or dispose of the owned copy âwithout the authority of the copyright owner.â 17 U.S.C. § 109 (a) (emphasis added). Moreover, as we have explained, and as the Court ruled in Kirtsaeng and Quality King, the Copyright Act makes the provisions on exclusivity, infringement, and importation all subservient to § 109(a). In the Copyright Act, the § 109(a) grant to copy owners overrides other requirements of authority from the rights holder, specifically those governing importation and sale. That is not so in the Patent Act, under which exhaustion textually- can be nothing but an answer to a statutory question of when a patentee has, by a sale, conferred such authority. Section 109(a)âs language, which gives an owner ĂĄn entitlement to resell âwithout the authority of the copyright owner,â does not make that entitlement depend on an assessment of whether a first sale made or authorized by the copyright holder confers resale authority on the buyer. The right to resell is given to the âownerâ of an article âlawfully madeâ under the Act. The *758 âownerâ languageâwhose meaning was not at issue in Kirtsaengâsays nothing about where ownership is acquired and does not require a prior sale at all: a copy made by the person who owns it, as long as the making was authorized, is within § 109(a)âs language. See 133 S.Ct. at 1361 (discussing 17 U.S.C. § 115 ); 2 Melville B. Nimmer & David Nimmer, Nimmer on Copyright § 8.12[B][3][c] (2015). Even when ownership comes from a sale, moreover, the provision prescribes the result for the ownerâs resale entitlement in terms not dependent on âauthority from the copyright holder but as independent of any such authority. And' the remaining requirement stated by the language at issue in Kirtsaengââlawfully made under this titleââundeniably refers only to the manufacture of the copy and whether that manufacture was lawful. That language, like the âownerâ language, leaves ño place for consideration of the location of a prior sale (if there was one), which is the issue here. Years before, deciding Kirtsaeng , the Court in Quality King had made clear that the language of § 109(a) makes sale location irrelevant: under that language, âthe owner of. goods lawfully made under the Act is entitled to the protection of the first sale doctrine in an action in a, United States court even if the first sale occurred abroad.â 523 U.S. at 145 n. 14, 118 S.Ct. 1125 . The Court in Kirtsaeng confirmed the point. 133 S.Ct. at 1371 (noting the âholding in Quality King that § 109(a) is a defense in U.S. courts even when âthe first sale occurred abroadâ â). Not surprisingly, neither party in Kirtsaeng argued that the provision could be read to refer to the sale location. 15 And the Court readily dismissed a safe-location view as ânot defensibleâ and facing âlinguistic and other hurdles that ... are insurmountable.â Id. at 1366 . With sale location off the table, the dispute in Kirtsaeng was simply between two different interpretations-of-the statutory reference to manufacture (âlawfully made under this titleâ)âwhether it referred to where manufacture occurred (the âgeographicâ interpretation) or to whether the manufacture was lawful under the standards of-the Copyright Act (e.g., with the copyright ownerâs permission, as opposed to pirated). For that reason, whether an âimplied licenseâ would arise from sales in some" circumstances was immaterial to the statutory question being debated, and the Court did not comment on that notion, despite its mention in the dissent, 133 S.Ct. at 1389 & n. 25 (Ginsburg, J., dissenting), and the governmentâs brief, Brief for the United States as Amicus Curiae Supporting Respondent at 21, Kirtsaeng (No. 11-697), 2012 WL 3902599 . In short, given the nature of the question framed by § 109(a), the Court in Kirtsaengâ did not have occasion to decide, and did not decide, whether a foreign sale (by or authorized by the U.S. rights hold *759 er) is properly treated as conferring on the buyer, conclusively or presumptively, the authority to resell. The Court did not decide, even for copyrights, the question presented here for patents. The nature of the statutory question decided in Kirtsaeng also shows why the Courtâs discussion of considerations supporting its textual conclusion cannot be transposed to the patent-law setting at issue here. The discussion of the statutory history and certain provisions of the Copyright Act, 133 S.Ct. at 1360-62, 1370, is statute-specific. And the Courtâs discussion of the absence of any constitutional history or congressional action permitting market division was limited to the copyright area. Id. at 1370-71. Compare 35 U.S.C. § 261 (patentee may assign rights âto the whole or any specified part of the United Statesâ). Similarly, the Courtâs discussion of Lord Cokeâs 1628' description of his countryâs general judicial personal-property law, id. at 1363-64 , is inapplicable here. That description, as already explained, is apt background for a provision, like § 109(a), that is superior to any legislative grant of rights that cover post-purchase activities of a buyer. The Patent Act contains no such override of the Actâs grant of rights to patentees. And the Court in Kirtsaeng drew from Lord Cokeâs description only a general recognition of âthe importance of leaving buyers of goods free to compete with each other when reselling or otherwise disposing of those goods,â adding that American antitrust law recognizes a similar point. 133 S.Ct. at 1363. That observation merely confirms that the result of the § 109(a) analysis is sensible because it fits one policy found in aspects of American and British law containing no specific statutory override. And the Court then cited Bobbs-Merrill , which construed the pre-1909 copyright statute not to contain an override in the circumstances at issue, 210 U.S. at 349-51, 28 S.Ct. 722 , and noted that the next year, Congress adopted that result by enacting the statutory predecessor of § 109(a). Kirtsaeng, 133 S.Ct. at 1363-64 . In addition, the Courtâs account of the potential real-world consequences of the statutory â interpretation it was rejecting, though it mentions sale location a few times, is pervasively tied to the issue actually in disputeâwhether' a foreign manufacture location makes § 109(a) inapplicable. 133 S.Ct. at 1364-67. Under that interpretation, the Court stated, the rights holder would have âpermanentâ control, id. at 1362, âperpetual downstream control,â id. at 1371, of copies circulating in the United States as long as those copies had been made abroad: § 109(a) would not kick in to give resale rights to purchasers of those copies even if the copyright holder sold the article in the United States. See also id. at 1366 (referring to âthe^ absurd result that the copyright owner can exercise downstream control even when it authorized the import or first saleâ). As the government notes to us, the Patent Act, which lacks a provision like § 109(a), is quite different: âthere is no concomitant risk of âperpetual downstream controlâ over patented goods.â U.S. Br. 24. At the very least, an unrestricted patentee-made or -authorized sale in the U.S. triggers exhaustion as to the article sold. Moreover, the âcopyright-related consequencesâ emphasized by the Court in Kirt-saeng, 133 S.Ct. at 1367, were to a large extent, though not entirely, tied to the distinctive problems of museums, libraries, and booksellers. Id. at 1364-67. To that extent, the Courtâs overall analysis of plausible practical effectsâof an interpretation keeping every foreign-made copy forever outside § 109(a)âwas copyright-specific. The Court in Kirtsaeng also concluded *760 that circuit-court precedent on § 109(a) was too fractured to give meaningful comfort that the practical problems from the Courtâs adoption of Wileyâs view of § 109(a) were unlikely to materialize. Id. at 1366. In contrast, our exclusive'jurisdiction and clear rule since 2001, together with the pre-2001 precedents from other courts, provide considerably more reason to discount predictions that adhering to a territorial line.to make exhaustion unavailable based on a foreign sale will result in serious practical problems. For all of those reasons, Kirtsaeng is not controlling in this case. The patent-law issue presented here requires a separate analysis in its own legal setting. C The Patent Act question is whether a foreign sale of a U.S.-patented article made or authorized by a U.S. patentee, standing alone, confers on the buyer authority to import the article into the United States and sell and use it here, even though such an act would be infringing in the absence of authority. The best answer to that question, we conclude, is that such a foreign sale does not confer such authority. .A U.S. patentee, simply by making or authorizing a foreign sale of an article, does not waive its U.S. rights to exclude regarding that article, either conclusively (no matter how clear the reservation of U.S. rights) or only presumptively (subject to sufficiently clear preservation of U.S. rights). 1 The combined logic of the statutory grant of patent rights and the long-recognized basis for exhaustion leads naturally to rejecting exhaustion based on a foreign sale. The statute gives patentees the reward available from American markets. A patentee cannot reasonably be treated as receiving that reward from sales in foreign markets, and exhaustion has long been keyed to the idea that the patentee has received its U.S. reward. Thus, what the statute expressly provides to a U.S. patentee is the reward available from the right to exclude âin the United States.â See 35 U.S.C. §§ 154 (a)(1), 271(a). 16 The reward is inherently a market reward: âit is one of the legal beauties of the system that what is given by the people through their governmentâthe patent rightâis valued automatically by what is given by the patentee. His patent has value directly related to the value of his invention, as determined in the marketplace.â In re Kirk, 54 CCPA 1119, 376 F,2d 936, 964 (1967) (Rich, J., dissenting). 17 And the market reward, un *761 der the statute, is explicitly the reward available from American markets subject to American laws, a reward obtained by selling or authorizing sales in those markets. At the same time, the Supreme Court has âexplained the basis for [exhaustion] doctrineâ in terms of the patenteeâs receipt of the reward given by the statute. Bowman, 133 S.Ct. at 1766 . ââThe purpose of the patent law is fulfilled with respect to any particular article when the patentee has received his reward ... by the sale of the article.â â Id. (quoting Univis, 316 U.S. at 251 , 62 S.Ct. 1088 , itself citing earlier authorities). Only when it is appropriate to assume the receipt of that reward does the sale support an inference of conferral of authority on an articleâs buyer (in the absence of clearly communicated restrictions on the authority conferred). Whatever other issues may be presented by determining when a patentee has âreceived his reward,â the territorial nature of the statutory guarantee supplies a simple, strong reason to exclude foreign sales. The guarantee is the reward from sales in American markets, not from sales in foreign markets. A sale in a foreign market therefore does not furnish âth'e basis forâ Exhaustionâeven for a presumption that authority is being conferred on the buyer to exploit the article in American markets by the actions (importation, sale, use, etc.) that are infringing in the absence of paten-tee-conferred authority. American markets differ substantially from markets in many other countries, and not just because of disparities in wealth that can lead to dramatically different prices (especially for low-marginal-cost products). Government policies differ dramatically, including policies on price regulation and, most particularly,. policies oh the availability and scope of patent protection. Patents involve costly government-approval processes, and the standards vary. 18 The government explains: The independence of national patent systems ... is one of the defining principles of the international legal regime governing the protection of inventions. The United States has ratified the Paris Convention for. the .Protection of Industrial Property, originally adopted more than a century ago, which specifically provided in Article JÂĄ.bis that âPatepts applied for in the different contracting States .... shall be,independent of the *762 patents obtained- for the same invention in the other States 32 Stat.1936 (Aug. 25, 1902). While international agreements facilitate the ability of inventors in- one country to seek patent protection in others, the patents laws of each country are not reciprocal in their protections for particular inventions. As every patent attorney knows, the United States may issue a patent while another country denies protection for the same invention, or approves claims significantly different in scope. U.S. Br. 15-16. Copyrights are different. They generally spring into being without any. government approval, and standards hardly vary compared to patenting standards. As the government says, âpatent law is different from copyright law, under Which authors automatically âenjoy copyright protection in nations across the globeâ pursuant to the Berne Convention for the Protection of Literaryand Artistic Works.â U.S. Br. 16 (quoting Golan v. Holder, â U.S. â, 132 S.Ct. 873, 878 , 181 L.Ed.2d 835 (2012)); see Golan, 132 S.Ct. at 878 (referring to âBertieâs 164 member statesâ). 19 And there is no reason to think that the costs of copyright registration (not even a prerequisite to all copyright protection) are generally comparable to those of securing patent protection. 20 Given the varying' standards, and- the separate examination processes and fees, a U.S. patentee may choose not even to seek patent protection in particular foreign countries. And those seeking protection may not obtain it, .or may not obtain protection comparable to thĂĄt-of the U.S. patent. In either event, foreign sales in such circumstances may not occur under protections likely to produce market returns comparable to the reward contemplated by our patent law. Such country-to-country differences in patent law, moreover, are only part of the likely differences affecting foreign sales, supplementing differences in economic circumstances and in governmentsâ price and other non-patent regulations bearing on sales. For those reasons, a foreign sale, standing alone, is not reasonably viewed as providing the U.S. patentee the reward guaranteed by. U.S. patent law. Such a sale is not reasonably viewed as itself a waiver by the patentee of its U.S. patent rights to prevent the buyer or others from bringing that article into the United States and selling or using it to satisfy a U.S.-market demand that the patentee could otherwise help satisfy at U.S.-market prices, as guaranteed by the Patent Act. 2 The only Supreme Court decision directly addressing the effect of a foreign sale on U.S. patent rights is the 1890 decision in Boesch v. Graff, 133 U.S. 697 , 10 S.Ct. 378 . Albert Graff and J.F. Donnell, by assignments, held an 1883 U.S. .patent on certain lamp burners. Without their permission, Emile Boesch and Martin Bauer sold pat *763 ent-covered burners in the United States. Boesch and Bauer had bought those burners from a supplier in Germany, without permission from the holders of the rights under German patents (dated 1879-1880), which had been issued to the same individuals as the U.S. patent. The German supplier was authorized to make.the sale to Boesch and Bauer, not by the German patentees, but by a German law that allowed continuation of certain preparatory activities that began before the application for the German patents was filed. 