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In the case before the Supreme Court, a South Korean company, LG Electronics Inc., licensed some of its patents to Intel Corp.LG then sued some of Intel's customers for patent infringement, saying they owed royalties to LG because the customers combined Intel's microprocessors and chipsets with non-Intel products.
Software companies have long claimed that software is not sold to users but licensed, and many software licences forbid the resale of the software. A Seattle District Court has found, though, that the packages of software in question were sold, not licensed, and that the licence is not binding on subsequent buyers.