User:Econterms/springing patent license
A springing license is a contingent license of intellectual property, e.g. a copyright, patent, or trademark. The license contract between a patent holder and a potential user of the patented technology can be agreed on, but does not grant the license at that moment. Instead it "springs" into effect later once a specified time has passed or conditions are met. Relevant conditions include the sale of a patent to an NPE, or the dissolution/acquisition/bankruptcy of one of the parties.
Definition[edit]
Definition and links to sources are at Creative Commons.[1] They did a survey and papers around 2018.
Relevant situations[edit]
Sale of the patent to an NPE. Examples.[2]
Bankruptcy or dissolution of the licensor. A recurring idea is that a license should spring into place if the licensor goes bankrupt. However this does not appear to be enforceable in the U.S.[3][4]
History[edit]
The term dates back at least as far as 2001:
- In re Storm Technology Inc., 260 B.R. 152, 157 (Bankr. N.D. Cal. 2001), the court held that a “springing” patent license – it was to “spring” into effect if the licensor did not repay a corporate note on time – was not covered by Bankruptcy Code § 365(n). The licensor had declared bankruptcy before the note’s maturity date, and therefore, the licensee had only a contingent right to a license, not an actual license, at that time.[5]
See also springing power of attorney We can refer to a triggering event, and conditionality.
Are there international examples?
References[edit]
- ^ Springing Licenses at Creative Commons site
- ^ http://blog.ipfolio.com/alternative-ip-strategies
- ^ https://www.lawinsider.com/clause/springing-license
- ^ Bob Eisenbach. Protecting IP Rights From A Licensor’s Bankruptcy: What You Need To Know About Section 365(n). IN THE (RED), The Business Bankruptcy Blog. Cooley LLP. July 30, 2009
- ^ Lori E. Lesser. 2003. Bankruptcy and Licensing. Simpson Thacher & Bartlett, LLP