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US Supreme Court rules against LG, will limit patent royalties

Darren Murph

It has taken long enough, but the US Supreme Court has finally ruled in the patent royalties case between Quanta Computer and LG Electronics. Justice Clarence Thomas noted that "because the exhaustion doctrine applies to method patents and because the license authorizes the sale of components that substantially embody the patents in suit, the sale exhausted all patents," essentially hammering down any of LG's lingering hopes to extract additional royalties from Quanta (or anyone else tangled up in a similar situation). Put simply, the court ruled that LG couldn't solicit more royalties from firms buying LG-provided Intel products, of which Intel had already paid patent royalties on. So much for double dipping in the royalties pool, huh?

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