133 U.S. at 698-99, 701-02 , 10 S.Ct. 378 , When Graff and Donnell sued Boesch and Bauer for infringement, the single-judge circuit court for the Northern District of California found infringement, and the Supreme Court affirmed that holding. Id. The Court rejected Boesch and Bauerâs defense that they âcould not be held for infringement, because they purchased the burners in Germany from a person having the right to sell them there, though not a licensee under the German patents.â Id. at 699 , 10 S.Ct. 378 . The Court stated âthe exact question presented [a]s whether a dealer residing in the United States can purchase in another country articles 'patented there, from a person authorized to sell them, and import them to and sell them-in the United States, without the license or consent of the owners of the United States patent.â Id.. at 702,10 S.Ct. 378 . In answering the question, the Court recited the then-leading decisions on domestic exhaustion, culminating , in Adams , which, the Court observed, held that, within the confines of the United States, the courts would not add an unexpressed territorial limit to the rights conferred by an unrestricted sale by a regional assignee. Id. at 703, 10 S.Ct. 378 . The Court then concluded that the cross-border situation was different. Its full rationale was as follows: The right which [the German seller] had to make and sell the burners in Germany was allowed hini under the laws of that country, and âą purchasers from him could not be thereby authorized to sell the articles in the United States in defiance of the rights of patentees under' a United States patent. A prior foreign patent operates under our law to limit âąthe duration of the subsequent patent here, but that is all. - The sale of articles in the United States under a United States patent cannot be controlled by foreign laws. â . Id. That rationale by its terms does not make relevant whether the foreign sale was made under ĂĄ foreign patent. Indeed, the second sentence says that a âprior foreign patentâ does not cause loss of U.S'. patent rights. Rather, the. rationale turns only on the fact that the foreign sale was made under foreign law. 21 The last sentence states the territorial principle: âThe sale of articles in the United States under a United States patent cannot be controlled by foreign laws.â Id. That principle does not preclude an accused, infringer from establishing that the U.S. patentee actually gave it a license, expressly or by implication. .It means that the. exhaustion doctrine does not treat a foreign sale, lawful abroad for whatever reason, as having the .cross-border legal effect of authorizing otherwise-infringing U.S. acts involving the purchased article. And that is how the principle has been understood by the Supreme Court. See *764 Keeler, 157 U.S. at 664-65 , 15 S.Ct. 738 (âThe exact question presented was whether a dealer residing in the United States could purchase in another country articles patented there from a person authorized there to sell them; and import them to and sell them in the United States without the license or consent of the owners of the United States patent, and the court held that the sale of articles in the United States under a United States patent cannot be controlled by foreign laws. In this case neither the patentee nor any assignee had ever- received any royalty or given any license to use the patented article in any part of the United States.â); A. Bourjois & Co. v. Katzel, 260 U.S. 689, 692 , 43 S.Ct. 244 , 67 L.Ed. 464 (1923) (trademark case, explaining: âOwnership of [particular] goods ... does not necessarily carry the right to sell them at all in a given place. If the goods were patented in the United States a dealer who lawfully bought similar goods abroad from one who had a right to make and sell them there could not sell them in the United States. Boesch....â). . The principle of Boesch , precluding foreign control of U.S. rights, has a mirror-image counterpart in the territoriality principle of U.S. patent law that, broadly denies projection of U.S. patent rights to cover foreign conduct. In Brown v. Duchesne, 60 U.S. (19 How.) 183 , 15 L.Ed. 595 (1857), the Supreme Court, referring to the patent statutes, said that âthese acts of Congress do not, and were not intended to, operate beyond the limits of the United States.â Id. at 195 . The Court also explained the guaranteĂ©d reward from domestic markets: the patent laws âsecure to the inventor a just remuneration from those who derive'a profit or advantage, within the United States, from his genius and mental labors.â Id.; see, e.g., Dowagiac, 235 U.S. at 650, 35 S.Ct. 221 (âThe right conferred by a patent under our law is confined to the United States and its territories (Rev.Stat. § 4884, Comp.Stat. 1913, § 9428), and infringement of this right cannot be predicated of acts wholly done in a foreign country.â). The Supreme Court relied on the strength of the territorial principle in Deepsouth Packing Co. v. Laitram Corp., 406 U.S. 518 , 92 S.Ct. 1700 , 32 L.Ed.2d 273 (1972), which rejected a claim of infringement against Deepsouth just because the ultimate combination covered by the patent was mĂĄde abroad, after Deepsouth shipped all the parts from the United States. The Court explained: Our patent system makes no claim to extraterritorial effect; âthese acts of Congress do not, and, were not intended to, operate beyond the limits of the United States,â Brown v. Duchesne, 19 How., at 195 (1856), ĂĄnd we correspondingly reject the claims of others to such control over our markets. Cf. Boesch v. Graff, 133 U.S. 697, 703 [ 10 S.Ct. 378 ] (1890). 406 U.S. at 531 , 92 S.Ct. 1700 . In Microsoft Corp. v. AT & T Corp., 550 U.S. 437 , 127 S.Ct. 1746 , 167 L.Ed.2d 737 (2007), the Supreme Court quoted the foregoing passage from Deepsouth .as support for â[t]he traditional understanding that our patent law âoperate[s] only domestically and do[es] not extend to foreign activities,â ... [which] is embedded in the Patent Act itself, which provides that a patent confers exclusive rights in an invention within the United States. 35 U.S.C. § 154 (a)(1) (patenteeâs rights over invention apply to manufacture, use, or sale âthroughout the United Statesâ and to importation âinto the United Statesâ).â Id. at 455 , 127 S.Ct. 1746 . And the Court added: As a principle of general application, moreover, we have stated that courts should âassume that legislators take account of the legitimate sovereign inter *765 ests of other nations when they write American laws.â F. Hoffmann-La Roche Ltd. v. Empagran S. A., 542 U.S. 155, 164 [ 124 S.Ct. 2359 , 159 L.Ed.2d 226 ] (2004); see EEOC v. Arabian American Oil Co., 499 U.S. 244, 248 [ 111 S.Ct. 1227 , 113 L.Ed.2d 274 ] (1991). Thus, the United States accurately conveyed in this case: âForeign conduct is [generally] the domain of foreign law,â and, in the area here involved, in particular, foreign law âmay embody different policy judgments about the relative rights of inventors, competitors, and the public in patented inventions.â Brief for United States as Amicus Curiae 28. Id. (emphasis added). The Court then applied the presumption of congressional respect for territorial limits in patent law to interpret the very provision, § 271(f), that Congress had enacted (in 1984) to supersede Deepsowth, explaining that the presumption âremains instructive in determining the extent of the statutory exceptionâ to the strict territorial limits elsewhere stated in the statute. Id. at 456, 127 S.Ct. 1746 . The principles thus expressed, perhaps especially the sentence highlighted in the quote just above, recognize what we noted above: Patent law is especially territorial, and laws vary considerably from country to country. The Supreme Courtâs recognition of those points reinforces our conclusion that foreign markets are not the predictable equivalent of the American markets in which the U.S. patentee is given a right to exclude and the rewards from that exclusivity. The Courfis closest patent-law precedents thus support our holding that sales in foreign markets should not be presumed to confer on the buyer authority to displace sales in American markets. 3 Congress has not enacted a general provision of the Patent Act specifically addressed to foreign-sale exhaustion of U.S. patent rights. Congress has left the general issue to judicial resolution. When the subject arose in the, Uruguay round of multilateral negotiations that led to the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), the parties agreed not to address the subject, stating, in article 6, that ânothing in this Agreement shall be used to address the issue of the exhaustion of intellectual property rights.â TRIPS, Apr. 15, 1994, 33 I.L.M. 1197, 1200, quoted in Kirtsaeng, 133 S.Ct. at 1383 (Ginsburg, J., dissenting). And when Congress implemented the. international agreement through the 1994 legislation that (among other things) added the new importation ban to § 271(a); the accompanying Statement of Administrative Actipnâwhich Congress deemed authoritative, 19 U.S.C. § 3512 (d)âstated that â[t]he Agreement ... does not affect U.S. law or practice relating to parallel importation of products protected by intellectual property rights.â H.R.Rep. No. 103-316, at 633, 981 (1994), reprinted in 1994 U.S.C.C.A.N. 4040, 4280. The recent Trans Pacific Partnership agreement 5 includes a similar disclaimer, reserving the partiesâ rights to make other international agreements on the subject. See Trans-Pacific Partnership art. 18.11 & n. 8, Oct. 5, 2015, https://ustr.gov/trade-agreements/free-trade-agreements/trans-pacificpartnership/tpp-full-text. Congress did act in three specific instances formally to guarantee a U.S. pat-entee the right to retain its U.S. rights despite selling abroad. Congress so provided through legislation, adopted by both houses and signed .by the President, that approved three international agreements. United States-Morocco Free Trade Agree *766 ment Implementation Act, Pub.L. No. 108-302, 118 Stat. 1103 (2004); 22 United States-Australia Free Trade Agreement Implementation Act, Pub.L. No. 108-286, 118 Stat. 919 (2004); 23 United States-Singapore Free Trade Agreement Implementation Act, Pub.L. No. 108-78, 117 Stat. 948 (2003). 24 ( In doing so, Congress did not provide the promised rights other than, through the existing Patent Act provisions of §§ 154, 271. Those congressionally approved guarantees. would be negated if Impressionâs view of the Patent Act were adopted: U.S. patentees would lose their U.S. patent rights - by -selling abroad. Ah interpretation of a statute that produces such a contradiction with-other enactments is-to be avoided, at least where other considerations already point against such ah interpretation. See FDA v. Brown & Williamson Tobacco Corp., 529 U.S. 120, 143 , 120 S.Ct. 1291 , 146 L.Ed.2d 121 (2000); Vimar Seguros y Reaseguros, S.A. v. M/V Sky Reefer, 515 U.S. 528, 539 , 115 S.Ct. 2322 , 132 L.Ed.2d 462 (1995); W. Va. Univ. Hosps., Inc. v. Casey, 499 U.S. 83, 100 , 111 S.Ct. 1138 , 113 L.Ed.2d 68 (1991). The three congressional enactments thus provide a further reason to reject Impressionâs view. At the same time, they leave to our internal lawâthe Patent Act, as judicially interpretedâwhether even a presumptive-exhaustion rule governs. The agreements say nothing to undermine our reasons for rejecting a presumptive-exhaustion rule. The only other legislative enactment presented for our consideration is 21 U.S.C. § 381 (d)(1)-(2). Paragraph (1) of that, subsection states, a general rule that âno drug subject to section 353(b) of this title [concerning prescription-necessitating drugs] or composed wholly or partly of insulin which is manufactured in a State and exported may be imported into the United States unless the drug is imported by the manufacturer of the drug.â The general rule is subject to one exception, stated in paragraph (1), for certain prescription drugs imported by pharmacists and wholesalers from Canada, as regulated *767 under 21 U.S.C. § 384 . And it is subject to a second exception stated in paragraph (2), which authorizes the Secretary of Health and Human Services to permit importation otherwise within the paragraph (-1) ban âif the drug is required for emergency . medical care.â 21 U.S.C. § 381 (d)(2). That provision does not alter our conclusion. The provision does not purport to h'mit patenteesâ rights regarding importations under 35 U.S.C. §§ 154 , 271. It adds an express government-enforced ban on certain importations, and it makes certain exceptions to the added ban, authorizing the Secretary to allow certain importations. Perhaps where the Secretary does so, an injunctive remedy might be unavailable to the patentee under 35 U.S.C. § 283 , for public-interest reasons. See eBay Inc. v. MercExchange, L.L.C., 547 U.S. 388 , 126 S.Ct. 1837 , 164 L.Ed.2d 641 (2006). But nothing in 21 U.S.C. § 381 (d) makes non-infringing any conduct that otherwise would be infringing. Congress may modify patenteesâ rights under the Patent Act. It may do so with respect to particular articles, without modifying the general exhaustion rale for foreign'sales under the Patent Actâthough § 381(d) does not do even that. Or it may more generally prescribe a general exhaustion rale for patented articles, specifying the conditions for exhaustion, as it did in the Copyright Act for copyrighted works. But it has not done that either. 4 Our no-exhaustion conclusionâwhich leaves undisturbed the availability of an express- or implied-license defense to infringementâ4s broadly consistent with the decisions of courts other than the Supreme Court, with the apparent exception of a trial-court decision that pre-dates Boesch. The pre-Boesch decision is Holiday v. Mattheson, 24 F. 185 (C.C.S.D.N.Y.1885), in which few facts are set out. The defendants bought some U.S.-patented article in England from âa vendee of the patentee,â âwithout restriction or conditions.â Id. at 185 . The-court denied the patenteeâs motion for a preliminary injunction against U.S. activities involving the article. It reasoned that, whether or not an article is patented, â[w]hen the owner sells an article without any reservation respecting its use, or the title which is to pass,â â[t]he presumption arising from such a sale is that the vendor intends to part with all his rights in the thing soldâ; and a patentee-seller âparts with his monopolyâ as to that articleââunless by the conditions of the bargain the monopoly right is impressed upon the thing purchased,â i.e., unless âthe owner of a patent sells the patented article under circumstances which imply that the purchaser is not to acquire an unqualified property in the thing purchased.â Id. at 185-86 . That description, with its emphasis on the absence or presence of patentee-conveyed restrictions on post-purchase use, is taken entirely from domestic exhaustion law. The court said nothing to recognize that a, distinct issue is presented when the sale was made abroad; and the opinion, describing few facts, does not make clear even indirectly if the circumstances would have given rise to an im-. plied-license defense. In any event, just a few years after the.trial-court decision in Holiday , the Supreme Court in Boesch made clear how much the crossing of international boundaries matters. After Boesch, the Second Circuit in Dickerson v. Matheson, 57 F. 524 (2d Cir. 1893), affirmed a finding of infringement against Matheson & Co., which had acquired from a German seller in 1887, and brought into the United States for sale and use here, batches of a coloring agent that was subject to a U.S. patent and a German *768 patent, both assigned to the Bayer Company. The German seller (the Berlin Company) was a licensee of the Bayer Company,- with the right to sell both in Europe and the United States, and it made clear that importation into the United States was prohibited. Id. at 525-26 . In the suit brought by Dickerson, to whom the Bayer Company assigned the U.S. patent'in 1888, the Second Circuit rejected Mathesonâs defense to infringement. It read Boesch to establish that â[a] purchaser in a foreign country of an article patented in that country and also in the United States, from a licensee under the foreign patent .only, does not give the purchaser a right to import the article into, and to sell it in, the United States, without the license or consent of the owner of the United States patent.