The need for patent licenses arises in a variety of circumstances. An owner may actively seek to license its patent (or portfolio of patents) to another business. A license might be used to resolve a claim of infringement, or a patent license may be a part of a joint venture between two businesses.
When negotiating a patent license, it is important to consider the circumstances and specific business needs. When resolving a patent infringement claim, a business will want to ensure that the license covers all of its potential uses of the patent, and that all necessary parties are released from any legal claims. Negotiating the payment involves evaluating the strength of the patent, the potential damages, and any legal defenses.
When a business transaction involves a patent license, issues such as exclusivity, fields of use, and the form of payment/royalty must be considered. Understanding the terms that are commonly used in the field and how they interplay will help you negotiate the most appropriate licenses for your business.
ASG Law assist clients with evaluating and negotiating patent licenses. Contact us if you want to learn more about how we can assist your business with patent licensing.