Brulotte v. Thys Co.
United States Supreme Court
379 U.S. 29 (1964)
Thys (plaintiff) licensed hop-picking machines to Brulotte (defendant) under a deal covering 12 patents (only 7 of which the machines actually used), charging a per-season or per-harvest royalty; all seven relevant patents expired by 1957, but the license's royalty obligations continued well past that date. Brulotte stopped paying both pre- and post-expiration royalties, arguing the agreement was unenforceable patent misuse for extending the patent monopoly beyond its term; the trial court and Washington Supreme Court both sided with Thys, treating the extended royalty period as a reasonable way to spread out payment for the machine's use, and the U.S. Supreme Court granted certiorari.
Whether a patentee may collect royalty payments under a licensing agreement that extend beyond the expiration date of the underlying patents.