â Id. at 527. The Eighth Circuit reached a similar result in Dickerson v. Tinling, 84 F. 192 (8th Cir.1897), involving Bayer & Co.âs phenacetine product. The court noted that âit appears that no patent [on the product] had ever been issued in Germanyâ and that âevery package of phenacet-ine thĂĄt had ever been sold by Bayer & Co. in a foreign country had a prohibition against its importation into and sale within the United States printed upon it, and was sold subject to that prohibition.â Id: at 193; It was unclear whether Tinling bought the phenacetine at issue from Bayer & Co. (or its' vendees) or from âothers,â but it did not matter to the outcome. Id. at 194 . âIf he bought it of others than Bayer & Co. or their vendees, he bought with it no right to sell it in the'United States, because no one but Bayer & Co. and their vendees had that- right in this country.â Id. âOn the other hand, if [Tinl-ing] bought the phenacetine he is selling in a foreign country from Bayer & Co., or from its vendees, subject to the express condition that it should not be imported into the United States, or sold within their limits, the exclusive right to sell the patented article within the United States which was granted to Bayer & Co. by the patent was not abridged by that purchase.â Id. The Eighth Circuit pointedly noted that it did not have to decide what the result would be if no restrictions attended a sale made or approved by Bayer. It said: âConcedingâbut not decidingâthat one who buys a patented article without restriction in a foreign country from the owner of the United States patentâ is clear of the U.S. patent for domestic sale and use, id, at 195 (citing Holiday and Mathe son), âthere can be no doubt that a paten-tee has the same right and power to sell the patented- article upon conditions or with restrictions that he has to sell it at all,â id. With Bayer having âsold on the express condition that [the phenacetine] should not be imported into or sold within the United States,â Tinlingâs, domestic sale of the purchased product was infringing. Id. The Eighth Circuit thus reversed the trial courtâs denial of an injunction and ordered an injunction to issue. Id. The Second Circuit likewise reversed the denial of infringement relief in Daimler Manufacturing Co. v. Conklin, 170 F. 70 (2d Cir.1909). The U.S. holder of certain automobile-component patents (Daimler) sought to enjoin the use in the United States of a vehicle containing such components. Conklin had bought the vehicle in Europe, under no restrictions as to importation into or use within the' United States, from a company licensed to sell it in Europe by the holder of European patent rightsâa company distinct from the U.S. patent-holding company, though with common origins and some overlapping ownership involving the inventor Maybach, see Daimler Manufacturing Co. v. Conklin, 160 F. 679 (C.C.S.D.N.Y.1908). The Second Circuit, based on Boesch, concluded: *769 âThe use of articles covered by a United States patent within the United States can no more be controlled by foreign law than the sale can.- The sale by a German paten-tee of a patented article may take it out of the monopoly of the German patent, but how can it take it out of the monopoly of the American patentee who has not sold?â 170 F. at 72 . In 1920, the Second Circuit affirmed the denial of relief where it was clear from the circumstances that the U.S. patentee had granted permission for otherwise-infringing U.S. activities with airplanes bought in Canada. Curtiss Aeroplane & Motor Corp. v. United Aircraft Engâg Corp., 266 F. 71 (2d Cir.1920). Curtiss was the holder of U.S. patents on various airplane-engine technologies. During World War I, an 83-percent-owned Canadian subsidiary of Curtiss (which the court treated as .indistinguishable from Curtiss) granted a licenseâcovering.its Canadian patents and applications and any further inventions it owned or controlled involving changes to the engines at issueâto an entity created by the British government, authorizing the latter to make airplanes for sale to and use by the British government. Id. at 72-74 . The British government bought planes during the war and, after, the war ended, sold some of them to United Aircraft, which brought them into the United States for sale and use here. Id. at 72, 74 . When Curtiss sued, the dispute was over whether âthe authorization to make was general and unrestricted or subject to qualification and conditions, as to the disposition of the planes by the British government.â Id. at 77 ; id. at 75 . The Second Circuit, agreeing with the district court, concluded that the authorization gave the British government freedom from U.S. patent constraints, on what it could do with the planes. The court relied on âthe very nature of thingsâ and âthe language used in the agreements.â Id. at 75 . It explained that â[a]n aero-plane has been said to be the most mobile article manufactured, and it is not confined by geographical boundaries,â id.; that the British had used airplanes in numerous countries during the war, id.; and that âthe aviation fields in Texas and in other statĂ©s were placed at the disposal of the British authorities and were actually used by them as training fields for Canadian aviators,â id. It concluded: â[Curtiss] and the British government alike understood and intended that the aeroplanes to be manufactured by that government as well as those to be supplied to -it- by [Curtiss] were to become the absolute property of the government, and were to be disposed of as the latter should see fit. The express language of the contract is that the aero-planes and other articles should âbecome and be the absolute property of the British government.â â Id. Some decisions of district courts from decades later round out the picture of case law predating Jazz Photo. Judge Lord rejected an exhaustion defense in Griffin v. Keystone Mushroom Farm, Inc., 453 F.Supp. 1283 (E.D.Pa.1978). Griffin was the owner of the US. patent, as well as Italian patents, covering certain machinery. Keystone bought several machines in Italy from Griffinâs exclusive licensee in Italy and brought them into the United States, one for use, two for sale. Griffin sued Keystone for infringement, and Keystone sought summary judgment based on exhaustion. Judge Lord rejected the defense. He read Boesch to apply,' because in Boesch â[t]he source of the alleged infringerâs authorization under foreign law ... was without significance in the Courtâs reasoning.â Id. at 1285. Therefore, it did not matter whether Griffin âowned concurrent United States and Italian patents and had *770 entered into analogous licensing agreements. concerning the same inventions,â giving Griffin a share of royalties from the Italian and American exclusive licensees. Id. â[T]he basic thrust of the Boesch decisionâ was âthat the âsale of articles in the United States under a United States patent cannot be controlled by foreign laws.â â Id. at 1286 (quoting 133 U.S. at 703 , 10 S.Ct. 378 ). In Sanofi, S.A. v. Med-Tech Veterinarian Products, Inc., 565 F.Supp. 931 (D.N.J. 1983), Judge Sarokin denied a preliminary injunction to U.S. patentee Sanofi, S.A., but granted one to U.S. exclusive licensee American Home Products. A Sanofi subsidiary in France sold to an American processor certain pharmaceutical products covered by Sanofiâs U.S. patent; the subsidiary âplaced no restrictions in the sales contract,â and Sanofi had no French patent. Id. at 938 ; see also id. at 934-35 . When the buyer brought the products to the United States for sale, both Sanofi and American Home Products sued. The court concluded first that âif Sanofi were permitted to impose restrictions upon the resale of its patented product, the expectations of the purchaser would be defeated.â Id. at 938 (emphasis added). â[W]here the owner of a patent exhibits conduct from which one dealing with him may properly infer that the owner consents to his use of the patent,.an implied license will arise.â Id. at 940 (citing De Forest Radio, 273 U.S. at 241 , 47 S.Ct. 366 ). But a different conclusion was required as to American Home Products, the U.S. exclusive licensee, the court reasoned, which did not cede its patent rights. âBecause the purchaser is under an obligation to inquire of the seller as to the existence of any outstanding licenses, the purchaser cannot claim that his expectations have been frustrated if he fails to make the necessary inquiry and later discovers that an outstanding license interferes with his right of enjoyment.â Id. âIf the court were to hold that Sanofiâs sale of the product exhausted the patent, it would be crediting Sanofi with greater rights than the patentee actually had. Sanofi had no right to allow its. product to enter this country without the permission of its exclusive licensee.â Id. at 941. 25 All of the foregoing decisions after Boesch reflect both (a) the Boesch principle that foreign laws do not control domestic patent rights and (b) some assessment of the particular circumstances and language of foreign sales to determine if the U.S. patentee gave permission for importation. The pre-Boesch decision in Holiday aside, the results accord with the Jazz Photo no-exhaustiĂłn rule coupled with the availability of a defense based on an express or implied license. That combination of principles, supported in the statute and Supreme Court doctrine, provides a clear doctrinal statement that fits the pre- Jazz Photo case law from outside the Supreme Court. 5 Finally, we consider what we can reliably gauge about the likely real-world consequences of one answer or another to the exhaustion question presented here. As on the first issue before us, the amicus briefs filed here present competing arguments about the effect of one foreign-sale exhaustion rule or another on them interests and the interests they promote, offering varying amounts of empirical support. Such arguments necessarily play a much *771 more limited role for us than they might for Congress. As on the first issue, all that we can conclude is that we see no basis for altering the conclusion we think warranted by the legal sources already considered. a. We have not been shown that substantial problems have arisen with the clear rule of Jazz Photo, which has been in place since 2001, or with the comparable legal understandings based on a century of case law in the area. There is, of course, the possibilityânoted by the Dissent at 787, citing amiciâs assertionsâof unintend- âą ed infringement by buyers of goods in foreign countries who bring them into the United States, whether to use them as components in new goods they make, to sell them, or to use them as consumers. But that possibility is limited by the availability of an implied-license defense from the circumstances of a sale (perhaps, e.g., an unrestricted patentee sale at a seaport or airport to a buyer loading or boarding a vessel or plane bound for the United States). In addition, a large share of such possible unintended infringement, according to the most common policy complaint by electronics-industry amici, is by definition immaterial to any exhaustionânamely, infringement of patents asserted by non-practicing entities that have neither made nor authorized the sale of patent-covered articles. The only scenario relevant to exhaustion is one involving paten-tee-made or, -authorized foreign sales, and we simply have no reliable evidence that the possibility of unintended infringement in that scenario is actually a significant issue in practice. The absence of such evidence in the many years since Jazz Photo, and the still longer period since Boesch, provides good reason to think otherwise. Indeed, it has long been a feature of the patent-law landscape that there can be instances of innocent infringement, because § 271(a) sets a âstrict-liabilityâ standard. Co mmil USA, LLC v. Cisco Systems, Inc., â U.S. â, â, 135 S.Ct. 1920, 1926 , 191 L.Ed.2d 883 (2015). Thus, even domestic purchasers of products from domestic sellers who have not obtained authority from the owners of patents covering the productsâ components could find themselves in that position. But Congress has left strict liability in place, even in light of the scenario not relevant to exhaustion, i.e., patent infringement claimed by non-practicing-entity patentees that have neither made nor authorized the sales at issue. In any event, despite the law in place since Jazz Photo and for decades earlier, there is no reason to think that this is a distinctive problem for foreign- purchased goods, much less a problem affecting a meaningful share of foreign sales leading to imports. In this respect, we have no, reason to think that the most serious real-world problems described in Kirtsaeng carry over to the patent arena.' Prominent among the problems' in Kirtsaehg Were those that would be faced, under the rejected interpretation of § Ă09(a), by libraries, museums, and bookshops. Those entities often would' be dealing on a regular basis with changing inventories' of large numbers- of individually distinct lĂłng-shelf-life works subject to copyrights that have multiple owners and that last for periods far longer than the terms of patents (and variable with the life of the authors). See Eldred, 537 U.S. at 194-96 , 123 S.Ct. 769 (describing copyright terms). And there was good reason to think that they built up âdeeply embeddedâ reliance interests in the absence of clear law pointing, against § 109(a)âs applicability just because a work was made abroad. Kirtsaeng, 133 S.Ct. at 1366 . If there is a counterpart to such situations in , the patent arena, it has not been shown to loom large in the full range *772 of circumstances governed by the answer to the question of foreign-sale-exhaustion. b. Overturning Jazz Photo would plausibly cause significant disruption of existing practices adopted under the contrary law established by Jazz Photo' and decades of prior case law. Such disruption is most likely if exhaustion of U.S. rights were held to follow from a foreign sale without the U.S. patentee having the ability to reserve its U.S. rights. While a conclusive-exhaustion rule is opposed by the government, it is the rule urged by Impression and certain amici that stress the possibility of unintended infringement we have just discussed. An example of likely disruption involves pharmaceutical products. There seems to be no dispute that U.S.-patented medicines are often sold outside the United States at substantially lower prices than those charged here and, also, that the practice could be disrupted by the increased arbitrage opportunities that would come from deeming U.S. rights eliminated by a foreign sale made or authorized by the U.S. patentee. 26 One official recognition of both the fact of low prices abroad and the linkage of such prices to territorial resale protection appears in a 2003 World Trade Organization decision made with the agreement. of the United States. The WTO there waived certain TRIPS patent-recognition provisions in order to allow certain countries to import generic versions of needed medicines. The WTO took care, however, to condition the waiver on agreement by the importing, countries âto control re-exportation of drugs they import in this fashion.