Exhaustion of Rights

Exhaustion of Rights refers to the legal principle that once a product is sold, the original seller's rights to control the further distribution of that product are diminished. For example, if a company sells a DVD, they cannot stop someone from reselling it later. This principle helps ensure that once a product legally enters the market, it can circulate freely, promoting fair competition and consumer access. It’s important in copyright and trademark law, preventing manufacturers from controlling the product after it has been legitimately sold to a consumer.