A more thorough explanation:

The patent-exhaustion doctrine is a rule that states that the sale of a patented product without any conditions ends the patent owner's right to control its use. However, the patent owner can still impose limitations through a contract or license, as long as it does not lead to anticompetitive patent misuse.

Suppose a company holds a patent for a new type of smartphone. If the company sells the smartphone to a customer, the patent owner's right to control the use of the smartphone is exhausted. The customer can use, repair, and resell the smartphone without any interference from the patent owner. However, the patent owner can still impose limitations on the use of the smartphone through a contract or license.

The first-sale doctrine is a similar principle that applies to copyrighted works. It states that the purchaser of a physical copy of a copyrighted work, such as a book or CD, can give or sell that copy to someone else without infringing the copyright owner's exclusive distribution rights. The copyright owner's distribution right is said to be exhausted with regard to that physical copy.

Suppose a person buys a physical copy of a book from a bookstore. The person can lend, sell, or give away the book without infringing the copyright owner's exclusive distribution rights. However, the person cannot make copies of the book without the copyright owner's permission.

These examples illustrate how the patent-exhaustion doctrine and the first-sale doctrine limit the control that patent and copyright owners have over their products after they are sold. These doctrines allow customers to use, repair, and resell the products without interference from the owners, as long as they do not violate any contractual or licensing agreements.