â Ganslandt & Mas-kus, at 1036 (discussing WTO General Council, Implementation of paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public Health, Aug. 30, 2003, www.wto.org/english/tratop_e/trips_ e/implem_para6_e.htm). Reversing Jazz Photo and replacing it with a conclusive-exhaustion rule would likely upset such established practices. c. A presumptive-exhaustion rule, subject to some kind of preservation of U.S. rights by the U.S. patentee when making or authorizing a foreign sale, would be less consequential. After all, to try to negate a potential implied-license defense, U.S. pat-entees would have an incentive to make express reservations of U.S. rights in making or authorizing foreign sales, simply to make clear that no license was being conferred. But even for the U.S. patentees that recognize the incentive and try to act on it, whether there is a presumptive loss of U.S. rights makes a difference. In particular; it makes a differenceâ-though we cannot say just how significantâwho has the burden of proof on the issue: must the patentee prove a reservation (communicated to the accused infringer) to avoid exhaustion, or must the accused infringer prove a license? A U.S. patentee that wishes to reserve its U.S. rights may not be able to do so. For a foreign sale, the required reservation is an act in a foreign country. And the foreign sovereign, or local governments in the country, may prohibit sellers *773 from stating reservations of rights that would make importation into and sale in the United States more difficult. A presumptive-exhaustion rule would place a U.S. patenteeâs preservation of U.S. rights within foreign sovereign control. For doctrinal reasons already emphasized, we should avoid attributing to Congress such a ceding of control over domestic rights to foreign sovereigns without clearer reason than we have seen here. The Supreme Courtâs final statement of its rationale in Boesch says as much: âThe sale of articles in the United States under a United States patent cannot be controlled by foreign laws.â 133 U.S. at 703 , 10 S.Ct. 378 . Indeed, such foreign control of U.S. rights is a mirror image of projecting U.S. patent rights into foreign sovereignsâ territories. The Supreme Court has long recognized that the latter is strongly disfavored in reading the Patent Act. See pages 763-65, supra. And since Boesch, the Court has twice recognized the symmetric impropriety of:reading the Patent Act to allow projection of foreign sovereignsâ decisions to control rights in U.S. territory: âOur patent system makes no claim to extraterritorial effect;;âthese acts of Congress do not, and were not intended to, operate beyond the limits of the United States,â Brown v. Duchesne, 19 How., at 195 ; and we correspondingly reject the claims of others to such control over our markets. Cf. Boesch v. Graff, 133 U.S. 697, 703 , 10 S.Ct. 378 (1890).â Deepsouth, 406 U.S. at 531 , 92 S.Ct. 1700 ; see Microsoft, 550 U.S. at 455 , 127 S.Ct. 1746 . In practical terms, moreover, there is a plausible problem with adopting a presumptive-exhaustion rule, compared to leaving the matter to express- of implied-licensip doctrine. Intermediary companies between the foreign purchase and the importation into the United States may be created that make it difficult for the U.S. patentee to carry an affirmative burden of proving adequate notice of reservations attached to a foreign-sold article. Once.the article leaves the hands of the initial seller (the U.S. patentee or its authorized seller), the U.S. patentee seems likely to have limited knowledge about the movement of the article to U.S. markets, through what may be multiple hands. On the other hand, if the burden is on the U.S. importer/seller to establish a conferral of authority, as it is under the express- or implied-license doctrine, there would be incentives to communicate a conferral of authority reliably throughout the chain of custody on the way .to the U.S. importer and seller. That is because the latter, at the end of supply chain, would have the incentive to insist on ultimately receiving such information in order to establish the license defense. A related point may be made about the reasonable expectations of a potential U.S. reseller of goods acquired abroad in sales made or authorized by a U.S. patentee. As to the resellerâs freedom from the pat-enteeâs U.S. rights, the difference between a rule leaving the matter to the resellerâs affirmative proof of a license (express or implied) and a rule of presumptive exhaustion (subject to disproof by the U.S. paten-tee) is significant just when there are genuine uncertainties about whether a license could be established. But in that situation the reseller is not entitled to a strong expectation that it has permission to conduct its otherwise-infringing activities in the United States. Conclusion We hold that, when a patentee sells a patented article under otherwise-proper restrictions on resale and reuse communicated to the buyer at the time of sale, the patentee does not confer authority on the buyer to engage in the prohibited resale or *774 reuse. The patentee does not exhaust- its § 271 rights to charge the buyer who engages- in those actsâor downstream buyers having, knowledge of the restrictionsâ with infringement. We also hold that a foreign- sale of a U.S.-patented article, when made by or with the approval of the U.S. patentee, does not exhaust the paten-teeâs U.S. patent rights in the article sold, even when no reservation of rights accompanies the sale. Loss of U.S. patent rights based on a foreign sale remains a matter of express or implied license. âą Under our first holding, we reverse the district courtâs judgment of non-infringement as to the Return Cartridges first sold in the United States. ' Under our second 'holding, we affirm the district courtâs judgment of infringement as to the cartridges first sold abroad. The case is remanded for entry of a judgment of infringement for Lexmark and for any further proceedings necessary upon entry of. such judgment. Costs awarded to Lexmark. AFFIRMED IN PART, REVERSED IN PART, AND REMANDED . At oral argument, noting a reason the arrangement was not a lease, Lexmark stated that a Return Program Cartridge buyer is not absolutely required to return the cartridge to Lexmark. The restriction bars each of two acts: reusing the cartridge; transferring it to anyone else. . Lexmark has not argued to us that the chip replacement and ink replenishment result in new articles, which would be outside the scope of the exhaustion doctrine. See Aro Mfg. Co. v. Convertible Top Replacement Co., 365 U.S. 336, 346 , 81 S.Ct. 599 (1961) (Aro I). . See, e.g., Global-Tech Appliances, Inc., 131 S.Ct. at 2065 n. 2; General Talking Pictures, 304 U.S. at 181-82 , 58 S.Ct. 849 ; Crown Die & Tool Co. v. Nye Tool & Mach. Works, 261 U.S. 24, 38 , 43 S.Ct. 254 (1923); Geneva Furniture Mfg. Co. v. S. Karpen & Bros., 238 U.S. 254, 257 , 35 S.Ct. 788 , 59 L.Ed. 1295 (1915); Cantrell v. Wallick, 117 U.S. 689, 694 , 6 S.Ct. 970 , 29 L.Ed. 1017 (1886); Blake v. Robertson, 94 U.S. 728, 733 , 24 L.Ed. 245 (1876); Smith v. Nichols, 88 U.S. (21 Wall.) 112, 118-19 , 22 L.Ed. 566 (1875); Bloomer, 55 U.S. (14 How.) at 549 . . 17 U.S.C. § 501 (a) defines "an infringer of the copyrightâ as "[ajnyone who violates any of the exclusive rights of the copyright owner as provided by sections 106 through 122.â Section 106 gives the copyright owner âthe exclusive rights to do and to authorizeâ certain actions, such as making copies and "dis-tributfing] copies or phonorecords of the copyrighted work to the public by sale or other transfer of ownership,â id. § 106(1), (3), but it declares that those rights are â[s]ubject to sections 107' through 122ââhence to section 109(a). Similarly, § 602(a) declares importation to be "an infringement of the exclusive right to distribute copies or phonorecords under section 106, actionable under section 501.â Section 602 makes the importation bar subservient to § 109(a) by making it subservient to the § 106(3) right, which in turn is subservient to § 109(a), as the Supreme Court held in Quality King Distributors, Inc. v. Lâanza Research International, Inc., 523 U.S. 135, 145 , 118 S.Ct. 1125 , 140 L.Ed.2d 254 (1998), and reiterated in Kirtsaeng, 133 S.Ct. at 1354755 . . Since 1999 Congress has provided a prior-use defense to infringement in certain circumstances and, in so doing, given a sale or disposition by a person having a prior-use defense the same exhaustion effect as a sale or disposition by a patent owner. See 35 U.S.C. § 273 (d); id. § 273(b)(2) (2006). But Congress has not defined the underlying patent-exhaustion rule. . Before 1952, the patent statute provided that â[ejvery person who purchases of the inventor, ... or with his knowledge and consent constructs any newly invented ... machine, or other patentable article, prior to the application by the inventor ... for a patent, or who sells or uses one so constructed, shall have the right to use, and vend to others to be used, the specific thing so made or purchased, without liability therefor.â 35 U.S.C. § 48 (1946); Rev. Stat. § 4899. That provision dated from 1870; a broader version (from 1839) did not depend on purchase from the inventor or construction with the inventorâs knowledge and consent. See Dable Grain Shovel Co. v. Flint, 137 U.S. 41, 42 , 11 S.Ct. 8 , 34 L.Ed. 618 (1890). The pre-1952 provision was viewed as a species of "implied license.â 3 Walker on Patents § 451, at 1682--83; Robinson, § 917, at 88. , The Patent Act of 1952 repealed the provision, the House Report briefly explaining that it was â[r]edundant and unnecessary.â H.R.Rep. No. 82-1923, at 72 (1952). No argument for the significance of the repeal has been -made to usâperhaps because (1) the provision did not depend on a sale; (2) it involved (pre-patent) conduct viewed as giving an "implied license,â which the Court has distinguished from âexhaustion,â Quanta, 553 U.S. at 637 , 128 S.Ct.'2109; and (3) it was not authoritatively construed to apply even to sales subject to authority-denying restrictions. . See, e.g., Horne v. Depât of Agric., â U.S. â, 135 S.Ct. 2419, 2428 , 192 L.Ed.2d 388 (2015); Tahoe-Sierra Pres. Council, Inc. v. Tahoe Regâl Planning Agency, 535 U.S. 302, 327 , 122 S.Ct. 1465 , 152 L.Ed.2d 517 (2002); New York Times Co. v. Tasini, 533 U.S. 483, 495-96 , 121 S.Ct. 2381 , 150 L.Ed.2d 500 (2001); Keystone Bituminous Coal Assân v. DeBenedictis, 480 U.S. 470, 500-01 , 107 S.Ct. 1232 , 94 L.Ed.2d 472 (1987); United States v. Sec. Indus. Bank, 459 U.S. 70, 75-76 , 103 S.Ct. 407 , 74 L.Ed.2d 235 (1982); Loretto v. Teleprompter Manhattan CATV Corp., 458 U.S. 419, 433 , 102 S.Ct. 3164 , 73 L.Ed.2d 868 (1982); Kaiser Aetna v. United States, 444 U.S. 164, 176 , 100 S.Ct. 383 , 62 L.Ed.2d 332 (1979); Fidelity-Phila. Trust Co. v. Smith, 356 U.S. 274, 278-79 , 78 S.Ct. 730 , 2 L.Ed.2d 765 (1958); Guggenheim v. Rasquin, 312 U.S. 254, 257-58 , 61 S.Ct. 507 , 85 L.Ed. 813 (1941); Charles C. Steward Mach. Co. v. Davis, 301 U.S. 548, 580-81 , 57 S.Ct. 883 , 81 L.Ed. 1279 (1937); Henneford v. Silas Mason Co., 300 U.S. 577, 582 , 57 S.Ct. 524 , 81 L.Ed. 814 (1937). . See also Ark: Game & Fish Commân v. United States, â U.S. â, 133 S.Ct. 511, 520 , 184 L.Ed.2d 417 (2012) (quoting Cohens); United States v. Alvarez, â U.S. â, 132 S.Ct. 2537, 2544-45 , 183 L.Ed.2d 574 (2012); Illinois v. Lidster, 540 U.S. 419, 424 , 124 S.Ct. 885 , 157 L.Ed.2d 843 (2004);. Reiter v. Sonotone Corp., 442 U.S. 330, 341 , 99 S.Ct. 2326 , 60 L.Ed.2d 931 (1979); United Gas Improvement Co. v. Contâl Oil Co., 381 U.S. 392, 404 , 85 S.Ct. 1517 , 14 L.Ed.2d 466 (1965); Wright v. United States, 302 U.S. 583, 593-94 , 58 S.Ct. 395 , 82 L.Ed. 439 (1938); Sterling v. Constantin, 287 U.S. 378, 400 , 53 S.Ct. 190 , 77 L.Ed. 375 (1932) (âthe general language of the opinion must be taken in connection with the point actually decidedâ); Pacific S.S. Co. v. Peterson, 278 U.S. 130, 136 , 49 S.Ct. 75 , 73 L.Ed. 220 (1928); Bramwell v. U.S. Fid. & Guar.Co., 269 U.S. 483, 489 , 46 S.Ct. 176 , 70 L.Ed. 368 (1926) (âIt is a rule of universal application that general expressions used in a court's opinion are to be taken in connection with the case under consideration.â). . We do not see a sufficient basis to read Mitchellâs âwithout conditionsâ language as limited to sales in which title is not transferred until a condition is.fulfilled (sometimes called âconditional salesâ). The terminology in Mitchell is not limited to âconditional sales,â and the Court later used the tĂ©rm âconditionsâ more broadly, including in discussions of Mitchell. See Motion Picture Patents, 243 U.S. at 506, 514-15, 37 S.Ct. 416 ; A.B. Dick, 224 U.S. at 12, 16, 19 , 32 S.Ct. 364 ; In re Paper-Bag Cases, 105 U.S. 766, 770-71 , 26 L.Ed. 959 (1882). In any event, the language of Mitchell is just one part of the analysis, of which General Talking Pictures is the most significant precedent. . In Chaffee , which involved Goodyearâs rubber patents, the Supreme Court rejected the defendants' invocation of'the Bloomer principle, again in a term-extension context, explaining that there was no evidence that, the defendants had ever received any authority to practice the patented invention. 63 U.S. (22 How.) at 222-24 . . Univis supports some of its broader statements about loss of patent rights with citations to some of the highly restrictive patent-misuse decisionsâe.g., Leitch Manufacturing Co. v. Barber Co., 302 U.S. 458 , 58 S.Ct. 288 , 82 L.Ed, 371 (1938); Morton Salt Co. v. G.S. *750 Suppiger Co., 314 U.S. 488 , 62 S.Ct. 402 , 86 L.Ed. 363 (1942); B.B. Chemical Co. v. Ellis, 314 U.S. 495 , 62 S.Ct. 406 , 86 L.Ed. 367 (1942)âthat .were soon to culminate in the Mercoid decisions, Mercoid Corp. v. Mid-Continent Investment Co., 320 U.S. 661, 64 S.Ct. 268 , 88 L.Ed. 376 (1944); Mercoid Corp. v. Minneapolis-Honeywell Regulator Co., 320 U.S. 680, 64 . S.Ct. 278, 88 L.Ed. 396 .(1944), In the 1952 Patent Act, Congress, by adopting § 271(d), sharply limited the patent-misuse doctrine in response to that line of authority. See Dawson Chem. Co. v. Rohm & Haas Co., 448 U.S. 176, 204-15 , 100 S.Ct. 2601 (1980); Rich, supra, at 21. In 1988, Congress limited the patent-misuse doctrine still further. See Illinois Tool Works, 547 U.S. at 41-43 , 126 S.Ct. 1281 . . The government also cites Aro II, 377 U.S. at 497 , 84 S.Ct. 1526 , but that case involved no issue about restrictions in the terms of authorized sales. . Lord Cokeâs 1628 statement does not address the Statute of Monopolies, enacted just a few years earlier, to which American patent law has often been traced. See Pennock v. Dialogue, 27 U.S. (2 Pet.) 1, 18, 20 , 7 L.Ed. 327 (1829); J.M. Robinson & Co. v. Belt, 187 *751 U.S. 41, 47 , 23 S.Ct. 16 , 41 L.Ed. 65 (1902). Lord Coke did discuss the Statute of Monopolies elsewhere. See Pennock, 27 U.S. (2 Pet.) at 20 (citing Edward Coke, Third Part of the Institutes of the Laws of England 184 (1644)). . In Ninestar, this court rejected the argument that Quanta, 553 U.S. at 632 n. 6, 128 S.Ct. 2109 , upset Jazz Photo. Quantaâs footnote 6 does not address or decide whether a foreign sale can trigger exhaustion. It makes a different point, stĂĄted in the textual assertion the footnote supports: "LGĂ has suggested no reasonable use for the Intel Products other than incorporating them into computer systems that practice the LGE Patents.