Abstract: A patent license agreement with a field of use provision limiting the scope of the licensed activity did not contractually obligate the licensee to refrain from acting outside the scope of the field of use. As a result, a licensee’s infringing activity outside the scope of the field of use did not breach the license agreement, and a patent licensor was preliminarily enjoined from treating a license agreement as terminated by a material breach.
Patent license agreements may limit the scope of licensed activities to a certain field of use for the patented technology. In a recent case, the Federal Circuit considered whether a field of use provision imposed a contractual obligation on the licensee to refrain from acting outside the defined field of use.
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