Below is an essay on "Licensing Intellectual Property" from Anti Essays, your source for research papers, essays, and term paper examples.
The main question this hypothetical raises before the Court is whether the non exclusive license which Licensor granted to Licensee gave Licensee the right to sell any and all parts of Licenses Products.
Court’s have previously looked to the interpretation of license agreements to determine the scope of a licensee’s rights. In Eureka Co. et. Al, v. Henney Motor Co., 14 Fed. Supp. 764, for example, the plaintiff, a sub-licensee, appealed to the Court for an injunction against the defendant, a licensee, for misstatement questioning their interests in the patent. The issue that the claim raised before the Court was whether the plaintiff had the right to sell parts that embodied the patent to manufactures in their production of their own hearses. The Court held that in order to determine whether the plaintiff had that right, the Court would have to look to the language of the agreement. The Court reasoned that by looking at the interpretation of the contract, they would be able to find out the intentions of the parties and therefore determine what the scope of the sub-licensee’s rights were when at the time the agreement was created.
In the Eureka, 91 F.2d 708, the Court looked into the terms of the contract and concluded that the language only gave the plaintiff the right to sell the patented hearses as a whole and that they had no right to sell parts of the patented hearse’s apart from the whole product. The sub-license agreement gave the plaintiff the right to:
-Make the patented product in sub-licensee’s principle place of business, and to use and sell the products in the U.S. and throughout the world
-To keep accurate records and accounts of the shipment of the patented product
-Promote the sale of the patented product with good faith/best efforts
According to the Court, the language could be interpreted to prove that the parties intended for the plaintiff to sell the finished patented product only – there is no mention of the sale of any or all...