â Id. at 632 , 128 S.Ct. 2109 ; That assertion applies the Court's standard for when an article not covered by a patent nevertheless embodies the patent. Footnote 6 responds to footnote 10 in LGEâs brief, Brief for Respondent 21-22 n. 10, Quanta (No. 06-937), 2007 WL 4244683 , which does not rely on a foreign sale of the Intel Products, but argues that the (first-sale) Intel Products do not embody the patents because they have substantial non-infringing uses, namely; wholly foreign making, selling,- and using of computers covered by the patents. Quantaâs footnote 6 responds that-such foreign acts with those computers "would still be practicing the patent, even if not infringing it," which is what counts for *756 the âembodyâ inquiry. 553 U.S. at 632 n. 6, 128 S.Ct. 2109 . Neither in footnote 6 nor elsewhere does Quanta refer to LGEâs final footnote, Brief, for Respondent 53 n. 19, in which. LGE cited Boesch, suggested that Intelâs sales might have been made abroad, and said that this was an open question for remand. Quanta replied that LGE had waived any foreign-sale-location contention, so that reversal, not remand, was required. Reply Brief for Petitioners 3 n. 2, Quanta (No. 06-937), 2007 WL 4613423 . , The Court evidently agreed with Quanta. Without discussing Boesch or any issue about foreign-sale exhaustion law, the Court reversed, holding that âLGE can no longer assert its patent rights against Quanta.â 553 U.S. at 638 , 128 S.Ct. 2109 . , The Second Circuit in Kirtsaeng had held that § 109(a) was inapplicable whenever the . copy had been made abroad, John Wiley & Sons, Inc. v. Kirtsaeng, 654 F.3d 210, 222 (2d Cir.2011), and Kirtsaengâs âquestion presentedâ to the Supreme Court was âwhether the copyright owner is entitled to control downstream sales just because it opts to manufacture the copies abroad.â Brief for Petitioner at i, Kirtsaeng (No. 11-697), 2012 WL 2641850 . Kirtsaeng noted once in passing that a sale-location standard âsacrifices any pretense of fidelity to the statutory text" of § 109(a). Id. at 25. Wiley similarly recognized that "[t]he question presented is whether copies made outside the United States are âlawfully made under this titleâ within the meaning of Section 109(a),â Brief for Respondent at i, Kirtsaeng (No. 11-697), 2012 WL 3836936 . Wiley explained that the relevance of sale location was not being argued; and it nowhere argued that the sale of the books outside the United States, as opposed to their manufacture outside the United States, defeated exhaustion. Id. at 37-38 . . Congress has added certain limited extensions to foreign conduct. See 35 U.S.C. § 271 (f). Those limited extensions are not applicable here and only strengthen the essential guarantee of a U.S.-market reward. . See Bonito Boats, Inc. v. Thunder Craft Boats, Inc., 489 U.S. 141, 150-51 , 109 S..Ct, 971, 103 L.Ed.2d 118 (1989) ("The federal patent system thus embodies a carefully crafted bĂĄrgain for encouraging the creation and disclosure of new, useful, and nonobvious advances in technology and design in return for the exclusive right to practice the invention for a period of years.â); Fed. Trade Commân, Evolving IP Marketplace 138-39 ("An important benefit of the patent system, in contrast to other methods of encouraging innovation, like direct prizes, is that it allows each invention to be valued directly through a market mechanism.â) (citing Kenneth W. Dam, The Economic Underpinnings of Patent Law, 23 J. Legal Stud. 247 , 248-49 (1994); Joseph Farrell, John Hayes, Carl Shapiro & Theresa Sullivan, Standard Setting, Patents and HoldUp, 74 Antitrust L.J. 603 (2007)); see also Aro II, 377 U.S. at 507 , 84 S.Ct. 1526 (patent âdamagesâ tied to market valuation); Dowagiac Mfg. Co. v. Minnesota Moline Plow Co., 235 U.S. 641, 648 , 35 S.Ct. 221 , 59 L.Ed. 398 (1915) (reasonable royalty measures âthe val *761 ue of what was taken" by-infringement, necessarily a market value). . See, e.g., Robert Patrick Merges & John Fitzgerald Duffy, Patent Law and Policy: Cases and Materials 55 (5th ed.2011); Graeme B. Dinwoodie, William O. Hennessey, & Shira Perlmutter, International and Comparative Patent Law § 2.03 at 53-54 (2002); John Gladstone Mills III, A TrañsnatioHal Patent Convention for the Acquisition and Enforcement of International Patent Rights, 88 J. Pat. & Trademark Off. Socây 958, 958-59 (2006); Margaret A. Boulware, Jeffrey A. Pyle, & Frank C. Turner, An Overview of Intellectual Property Rights Abroad, 16 Hous. J. Intâl L. 441, 458-59 (1994). A few dollar figures provide some context. For a U.S. patent, the minimum application fee is $2,560 (covering only the basic filing, search, examination, and issue fees). See USPTO Fee Schedule, U.S. Patent & Trademark Office, http://www.uspto.gov/leaming- and-resources/iees-and-payment/usptofee-schedule. As for lawyersâ charges for preparing and prosecuting a patent application, a 2015 report indicated that the median charge to prepare a minimally complex utility patent application is $7,000, with responses to Office Actions ranging .from $2,000 to $3,200 each. Am. Intellectual Prop. Law Assân, Report of the Economic Survey 29 (2015). For an example of filing fees for patents abroad, see European Patent Office, Schedule of Fees, http://www.epoline.org/myepoline_eofp_ portletapp-2.8.3/fees/pdf ?language=en. . It has been noted that, as a matter of statutory text, "of the three principal forms of [federally- protected] intellectual property [copyright, patent, trademark], patent rights are the most explicitly territorial.â Donald S. Chisum, Normative and Empirical Territoriality in Intellectual Property: Lessons from Patent Law, 37 Va. J. Intâl L. 603, 605 (1997); see Dinwoodie et al., § 1.03 at 30. . The application fee for a U.S. copyright registration is $35. Fees, Ă.S. Copyright Office, http://copynght.gov/about/fees.html. The same 2015 Survey that gives a median charge of $7,000 for legal services for preparing a minimally complex patent application (before the 'back-and-forth of prosecution occurs) gives a figure of $400 for services to prepare an application for a copyright registration. Am. Intellectual Prop. Law Assân, Report at 29. . The "durationâ language refers to a sentence in Rev. Stat. 4887 that tied certain U.S. patentsâ expiration dates to those of related foreign patents. See Robinson, § 337, at 461. Congress deleted the provision in 1897. Act of Mar. 3, 1897, ch. 391, § 3, 29 Stat. 693 ; see H.R.Rep. No. 1923, at 38 (1952). . Article 15.9,4 of the.U.S.-Morocco agreements says: "Each Party shall provide that the exclusive right of the patent owner to prevent importation of a patented product, or a product that results from patented process, without the consent of the patent owner shall not be limited by the sale or distribution of that product outside its territory.â A footnote attached to the provision adds: "A Party may limit application of this paragraph to cases where the patent owner has placed restrictions on importation by contract or other means.â United States-Morocco Free Trade Agreement, Morocco-U.S., June 15, 2004, 44 I.L.M. 544 (2005). . Article 17;9.4 of the U.S.-Australia agreement says: "Each Party shall provide that the exclusive right of the patent owrter to prevent importation of a patented product, or a product that results from a .patented process, without the consent of the patent owner shall not be limited by the sale or distribution of that product outside its territory, at least where the patentee has placed restrictions on importation by contract or other means.â United States-Australia Free Trade Agreement, Aus-U.S., May 18, 2004, KAV 6422 (2005). .Article 16.7.2 of the U.S.-Singapore agreement says: "Each Party shall provide a cause of action to prevent or redress the procurement of a patented pharmaceutical product, without the authorization of the patent owner, by a party who knows or has reason to know that such product is or has been distributed in breach of a contract between the right holder and a licensee, regardless of whether such breach occurs in or outside its territory." A footnote attached to that sentence adds: "A . Party may limit such cause of action to cases where the product has been sold or distributed only outside the Partyâs territory before its procurement inside the Partyâs territory.â United States-Singapore Free Trade Agreement, Sing.-U.S., May 6, 2003, 42 I.L.M. 1026 (2003). . See also Kabushiki Kaisha Hattori Seiko v. Refac Tech. Dev. Corp., 690 F.Supp. 1339 (S.D.N.Y.1988) (interpreting settlement agreement to bar patentee Refac from suing purchasers of goods from Hattori). . See, e.g., Mattias Ganslandt & Keith E. Maskus, Parallel Imports and the Pricing of Pharmaceutical Products: Evidence from the European Union, 23 J. of Health Econ. 1035, 1036 (2004) (discussing WTO General Council, Implementation of paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public Health, Aug. 30, 2003, www.wto. org/englisb/tratop_e/trips_e/implem_para6_e. htm); Mainak Mazumdar & Dyuti S. Baner-jee, On Price Discrimination, Parallel Trade and the Availability of Patented Drugs in Developing Countries, 32 Intâl Rev. L. & Econ. 188, 189-93 (2012); Daniel Jacob Hemel & Lisa Larrimore Ouellette, Trade and Tradeoffs: The Case of International Patent Exhaustion, 115 Colum. L.Rev. Sidebar (forthcoming 2016), http://ssrn.com/abstract=2667338. . See also 1 Grant Gilmore, Security interests in Personal Property § 3.7, at 81 (1965) .("For most lawyers the term [âconditional sale'] came to have a reasonably precise meaning: a purchase money security transaction, subject in most states to statute, in which title to the goods was retained by the seller or his assignee until the full purchase price had been paid, usually in periodic installments.â).
[[COURTLISTENER_SUBOPINION {"id":"9821596","type":"040dissent","part":"dissent","author":"Dyk","source_field":"html_with_citations"}]]
DYK, Circuit Judge, dissenting, with whom Circuit Judge HUGHES, joins. I respectfully dissent from the majorityâs holding that Mallinckrodt, Inc. v. Medipart, Inc., 976 F.2d 700 (Fed.Cir. 1992), and Jazz Photo Corp. v. International Trade Commission, 264 F.3d 1094 (Fed.Cir.2001), remain good law. First, I agree with the government that Mallinck-rodt was wrong when decided, 'and in any event cannot be reconciled with the Supreme Courtâs recent decision in Quanta Computer, Inc. v. LG. Electronics, Inc., 553 U.S. 617 , 128 S.Ct. 2109 , 170 L.Ed.2d 996 (2008). We exceed our role as a subordinate court by declining to follow the explicit domestic exhaustion rule announced by the Supreme Court. Second, I would -retain Jazz Photo insofar as it holds that a foreign sale does not in all circumstances lead to exhaustion of United States patent rights. But, in my view, a,foreign sale does result in exhaustion if an authorized seller has not explicitly reserved the United States patent lights. I. Domestic Exhaustion A Both here and in Mallinckrodt the pat-entee itself sold the patented , item to the purchaser. In Mallinckrodt, âthe device [was] manufactured by [the patent owner], who [sold] it to hospitals as a unitary kit.â 976 F.2d at 702 . Here, as the majority recognizes, âLexmark sells its cartridges ... directly to end users, and [ ] to âresellersâ (including wholesalers, dealers, and distributors).â Maj. Op. at 728. Lex-markâs sales of so-called âReturn Program Cartridgesâ were subject to a single-use/ no-resale restriction that barred the purchaser from reusing the cartridge, or transferring a used cartridge to anyone besides Lexmark. See Maj. Op. at 727 & n. 1. Those sales were authorized by the patent holder and transferred title to the purchaser. Beginning in the 1850s, the Supreme Court recognized that such authorized sales exhaust the patenteeâs patent rights in the items sold. The patenteeâs right to exclude under the Patent Act expires with an authorized sale. The question of whether the seller has âauthorizedâ the buyer to use or resell the item is simply irrelevant. The Courtâs language is unequivocal: âą â[W]hen the machine passes to the hands of the purchaser, it is no longer within the limits of the monopoly. It passes outside of it, and is no longer under the protection of the act of Congress..... Contracts in relation to it *775 are regulated by the laws of the State, and are subject to State jurisdiction.â Bloomer v. McQuewan, 55 U.S. 539, 549-50 (1852). âą â[W]hen [patentees]' have made and vended to others to be used one or more of-the things patented, ... they have parted with their exclusive right____By a validâ sale and purchase the patented machine becomes the private individual property of the purchaser, and is no longer specially protected by- the laws of the United States, but by the laws of the State in which it is situated.... [I]f a person legally acquires a title to that which is the subject of letters patent, ... he may repair it- or improve upon it as he pleases, in the same manner as if dealing with property of any other kind.â Bloomer v. Millinger, 68 U.S. 340, 350-52 (1863). âą â[W]hen [theâpatented article] rightfully passes from the patentee to the purchaser, [it] ceases to be within the limits of the monopoly.â Mitchell v. Hawley, 83 U.S. 544, 548 (1872). âą âThe true ground on which [McQue-wan, Millinger, and Mitchell ] rest is that the sale by a person who has the full right to make, sell, and use such a -machine carries with it the right to the use of that machine to the full extent to which it can be used in! point of time.,.. [I]t is open to the use of the purchaser without further restriction on account of the monopoly of the patentees.â Adams v. Burke, 84 U.S. 453, 455-56 (1873). âą â[W]hen the patentee ... sells a machine or instrument whose sole value is in its use, he receives the consideration for its use, and parts with the right to restrict that use____ [I]t is open to the use of the purchaser, without further restriction on account of the monopoly of the patentee.... â Hobbie v. Jennison, 149 U.S. 355, 361-62 [ 13 S.Ct 879 ] (1893). âą â[O]ne who buys patented articles of manufacture from one authorized to sell them becomes possessed of an absolute property in such articles, unrestricted in time or place.â Keeler v. Standard Folding Bed Co., 157 U.S. 659, 666 [ 15 S.Ct. 738 ] (1895). âą â[B]y virtue of the patent law one who had sold a patented machine and received the price and had thus placed the machine so sold beyond the con-fĂnes Ăłf the patent law, could not by qualifying restrictions as to use keep under the patent monopoly a subject to which the monopoly no longer applied.â Bos. Store of Chi. v. Am. Graphophone Co., 246 U.S. 8, 25 [ 38 S.Ct. 257 ] (1918). âą â[W]here a patentee makes the patented article, and sells it, he can exercise no future control over what the purchaser may wish to do with the article after his purchase. It has passed beyond the scope of the patenteeâs rights.â United States v. Gen. Elec. Co., 272 U.S. 476, 489 [ 47 S.Ct. 192 ] (1926). âą âThe first vending of any article manufactured under a patent puts the article beyond the reach of the monopoly which that patent confers.â United States v. Univis Lens Co., 316 U.S. 241, 252 [ 62 S.Ct. 1088 ] (1942). Thus, by the mid-1850s and continuing for the next century, even before Quanta, the Supreme Court repeatedly held that the authorized sale of a patented article exhausted all of the patenteeâs patent rights in that article, and freed the article *776 from any restrictions on use or sale based on the patent laws] Post-sale restrictions were enforceable only as a matter of state contract law. 1 B The sole Supreme Court case-- to' depart from that principle, Henry v. A.B. Dick Co., 224 U.S. 1 [ 32 S.Ct. 364 ] (1912), was explicitly overruled five years later by Motion Picture Patents Co. v. Universal Film Manufacturing Co., 243 U.S. 502, 518 [ 37 S.Ct. 416 ] (1917). See Quanta, 553 U.S. at 625-26 [ 128 S.Ct. 2109 ]. In Henry v. A.B. Dick Co., the A.B. Dick Company sold a rotary mimeograph, and affixed to it a restriction stating that it could only be used with stencil paper, ink, and other supplies made by the patentee. 