Multimedia Patent Trust (“MPT”) filed a patent infringement action against several defendants, including DirecTV and Vizio, which alleged infringement of multiple patents related to video compression technology. DirecTV and Vizio answered the complaint an alleged affirmative defenses of patent exhaustion and license.
The parties filed cross motions for summary judgment on the issue of exhaustion and license. DirecTV contended that its licensed suppliers made authorized sales pursuant to a 2002 license and a 2009 license and that these authorized sales exhausted MPT’s patent rights . MPT argued that even though DirecTV’s manufacturers are licensed, the manufacturers’ sales of certain products exceeded the scope of the license. In response, DirecTV argued that patent exhaustion applied because DirecTV’s licensed suppliers’ sales to DirecTV were authorized sales, and authorized sales exhaust a patentee’s rights to sue others who subsequently use or sell the same article that allegedly infringes the patents.
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