Cross License Agreement Meaning

Posted: December 6, 2020 in Uncategorized

Because of these potential drawbacks, it is considered unwise for a company to add its critical technology patents to cross-licensing agreements. It is possible to add clauses that reduce direct competition between cross-licensing partners. Some examples of cross-licensing for intellectual property are some identifiable companies: in addition to the general benefits, some cross-licensing contracts are based on a state of license, which saves even more money. While the benefits far outweigh the costs, these agreements are legal contracts that companies enter into with their competitors. For this reason, companies considering this type of contract should always consult a qualified lawyer in order to preserve their own interests. In patent law, a cross-licensing agreement is an agreement under which two or more parties issue each other a license for the exploitation of the object claimed in one or more of the patents. [1] As a general rule, this type of agreement takes place between two parties in order to avoid litigation or to settle infringement proceedings. [2] Very often, the patents held by each party cover different essential aspects of a given commercial product. By granting a cross-licensed, each party retains its freedom to market the product. The term “cross-licensing” implies that neither party pays a silver licence to the other party, which may be the case. But cross-licensing is not just an exchange to fend off intellectual property lawyers or reduce licensing fees – it can and should be the basis for future alliances that foster the flow of knowledge and stimulate innovation after licensing.

Studies have shown that the success of the duopoly crossing can be greater in favour of a monopoly scenario. Among the main advantages of cross-licensing: a cross-licensing agreement is a mandatory contract between several parties, each party having rights to a product, technology, research or something else. These types of agreements are beneficial in the area of intellectual property. Cross-licensing agreements are generally concluded between companies holding patents on different facets of the same product. They enter into an agreement excluding each of them from any litigation relating to infringement disputes Cross Licensing refers to the cross-licensing agreement between patent holders to avoid disputes over conflicting patents. It helps preserve the financial incentives of inventors to commercialize their existing innovations and to carry out new research that can be patented. There are a few recognized patent pools, such as MPEG-2, RFID and DVD, that are industry-specific.

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