224 U.S. at 11 [ 32 S.Ct. 364 ]. The Supreme Court in A.B. Dick upheld that restriction, and, more broadly, held that [t]he property right to.a patented machine may pass to a purchaser with no right of use, or with only the right to use in a specified way, or at a specified place, or for a specified purpose. The unlimited right of exclusive use which is possessed by and guaranteed to the pat-entee will be granted if the sale be unconditional. But if the right of use be confined by specific restriction, the use not permitted is necessarily reserved to the patentee. If that reserved control of use of the machine be violated, the patent is thereby invaded. Id. at 24-25 , 32 S.Ct. 364 (emphasis added). The Court .reasoned, in part, that the patent ownerâs âlarger rightâ of excluding all others from using the patent âembraces the lesser, of permitting others to use upon such terms as the patentee chooses to prescribe.â Id. at 35 , 32 S.Ct. 364 . The holding of A.B. Dick, that a patent owner has the right to impose post-sale restrictions under the patent law, provided the purchaser has sufficient ânotice that he buys with only a qualified right of use,â id. at 26 , 32 S.Ct. 364 , is.the same as the panelâs holding in Mallinckrodt and the majorityâs holding in this case. A.B. Dich was quickly overruled in Motion Picture Patents, 243 U.S. at 518 , 37 S.Ct. 416 , which stands as compelling authority against the majorityâs conclusion. 2 There, the licensee-manufacturer sold film projectors subject to an attached notice restricting their use to unpatented films made by the Motion Pictures Patents Company, and other restrictions ânot stated in the notice, but which are to be fixed, after sale.â id. at 505-09 , 37 S.Ct. 416 . When a purchaser 'used the projector to *777 display films made by another company, the Motion Picture Patents Company sued for infringement. Id. at 508 , 37 S.Ct. 416 . The question was whether the restrictions were enforceable after the sale. The Court rejected the basic rationale of A.B. Dick that, since'the âpatentee may withhold his patent altogether from public use, he must logically and necessarily be permitted to impose any conditions which he chooses upon any use which he may allow of it,â id. at 514 , 37 S.Ct. 416 , and concluded that AB. Dick âmust be regarded as overruled,â id. at 518 , 37 S.Ct. 416 . Instead, the Court reaffirmed that âthe right to vend is exhausted by a single, unconditional sale, the article sold being thereby carried outside the monopoly of the patent law and rendered free of every restriction which the vendor may attempt to put on it.â Id. at 516 , 37 S.Ct. 416 . The majority attempts to distinguish Motion Picture Patents , on the ground that it only âheld particular restrictions improper ... relying on the 1914 Clayton Act,â but âdid not rule that all restrictions on a patenteeâs sale were ineffective to preserve the patenteeâs patent-law rights.â Maj. Op. at 749. That is not accurate. Motion Picture Patents did not leave behind the remnants of AB. Dickâminus tie-ins and resale price maintenance. To the contrary, the Court in Motion Picture Patents found that â[t]he patent law furnishes no warrant forâ the restrictions imposed by the patent owner. 243 U.S. at 516 , 37 S.Ct. 416 . The passage of the Clayton Act only âconfirmedâ the Patent Act holding reached in Motion Picture Patents. Id. at 517, 37 S.Ct. 416 . In later cases, the Court characterized Motion Picture Patents as having broadly settled the ineffectiveness of all post-sale restrictions under the patent law. In Boston Store of Chicago v. American Graphophone Co., Motion Picture Patents was viewed as âconcerning] whether the monopoly of the patent law can be extended beyond the scope of that law or, in other words, applied to articles after they have gone beyond its reach.â 246 U.S. at 26 , 38 S.Ct. 257 (emphasis added). The Court stated that Motion Picture Patents accordingly settled âthe general question of the power of the patentee to sell and yet under the guise of license or otherwise to put restrictions which in substance were repugnant to the rights Which necessarily arose from the sale which was made.â Id. at 24, 38 S.Ct. 257 . Resting on patent exhaustion principles, Motion Picture Patents âdecided that as by virtue of the patent iaw one who had sold a patented machine and received the price, and had thus placed the machine so sold beyond the confines of the patent law, could not by qualifying restrictions as to 'use keep under the patent monopoly a subject to which the monopoly no longer applied.â Id. at 25, 38 S.Ct. 257 (emphasis added). In Quanta , the Court reiterated the broad patent exhaustion rule and left no room for a resurrection of AB. Dick. LG Electronics (âLGâ) owned system and method patents related to computer technology. Quanta, 553 U.S. at 621-22 , 128 S.Ct. 2109 . LG licensed Intel to manufacture microprocessors and chipsets that used the LG patents,. Id. at 623 , 128 S.Ct. 2109 . The licensing agreement stipulated that no license was given to Intelâs customers to combine the licensed Intel products with non-Intel- components in ways that practiced the LG patents. Id. A separate master agreement required Intel to provide a notice to its customers â that they were not licensed to practice the LG patents by combining Intel products with non-Intel products. Id. at 623-24 , 128 S.Ct. 2109 . Quanta purchased microprocessors and chipsets covered by.the LG patents from Intel but combined them with non-Intel products to manufacture computers. *778 LG filed suit against Quanta for patent infringement. Id. at 624 , 128 S.Ct. 2109 . The Court found that the Intel products embodied, the LG patents and that Intel had authority to sell its products to Quanta. Id. at 635, 636-37 , 128 S.Ct. 2109 . It then expansively held that â[t]he authorized sale of an article that substantially embodies a patent exhausts the patent holderâs rights and prevents the patent holder from invoking patent law to control postsale use of the article.â Id. at 638 , 128 S.Ct. 2109 . Significantly, Quanta described Motion Picture Patents as having âreiterated the rule -that âthe right to vend is exhausted by a .single, unconditional sale, the article sold being thereby carried outside the monopoly of the patent law and rendered free of: every restriction which the vendor may attempt to put upon it.â â 553 U.S. at 626 , 128 S.Ct. 2109 (quoting Motion Picture Patents, 243 U.S. at 516 , 37 S.Ct. 416 ). After Quanta , the Court confirmed again that the âdoctrinĂ© of patent exhaustion limits a patenteeâs right to control what others can do with an article embodying or containing an invention.' Under the doctrine, âthe initial authorized sale of a patented item terminates all patent rights to that item.ââ Bowman v. Monsanto Co., â U.S. â, 133 S.Ct. 1761, 1766 , 185 L.Ed.2d 931 (2013) (quoting Quanta, 553 U.S. at 625 , 128 S.Ct. 2109 ). 3 The patent exhaustion doctrine, as stated by Quanta , admits of no exception. Authorized sales âprevent!] the patent holder from invoking patent law to control postsale use.â Quanta, 553 U.S. at 638 , 128 S.Ct. 2109 . Contrary to the majority, Quantaâs reference to an âunconditional sale,â id. at 626 , 128 S.Ct. 2109 , a reference appearing as well in other exhaustion cases, can hardly be read to contradict the Courtâs central holding that post-sale restrictions are unenforceable under the patent laws. The language referring to âconditionsâ imposed on sale or âunconditionalâ sales is used in these cases in two different senses. On the one hand, there are cases in which such language is used to denote the existence of post-sale restrictions imposed by the patent holder. A.B. Dick and Motion Picture Patents fall into this category. A.B. Dick stated that exhaustion applied only if the sale was âunconditional[ ],â i.e., free of post-sale restrictions. 224 U.S. at 19 , 32 S.Ct. 364 . Motion Picture Patents , in overruling A.B. Dick, rejected the notion that a seller could impose âconditions,â i.e., restrictions on post-sale use. 243 U.S. at 514-15 , 37 S.Ct. 416 . The use of such language in those cases refutes the majorityâs theory, since. Motion Picture Patents holds that conditions (i.e., restrictions) are not permissible under the patent laws. In the' few other cases that use the âunconditional salesâ language, the reference to an âunconditionalâ sale is to a sale in which title passes, not to a sale in which *779 no restrictions are imposed. 4 The contemporaneous understanding of âconditional saleâ was - as a security device, i.e., an âagreement to sell upon a condition to be performed.â Harkness v. Russell, 118 U.S. 663, 665 , 7 S.Ct. 51 , 30 L.Ed. 285 (1886); see also Motion Picture Patents, 243 U.S. at 520-21 , 37 S.Ct. 416 (Holmes, J., dissenting) (â[A] conditional sale retaining the title until a future event after delivery has been decided to be lawful again and again by this court.â). 5 That the use of the term âunconditionalâ in those cases is not referring to a sale without restrictions is crystal clear from Quanta itself, where the Court stated that Motion Picture Patents âreiterated the rule that âthe right to vend is exhausted by a single, unconditional sale, the article sold being thereby carried outside the monopoly of the patent law and rendered free of every restriction which the vendor may attempt to put upon it.â â 553 U.S. at 626 , 128 S.Ct. 2109 (quoting Motion Picture Patents, 243 U.S. at 516 , 37 S.Ct. 416 ). In other words, a sale with restrictions could nonetheless be an âunconditionalâ sale in which title passes, with the restrictions invalid under the patent laws because of exhaustion. C The rule articulated in the Supreme Courtâs cases is consistent with the common law rule against restraints on the use or alienation of chattels, which formed the background of the patent statute. In Kirtsaeng v. John Wiley & Sons, Inc., 133 S.Ct. 1351, 1363 (2013), the Court noted, in the context of copyright law, that the â âfirst saleâ doctrine is -a common law doctrineâ traceable to âthe common lawâs refusal to permit restraints on the alienation of chattels.â The Court cited Lord Cokeâs 17th century observation that [If] a man be possessed of ... a horse, qr of any other chattel ... and give or sell his whole interest ... therein upon condition that the Donee or Vendee shall not alienfate] the same, the [condition] is voi[d], because his whole interest ... is out of , him, so as he hath no possibility] of a Reverter, and it is against Trade and Traffi[c], and bargaining and contracting betwee[n] man and man____ Id. (quoting 1 Edward Coke, Institutes of the Laws of England § 360, at 223 (1628)). Kirtsaeng concluded that â[a] law that permits a copyright holder to control the resale or other disposition of a chattel once sold is similarly âagainst Trade and -Traf-fi[c], and bargaining and contracting.â â 133 S.Ct. at 1363. , So too a rule permitting a patent holder to enact post-sale restraints would b.e contrary to the general common law. Post-sale restraints would âcast a cloud of uncertainty over every sale,â Tessera, Inc. v. Intâl Trade Commân, 646 F.3d 1357, 1370 (Fed.Cir.2011). The Supreme Court has repeatedly instructed us not to ignore traditional legal principles to fashion rules âunique to patent disputes.â eBay Inc. v. *780 MercExchange, L.L.C., 547 U.S. 388 , 393, 126 S.Ct. 1837 (2006); see also Global-Tech Appliances, Inc. v. SEB S.A., 131 S.Ct. 2060, 2069 (2011); MedImmune, Inc. v. Genentech, Inc., 549 U.S. 118 , 132 n. 11, 127 S.Ct. 764 , 166 L.Ed.2d 604 (2007). We should decline to do so here. There is no indication in the patent laws that there should be a special exception for patent holders to the general longstanding common law doctrine that promotes free competition in the resale market and certainty in commercial transactions. Allowing the patent holder to impose conditions on the sale of a patented item would indeed largely eviscerate the exhaustion doctrine, by permitting the imposition of all manner of post-sale restrictions except for tie-ins, price-fixing, and other violations of the patent misuse and antitrust law. D The majorityâs justifications for refusing to follow Supreme Court authority establishing the exhaustion rule misconceive our role as a subordinate court. First, the majority characterizes the statement of the exhaustion rule in the Supreme Court cases as mere dictum because in those cases there was either no restriction imposed or the restriction would otherwise violate the antitrust laws. 6 But the cases impose no such qualification on the rule announced. The Supreme Court has repeatedly advised the courts of appeals that our task is to follow the rules proclaimed by the Court, and not to attempt to distinguish Supreme Court cases on their facts. See, e.g., Rivers v. Roadway Express, Inc., 511 U.S. 298, 312 , 114 S.Ct. 1510 , 128 L.Ed.2d 274 (1994) (â[O]nce the Court has spoken, it is the duty of other courts to respect that understanding of the governing rule of law.â); Thurston Motor Lines, Inc. v. Jordan. K. Rand, Ltd., 460 U.S. 533, 534-35 , 103 S.Ct. 1343 , 75 L.Ed.2d 260 (1983) (per curiam) (A court of appeals must not âconfus[e] the factual contours of [a Supreme Court decision] for its unmistakable holdingâ in an .effort to reach a ânovel interpretationâ of that decision.). Previously we have faithfully adhered to this rule. See Ariad Pharm., Inc. v. Eli Lilly & Co., 598 F.3d 1336, 1347 (Fed.Cir. 2010) (en banc) (âAs a subordinate federal court, we may not so easily dismiss [the Supreme Courtâs] statements as dicta but are bound to follow them.â); Stone Container Corp. v. United States, 229 F.3d 1345, 1349-50 (Fed.Cir.2000) (â[W]e do not share the Supreme Courtâs latitude in disregarding the language in its own prior opinions.â). 7 We cannot appropriately depart from it here. *781 Second, the majority relies on 35 U.S.C. §§ 271 (a) and 154(a)(1) to suggest that a broad reading of the exhaustion doctrine is inconsistent with statutory language making an act of infringement, inter alia, any use or sale of a patented invention âwithout authorityâ of the .patent owner, and providing the patent owner with a âright to exclude.â Maj. Op. at 732, 734.. That reliance is misplaced. Patent exhaustion is a limit on the patenteeâs statutory right to control what purchasers can do with an article embodying or containing a patented invention. See Bowman, 133 S.Ct. at 1766 & n. 2 (recognizing that patent exhaustion removes restrictions imposed by §§ 271(a) and 154(a)(1)). The focus of patent exhaustion is not whether the buyer has been expressly or impliedly authorized to sell or use a product in a certain way after the sale. Instead, it begins and ends with an inquiry of whether the seller had authorization to make a sale. The exhaustion doctrine is simply a limit on the scope of the patent monopoly, that is, a limit on the exclusive rights of the patentee. The right to exclude expires (or is âexhaustedâ) by an authorized sale. 8 Third, the majority claims that giving full sweep to the articulation of the exhaustion doctrine in Quanta and other cases would be inconsistent with the Supreme Courtâs decision in General Talking Pictures Corp. v. Western Electric Co., 304 U.S. 175 , 58 S.Ct. 849 (1938), affâd on rehâg, 305 U.S. 124 , 59 S.Ct. 116 (1938). The majority asserts that General Talking Pictures âheld that a patentee can preserve its patent rights by authorizing a manufacturing licensee to make and sell a patented article under an otherwise-proper restriction, including a restriction on the buyerâs post-purchase use.