Legal analysis: exhaustion of patent right refers to the use, promise to sell, sell or import of patented products or products directly obtained according to patented methods by the patentee or its authorized units or individuals. After the patented product (including the product directly obtained according to the patented method) manufactured by the patentee himself or licensed by others is legally put on the market, anyone who sells or uses the product no longer needs the license or authorization of the patentee, which does not constitute infringement.

Legal basis: Article 444 of the Civil Code of People's Republic of China (PRC) pledges the property rights in intellectual property rights such as the exclusive right to use registered trademarks, patents and copyrights. The pledge is established at the time of pledge registration.

After the pledge of property rights in intellectual property rights, the pledgor may not transfer or license others to use them, unless the pledgor and the pledgee agree through consultation. The pledgor shall pay off the debts in advance to the pledgee or deposit the price for transferring or allowing others to use the pledged intellectual property rights.