In the 1945 case Scott Paper Co. v. Marcalus Manufacturing Co., Inc., the U.S Supreme Court ruled in favor of Scott Paper Company, asserting that a patent owner cannot prevent the use of his invention by someone who has lawfully obtained it, even if they have their own expired or surrendered patent covering it. The dispute began when Marcalus Manufacturing Company sued Scott Paper for infringing on its patented process for making paper towels and napkins. However, one of the inventors had previously assigned his rights to an earlier similar patent to Scott Paper which later expired before Marcalus's new patent was issued. The court held that once a patent is exhausted through sale or expiration, it enters into public domain and can be used freely without constituting infringement.

In the dissenting opinion for Scott Paper Co. v. Marcalus Manufacturing Co., Inc., Justice Robert H. Jackson disagreed with the majority's decision that a patent holder could prevent others from using his invention even after he had sold it to them, arguing this was contrary to public policy and common sense. He believed that once an inventor sells his patented product, he should not be able to control how it is used or restrict its use in any way because doing so would limit competition and stifle innovation. Furthermore, Justice Jackson argued that allowing such restrictions would give too much power to patent holders at the expense of consumers and other inventors who might want to improve upon or modify existing inventions.