â Maj. Op. at 744. The majority suggests-it would be incongruous if âa patentee cannot preserve its patent rights against" uses of a patented article ... if, instead of licensing someone else to make and. sell the article, it chooses to make and sell the article itself.â Id. The majority urges there is âno sound legal basisâ for distinguishing restrictions on a purchaser from restrictions on a licensee. Id. at 726. 9 In General Talking Pictures, a patent owner granted a non-exclusive license to a licensee to manufacture and sell patented sound amplifier products. 304 U.S. at 180 , 58 S.Ct. 849 . The license contained a field-of-use restriction: the licensee could only -make and sell amplifiers for noncommercial use. Id. Nonetheless, in violation of the license terms, the licensee made and sold the products knowing.that they were to be used in a commercial theater, and the buyer had actual knowledge that the licensee lacked authority to make such a sale. Id. The Court stated the âcontrolling factsâ as, â[t]he patent owner did not sell to petitioner the amplifiers in question *782 or authorize [the licensee] to sell them or any amplifiers for use in theaters or any other commercial use. The sales made by the [licensee] were outside the scope of its license and' not under the patent.â Id. at 180 , 58 S.Ct. 849 . There had been no authorized first sale, for the- licensee âcould not convey to [the ultimate purchaser] what both knew it was not authorized to sell,â and thus both were liable for infringement. Id. at 181-82 , 58 S.Ct. 849 . There is nothing anomalous about General Talking Pictures: The Supreme Court â has clearly distinguished between sales and licenses, holding that while a patentee cannot impose post-sale restrictions on an authorized sale, it can impose restrictions on a licensee. See Gen. Elec., 272 U.S. at 489-90 , 47 S.Ct. 192 ; McQuewan, 55 U.S. at 549-50 ; 6A Donald S. Chisum, Chisum on Patents § 19.04[3][h] (2015). That the exhaustion' of rights applies only to sales and not licenses was clear in Kirtsaeng , which stated that under the copyright âfirst saleâ doctrine, 17 U.S.C. § 109 (a), because many movie theater owners âwere lessees, not owners, of their copies [of copyrighted films], ... they (like bailees and other lessees) cannot take advantage of the âfirst saleâ -doctrine.â 133 S.Ct. at 1361. 10 'Thus, in Quanta , the Court stated that General Talking Pictures âheld that exhaustion did not apply because the manufacturer [licensee] had no authority to sell the amplifiers for commercial use.â 553 U.S. at 636 , 128 S.Ct. 2109 . But Quanta held that where the licensee does have authority to sell, the authorized sale results in exhaustion. In Quanta , Intel, a licensee, did have authority to make sales to purchasers, and âexhaustion turns only on Intelâs own license' to sell products practicing the [patenteeâs patents].â Id. at 637 , 128 S.Ct. 2109 . 11 The majority makes much of the fact that the sale from the licensee' to the ultimate purchaser in General Talking Pictures did not result in exhaustion. See Maj. Op. at 744-45, 747-49. But this is not surprising. The licensee infringed the patent by its manufacture and sale of the item. The sale of the amplifier by the infringer to the ultimate purchaser was the antithesis of an authorized sale, and it is hardly surprising that ah infringerâs unauthorized sale did not result in exhaustion. In any evefit, even if there were some tension between the- Supreme Courtâs broad statement of the exhaustion rule and General Talking Pictures, it is not our task to ignore Supreme Court rulings as âunjustified]â or â[un]soundâ because they are purportedly inconsistent with other Supreme Court cases. The distinction between- restrictions on sales (impermissible) and restrictions on licensees (permissible) exists in the Courtâs precedent, and it is not for us to decide if it is a sound distinction. âIf a precedent of th[e] Court has direct application in a case,' yet appears to rest on reasons rejected in some other line *783 of decisions, the Court of Appeals should follow the case which directly controls, leaving to th[e] Court the prerogative of overruling its own decisions.â Rodriguez de Quijas v. Shearson/Am. Express, Inc., 490 U.S. 477, 484 , 109 S.Ct. 1917 , 104 L.Ed.2d 526 (1989); see also State Oil Co. v. Khan, 522 U.S. 3, 20 , 118 S.Ct. 275 (1997) (Even if a Supreme Court precedent contains many âinfirmitiesâ and rests upon âwobbly, moth-eaten foundations,â it remains the âCourtâs prerogative alone to overrule one of its precedents.â). Finally, the majority proposes that we should somehow sustain the restriction here because it may be pro-competitive, Exhaustion does not turn on whether a particular post-sale restriction is desirable or undesirable, pro-competitive or anti-competitive, but whether the sale was authorized and the item lias passed beyond the scope of the patent monopoly. In any case, the Court has suggested that a prohibition on resale is âmanifestly anti-competitive.â Kirtsaeng, 133 S.Ct. at 1363 . 12 There is, in sum, no colorable basis for the majorityâs failure to follow the exhaustion rule for domestic sales as articulated by the Court in Quanta and numerous other cases.\ II. Foreign Exhaustion The second issue here concerns foreign exhaustion. Lexmark sold patented ink cartridges outside the United States to foreign purchasers. As the majority recognizes, âLexmark made the foreign sales without communicating a reservation of U.S. patent rights.â Maj. Op. at 754. These were, in other words, authorized sales by the holder of United States patent rights, and the sales of so-called Regular Cartridges did not contain âany sale terms restricting reuse or resale.â Maj. Op. at 727. If those latter sales had been made in the United States, even under the majorityâs cramped view of exhaustion, there is no question that the sales would have exhausted Lexmarkâs domestic patent rights. The issue is whether the foreign location of the sale should lead to a different result, as we previously held in Jazz Photo, 264 F.3d at 1111 . *784 âą Like the majority I .would retain Jazz Photo insofar as it holds that a mere foreign sale does not in all circumstances lead to exhaustion of United States patent rights. But the government argues, and I agree, that the foreign sale should result in exhaustion if the authorized seller does not explicitly reserve its United' States patent rights. A Let us first consider the centerpiece of the majorityâs holding that there is a doctrinal blanket ban on foreign exhaustion, namely the Supreme Courtâs decision in Boesch v. Graff, 133 U.S. 697 , 10 S.Ct. 378 , 33 L.Ed. 787 (1890). Boesch announced no such blanket ban. It did not even involve an authorized sale by the holder of U,S. patent rights but rather a sale by a third party under a foreign lawâs prior use exception. In that case, a seller in Germany sold patented lamp burners to two individuals, Boesch and Bauer. Id. at 701 , 10 S.Ct. 378 . The seller was not the U.S. patent holder, or a German patent holder, nor was he even a licensee. Id. Under German law, the seller could make and sell the burners because he had made preparations to manufacture them prior to the filing of the German patent by the holder of the U.S. patent rights. Id.,When Boesch and Bauer imported and sold the lamp burners in the United States, the American assignees sued for infringement. Id. at 698 , 10 S.Ct. 378 . The Court affirmed the holding of infringement, finding that Boeschâs and Bauerâs sales were âin defiance of the rights [of] patentees under a United States patent.... The sale of articles in the United States under a United States patent cannot be controlled by foreign [ (i.e., German)] laws.â Id. at 703 , 10 S.Ct. 378 . Thus Boesch does not apply here because the foreign sales were made by Lex-markâthe U.S. patent rights - holderâitself. The accused, infringer does not rely on foreign law as the source of its authority but the doctrine of exhaustion resulting from an authorized sale by a U.S. rights holder. Just as Boesch is inapposite, so too is the doctrine of extraterritoriality, reflected in Deepsouth Packing Co. v. Laitram Corp., 406 U.S. 518 , 92 S.Ct. 1700 (1972); Dowagiac Manufacturing Co. v. Minnesota Moline Plow Co., 235 U.S. 641 , 35 S.Ct. 221 (1915); and Brown v. Duchesne, 60 U.S. 183 (1856). See Maj. Op. at 763-64. The question here is not whether the manufacture or use of a patented product wholly outside of the United States is patent infringement under U.S. law, see Deepsouth, 406 U.S. at 527 , 92 S.Ct. 1700 , or whether foreign law creates a defense to infringement in the United States, see Boesch, 133 U.S. at 703 , 10 S.Ct. 378 . Rather, the question is whether United States patent law recognizes exhaustion that occurs abroad from an authorized foreign sale by the holder of the U.S. patent rights and without reservation of U.S. rights. 13 The majority itself admits that foreign activity, such as express or implied license, can have an impact on the rights of a United States patent owner. See Maj. Op. at 727. B Strikingly, every one of the lower court decisions before Jazz Photo applied exactly the rule for which the government .argues. When the sale was made by an entity hot holding' U.S. pĂĄtent rights, as in Boesch , or when the authorized foreign *785 seller clearly reserved U.S. rights, there was no exhaustion. See Sanofi, S.A. v. Med-Tech Veterinarian Prods., Inc., 565 F.Supp. 931, 934-35 (D.N.J.1983) (foreign sale not authorized by U.S. exclusive licensee); Griffin v. Keystone Mushroom Farm, Inc., 453 F.Supp. 1283, 1285, 1287 (E.D.Pa.1978) (foreign sale not authorized by U.S. exclusive licensee); Daimler Mfg. Co. v. Conklin, 170 F. 70, 70, *72-73 (2d Cir.1909) (foreign sale was not authorized by U.S. patent holder); see also Dickerson v. Tinling, 84 F. 192, 193 (8th Cir.1897) (foreign sale made with prohibition, on import into and sale within United States); Dickerson v. Matheson, 57 F. 524, 525-26 (2d Cir.1893) (foreign sale with.prohibition on import into United States). But the cases uniformly recognize or assume that where the foreign sale was made by a seller holding U.S. patent rights without a contractual reservation of U.S. rights, exhaustion occurred as a result of an authorized foreign sale. In Holiday v. Mattheson, 24 F. 185, 185 (C.C.S.D.N.Y. 1885), the U.S. patentee sold its patented article in England âwithout restriction or conditionsâ to a first purchaser. A second purchaser obtained the article from the first, and brought the article back to the United States. Id. The circuit court affirmed the trial courtâs judgment of nonin-fringement, stating, â[w]hen the owner sells an article without any reservation respecting its use ... the purchaser acquires the whole right of the vendor in .the thing sold.... The presumption arising from such a sale is that the vendor intends to part with all his rights in the thing sold.â Id. In Dickerson v. Matheson, in 1893, the Second Circuit concluded that â[a] purchaser in a -foreign country, of an article patented in that country and also in the United States, from the owner of each patent, or from a licensee under each patent, who purchases without any restrictions ... acquires an unrestricted ownership in the article, and can use or sell it in this country.â 57 F. at 527 . Similarly in Dickerson v. Tinling, in 1897, the Eighth Circuit â[c]onced[ed,] [but did Hot' decide,] that one who buys a patented article without restriction in a foreign country from the owner of the-United States patent has the right to use and vend it in this country.â 84 F. at 195 . The Second Circuit also found foreign exhaustion in Curtiss Aeroplane & Motor Corp. v. United Aircraft Engineering Corp., 266 F. 71 (2d Cir.1920); There, the U.S. patent owner licensed a corporation to build airplanes in Canada.with âno restriction or limitation as to time, or place, or manner of use of the aeroplanes.â Id. at '80. A buyer who purchased the airplanes in Canada and then brought them back to the United States was not liable for infringement. See id. In Sanofi, S.A. v. Med-Tech Veterinarian Products, Inc., in 1983, the district court found exhaustionâbecause even âassuming that Sanofi had a right to enjoin the reselling of the goods in [the United States], it waived that right by not placing any written restrictions upon the purchaser at the time of sale.â 565 F.Supp. at 938 . This uniform approach, existing well before the 1952 Patent Act and continuing thereafter, strongly supports the governmentâs position. There is indeed a strong argument that the 1952 Act should be read as adopting these earlier cases. See SCA Hygiene Prods. Aktiebolag v. First Quality Baby Prods., LLC, 807 F.3d 1311, 1321 (Fed.Cir.2015) (en banc) (well-established doctrine of laches codified by 1952 Patent Act). C So too congressional legislation described by the majority, far from contradicting the governmentâs- approach, con *786 firms it. Each bilateral trade agreement cited by the majority requires preservation of U.S. patent/rights only where the U.S, rights , have been expressly reserved. 14 This is illustrated by the U.S.-Australia agreement, where the patenteeâs domestic rights must be preserved âwhere the pat-entee has placed-restrictions on importation by contract or other means.â United States-Australia Free Trade Agreement, Aus.-U.S., art. 17.9.4, May 18, 2004, KAV 6422 (2005). Likewise the U.S.-Singapore agreement: requires recognition of an action to prevent or redress the unauthorized procurement of a patented pharmaceutical product, including where it was first sold abroad, but only where someone âknows or has > reason to know that' such product is or has been distributed in breach of a contract between the right holder and a licensee.â United States-Singapore Free Trade Agreement, Sing.U.S., art. 16.7.2, May 6, 2003, 42 I.L.M. 1026 (2003). And the U.S.-Morocco agreement permits the United States to limit foreign exhaustion, as it did previously with Australia and Singapore, âto- âcases where the patent owner has placed restrictions on importation by contract or other means.â United States-Morocco Free Trade Agreement, Morocco-U.S., art. 15.9.4, n. 10, June 15, 2004, 44 I.L.M. 544 (2005). D This brings us to the Supreme Courtâs decision in Kirtsaeng v. John Wiley & Sons, Inc., 133 S.Ct. 1351 (2013). I agree with the majority that Kirtsaeng does not compel identity between the âfirst saleâ doctrine in copyright and patent exhaustion, due to the differences between copyright and patent law. But unlike the majority, I think that Kirtsaeng provides significant guidance and cannot be dismissed as simply a copyright case, or as limited to the âfirst saleâ provision of the Copyright Act. 15 The policies that animated Kirtsaeng are in large part applicable to patent exhaustion. The Court emphasized the importance of leaving purchasers free to resell goods to enhance competition in the marketplace. Id. at 1363 . The Court found that the âfirst saleâ doctrine âfrees- courts from the administrative burden of trying to enforce restrictions uponâ difficult-to-trade, readily movable goods.â Id. The Court also found significant the plea of technology companies, who informed the Court that âautomobiles, microwaves, calculators, mobile phonĂ©s, tablets, and personal computers contain copyrightable software programs or packaging.â Id. at 1365 (internal quotation marks omitted). âA geographical interpretation [of the âfirst saleâ doctrine] *787 would prevent the resale of, say, a. car, without the permission of the holder of each copyright on each piece of copyrighted automobile software.... Without that permission a foreign car owner could not sell his or her used car.â Id. Those commercial consequences are equally applicable to patent exhaustion. Automobiles, microwaves, calculators, mobile phones, tablets, and personal computers also contain patented components. To paraphrase, âa geographical interpretation [of patent exhaustion] would prevent the resale of, say, a car, without the permission of the holder of each [patent] on each piece of [patented] automobile [software or hardware]â Without that permission a foreign car owner could not sell his or her used ear.â Refusing to find presumptive exhaustion by foreign sales would have serious adverse consequences in the patent area, just as in the area of copyright. Technology companies have echoed the concerns in Kirtsaeng and report that âmodern devices include components from' dozensâif not hundredsâof suppliers.â Brief for LG Electronics, Inc.,. Dell Inc., Google- Inc., Intel Inc., et al. as Amici Curiae 2. The majorityâs rule would require a manufacturer to âtrace the patent rights^ of every component it purchases and then negotiate appropriate license arrangements with the component manufacturer (as well as any sub-component manufacturer),â and ultimately âit is consumers who suffer most directly through liigher prices.â Id. at 5, 8. A major retailer informs us that it âoften sells patented products that, although genuine, weiâe not purchased directly from the patent holderâ and that â[s]ome of those products were first sold outside of the United States.â Brief- for Costco Wholesale Corp. et al. as Amici Curiae at 1. A domestic-only patent exhaustion rule would seriously impair international trade. Kirtsaeng emphasized the âever-growing importance of foreign trade to. America,â 133 S.Ct. at 1367, which includes trade not just in artwork and books but also automobiles,. appliances, mobile phones, tablets, and personal computers. The Court concluded: [T]he fact that harm has proved limited sq far may simply reflect the reluctance of copyright holders so far to assert geographically based resale rights. They may decide differently if the law.is clarified in their favor. Regardless, a copyright law that can work in practice only if unenforced, is not a sound copyright law. It is a law that would create uncertainty, would bring, about selective enforcement, and, if widely unenforced, would breed disrespect for copyright law itself! Id. at 1366. So too with patent law. E Despite these significant policy considerations favoring foreign exhaustion for both copyright and patent, there are significant differences betwĂ©en copyright and patent law that cut the other way. The premis'e of exhaustion is that thĂ© rights holder has been compensated for its efforts. See Univis, 316 U.S. at 251 , 62 S.Ct. 1088 (âThe reward he was demanded and received is for the article and the invention which it embodies.... He has thus parted with his right to assert the patent monopoly with respect to itââ). In the area of copyright, given the uniform international protection of copyrights, it is reasonable to assume that the rights holder will âreceive compensation for-a foreign sale. But patent law is different. It is not uniform from country to country. Indeed, there are typically significant differences from country to country. Many countries offer no realistic protection'or'very little protection for items patented under U.S. law. In other words, there is reason to doubt, that the rights holder has been fully compensated *788 for a foreign sale. This suggests an accommodation between the interests of the rights holder and the unsuspecting buyer must be found. Even the majority recognizes the need for such an accommodation. The majority acknowledges that the law should accommodate the potential of âunintended infringement by buyers of goods in foreign countries who bring them into the United States,â but believes that problem could be solved by the availability of an express or a vague implied license defense. See Maj. Op. at 771, 773-74. That defense provides little comfort, however, because it places the burden on the purchaser to obtain a statement from each patentee of a patented component in a product that it has permission to import the component into the United States, or else prove in court that the circumstances of each patenteeâs sale of its component to the manufacturer constituted an implied license to import into the United States. âą In my view, the necessary accommodation between- the interests of the rights holder and the unsuspecting buyer can only be achieved by the governmentâs proposal to put the burden on the U.S. rights holder to provide notice of a reservation of U.S. rights to the purchaser, an approach supported, by the earlier lower court decisions and legislative action. In other words, the country-to-country differences in patent laws, and the different economic choices patentees must make as a result, suggest that patentees should be able to reserve their U.S. patent rights when making or authorizing foreign sales. 16 But Kirtsaengâs policy concerns indicate that that right should not extend to situations where the patentee is silent or unclear. If a patentee wishes to reserve its U.S. rights, it should be required to do so unmistakably. The patentee is in a better position to reserve its rights than the purchaser is to inquire into any reservation. A rule requiring reservation would protect both the interests of the authorized seller and the unsuspecting buyer. * * * * * * In conclusion, I would overrule our decision in Mallinckrodt as inconsistent with governing Supreme Court authority and overrule Jazz Photo to the extent that it imposes a blanket ban on foreign exhaustion. I would recognize foreign exhaustion where the U.S. rights holder has not notified the buyer of its. retention of the U.S. patent rights. I respectfully dissent from the majorityâs contrary holdings. . See, e.g., Keeler, 157 U.S. at 666 , 15 S.Ct. 738 (âWhether a patentee may protect himself and his assignees by special contracts brought home to the purchasers is not a question before us, and upon which we express no opinion. It is, however, obvious that such a question would arise as a question of contract, and not as one. under' the inherent meaning and effect of the patent laws.â) (emphasis added); see also Quanta, 553 U.S. at 637 n. 7, 128 S.Ct. 2109 . . .Even before Motion Picture Patents, the Court had declined to follow A.B. Dick. The Court had held that a packaging notice that set a minimum retail price for a patented tonic, Bauer & Cie v. OâDonnell, 229 U.S. 1, 8 , 33 S.Ct. 616 , 57 L.Ed. 1041 (1913), and a purported âLicense Noticeâ that operated to fix the price at which phonographs could be resold, Straus v. Victor Talking Mach. Co., 243 U.S. 490, 500-501 , 37 S.Ct. 412 , 61 L.Ed. 866 (1917), were not enforceable under the patent laws. In Straus , the Court stated that courts "would be perversely blind if they failed to look through such an attempt as [the] 'License Notice' thus plainly is to sell property for a full price, and yet to place restraints upon its further alienation, such as have been hateful to the law from Lord Coke's day to ours, because obnoxious to the public interest.â Id. . The majority relies on the fact, that the Supreme Court in Quanta did not expressly overrule Mallinckrodt, as urged by both the petitioner and the government. The majority cites no authority for the proposition that the Courtâs failure to explicitly overrule circuit authority is an implicit endorsement of that authority. Influential commentators have viewed the Supreme Courtâs decision in Quanta as having overruled our .decision in Mallinckrodt. See, e.g., 12 Phillip A. Areeda & Herbert Hovenkanip, Antitrust Law ¶ 2044, at 300 & 301 n. 15 (3d ed. 2012) ("In its Quanta Computer decision the Supreme Court reaffirmed a strong version of the first-sale doctrine, striking down more relaxed Federal Circuit precedent.... To the extent that Mal-linckrodt relaxed the first-sale doctrine, it was overruled by Quanta Computer.... â). . Mitchell stated that "where the sale is absolute, and without any conditions, the rule is well settled thatâ the patentee's rights are exhausted. 83 U.S. at 548 ; see also Motion Picture Patents, 243 U.S. at 516 , 37 S.Ct. 416 ; In re Paper Bag Cases, 105 U.S. 766, 770-71 (1881) ("The right of the owner of a patented machine, without any conditions attached to his ownership, to continue the use of his machine during an extended term of the patent, is well settled.â). . See Maj. Op. at 749 ("[Although some language in Univis , like language in other decisions in the area, can be taken out of context ... we do not think it appropriate to give broad effect to language in Univis , taken out of context, to support an otherwise unjustified conclusion here....â). . See also Nat. Res. Def. Council, Inc. v. Nuclear Regulatory Commân, 216 F.3d 1180, 1189 (D.C.Cir.2000) (â[C]arefully considered language of the Supreme Court, even if technically dictum, generally must be treated as authoritative.â) (quotation marks and citation omitted); Alston v. Redman, 34 F.3d 1237, 1246 (3d Cir.1994) (âThough this passage ... is essentially dicta ... we must consider it with deference, given the High Courtâs paramount position in our three-tier system of federal courts, and its limited docket.â) (quotation marks and citation omitted); Hendricks Cty. Rural Elec. Membership Corp. v. N.L.R.B., 627 F.2d 766 , 768 n. 1 (7th Cir.1980) (âA dictum in a Supreme Court opinion may be brushed aside by the Supreme Court as dictum when the exact question is later presented, but it cannot be treated lightly by inferior federal courts until disavowed by the Supreme Court.â) (citation omitted), rev'd on other grounds, 454 U.S. 170 , 102 S.Ct. 216 , 70 L.Ed.2d 323 (1981). . See, e.g., Quanta, 553 U.S. at 636-38 , 128 S.Ct. 2109 (concluding â[t]he authorized sale of an article that substantially embodies a patent exhausts the patent holderâs rightsâ); Univis, 316 U.S. at 249 , 62 S.Ct. 1088 (â[T]he authorized sale of an article which is capable of use only in practicing the patent is a relinquishment of the patent monopoly with respect to the article sold.â); Bos. Store of Chi., 246 U.S. at 25 , 38 S.Ct. 257 (Sale âplaced the machine so sold beyond the confines of the patent law....â); Mitchell, 83 U.S. at 548 ("[WJhen [the patented article] rightfully passes from the patentee to the purchaser, [it] ceases to be within the limits of the monopoly.â); McQuewan, 55 U.S. at 549 (â[W]hen the machine passes to the hands of the purchaser, it is no longer within the limits of the monopoly.â). . See also Maj. Op. at 735 (âno sound reasonâ); id. at 736 (âformalistic distinctions of no economic consequenceâ) (quotation marks and citation omitted); id. at 743 (âno good reasonâ); id. at 744 (âno basis in the policy of the patent statuteâ); id. at 745. (âunjustifiably formalisticâ). . Similarly, the Court explained in Mitchell that purchasers "who buy goods from one not the owner, and who does not lawfully represent the owner, however innocent they may be, obtain no property whatever in the goods, as no one can convey ... any better title than he owns, unless the sale is made in market overt, or under circumstances which show that the seller -lawfully represented the owner.â 83 U.S. at 550 . . The Supreme Court has never even decided that an authorized sale by a licensee with a limited license does not exhaust the patenteeâs patent rights in the item sold. That question was reserved by the Court in General Talking Pictures. 305 U.S. at 127 , 59 S.Ct. 116 (âNor have we occasion to consider the effect of a âlicenseeâs noticeâ which purports to restrict the use of articles lawfully sold.â). . Id. (stating that âcompetition, including freedom to resell, can work to" the advantage of the consumerâ and noting that ârestraints ÂĄ with âmanifestly anticompetitive effectsâ are per se illegalâ) (quoting Leegin Creative Leather Prods., Inc. v. PSKS, Inc., 551 U.S. 877, 886 , 127 S.Ct. 2705 , 168 L.Ed.2d 623 (2007)). Even on its own terms, the majorityâs view that Lexmarkâs post-sale restrictions can be pro-competitive is questionable. The majority posits that Lexmarkâs single-use/no-resale restriction may not be inconsistent with the antitrust laws because "non-price vertical restraints are to be judged by a rule of reason.â Maj. Op. at 753. But Lexmarkâs single-use/ no-resale restriction imposed on the defendants is not a vertical restraint. "Restraints imposed by agreement between competitors have traditionally been denominated as horizontal restraints, and those imposed by agreement between firms at different levels of distribution as vertical restraints.â Bus. Elecs. Corp. v. Sharp Elecs. Corp., 485 U.S. 717, 730 , 108 S.Ct. 1515 , 99 L.Ed.2d 808 (1988). A restriction on the defendantsâ resale is not a restraint on âfirms at different levels of distribution,â as between a manufacturer and.a dealer. The restraint is applied to competitors in the sale of Lexmark ink cartridges. Reconditioned durable ' products compete with new products in the same market. See United States v. Aluminum Co. of Am., 148 F.2d 416, 424-25 (2d Cir.1945) (Hand, J.). And horizontal restraints of trade are ordinarily per se unlawful under the antitrust laws. See Natâl Collegiate Athletic Assân v. Bd. of Regents of Univ. of Okla., 468 U.S. 85, 100 , 104 S.Ct. 2948 , 82 L.Ed.2d 70 (1984); see also 2 Herbert Hovenkamp, Mark D. Janis, Mark A. Lemley, & Christopher R. Leslie, IP and Antitrust § 30.2, at 30-2 (2d ed. Supp. 2010) ("A restraint is âhorizontalâ when at least two of the relevant participants are (1) actual rivals or (2) would or could be actual rivals but for the restraint.â). . Foreign law cannot affect, of course, the significance of the reservation of U.S. patent rights. See Boesch, 133 U.S. at 703 , 10 S.Ct. 378 . . Even if these trade agreements were to the contrary, the acts implementing each agreement make clear that they cannot override U.S. patent law. See United States-Morocco Free Trade Agreement Implementation Act, Pub.L No. 108-302, § 102, 118 Stat. 1103 (2004) ("No provision of the Agreement, nor the application of any such provision to any person or circumstance, which is inconsistent with any law of the United States shall have effect.... Nothing in this Act shall be construed ... to amend or modify any law of the United States.â); United States-Australia Free Trade Agreement Implementation Act, Pub.L. No. 108-206, § 102 , 118 Stat. 919 (2004) ("No provision of the Agreement, nor the application bf any such provision to any person or circumstance, which is inconsistent with any law of the United States shall have effect.â); United States-Singapore Free Trade Agreement Implementation Act, Pub.L. No. 108-78, § 102 , 117 Stat. 948 (2003) (same). . Kirtsaeng recognized that the "first saleâ doctrine- "played an important role in American copyright lawâ even before its first codification by the Copyright Act of 1909, § 41, 35 Stat. 1084 . 133 S.Ct. at 1363 (citing Bobbs-Merrill Co. v. Straus, 210 U.S. 339 , 28 S.Ct. 722 , 52 L.Ed. 1086 (1908)). . There, is, significant uniformity and reciprocity in international copyright law, see Kirtsaeng, 133 S.Ct. at 1359-60 (observing that American copyright laws protect âworks - âfirst publishedâ in any one of the nearly 180 nations that, have signed a copyright treaty with the United Statesâ), but as the majority describes, the availability and scope of patent protection differ from country to country. See Maj. Op. at 761-62.Case Information
- Court
- U.S. Court of Appeals
- Decision Date
- February 12, 2016
- Citation
- 816 F.3d 721
- Status
- Precedential