Licensing Law Materials

Table of Contents

SECTION 1: Overview
SECTION 2: What Law Applies?
SECTION 3: Contract Formation
SECTION 4: Interpreting Licenses
SECTION 5: Exclusive Licenses
SECTION 6: Scope of License
SECTION 7: Royalties and License Fees
SECTION 8: Warranties
SECTION 9: Other Selected Terms and Issues
SECTION 10 : Implied Licenses
SECTION 11: Breach and Remedies
SECTION 12: Contract Doctrines that Limit Terms
SECTION 13: Limits Grounded in Property Law
SECTION 14: Antitrust Law
SECTION 15: Bankruptcy
SECTION 16: Secured Financing
SECTION 17: Open Source Licenses

 

Table of Contents in Detail

SECTION 1: Overview

A. Definitions of License
             (1)What is a License?
             (2) License Compared to Sale of Copy.

SECTION 2: What Law Applies?

A. State Law
             (1) Common Law
             (2) UCC Article 2
             (a). Software
             (b). Other Licenses
             (3). UCC Article 2A
             (4). UCITA
             (5) Other State Statutes
B. Intellectual Property Law
C. Which State Law: Contractual Choice of Law
D. Contractual Choice of Judicial Forum
             (1) Interpretation of Clause
             (2) Enforceability
E. Arbitration Clauses

SECTION 3: Contract Formation
Part I. Generally

A. Objective Manifestations of Assent
B. Contract Formation Rules
             (1). Open or Incomplete Terms
             (2). Different or Conflicting Terms
             (3). Quasi Contract
C. Formalities: Statute of Frauds
D. Recording Statutes

Part II. Selected Applications

E. Preliminary Agreements
F. Idea Submissions
G. Online Licenses
H. Shrinkwrap Licenses
I. Modification of Terms

SECTION 4: Interpreting Licenses

A. State Law Governs
B. Intellectual Property Rules
C. Interpretation Rules
             (1). Purpose and Commercial Context
             (2). Interpret Ambiguities Against the Drafter
             (3) Interpret to Protect Rights Holder
             (4) Interpret to Avoid Absurd Results
             (5) Practical Context: Trade use, course of dealing etc.
D. Parol Evidence; Merger Clauses
E. Precondition of Ambiguity
F. Interpreting Particular Terms
G. Covenants vs. Conditions

SECTION 5: Exclusive Licenses

A. Type of Transaction
B. Licensor Obligations
C. Licensee Obligations
D. Exclusive Licensee: Standing to Sue
E. Validity of Licensor's Subsequent Licenses
F. Transferability

SECTION 6: Scope of License

A. Meaning and import of scope
B. Interpretation of Scope Provisions
             (1). Existing Property
             (2). Future Property or Property in Transition
             (3). Property with Multiple Manifestations
             (4). New Technology: Motion Pictures, Video and Television
             (5). Coverage of Digital Uses
             (6). Upgrades
C. Rights and Uses Covered
D. Field of Use Restrictions
E. Reservation of Rights by Licensor
F. Digital Enforcement of Scope: DMCA 1201
G. Location of Use
H. Permitted Users
I. Licensee Modifications
J. Restrictions on Distribution and Resale
K. Internal Use Only

SECTION 7: Royalties and License Fees

A. Royalty in General
B. Extended Royalty Base
C. Extended Royalty Duration
D. Verification Procedures
E. Most Favored Licensee Clauses
F. Royalty Escalation Clauses
G. Breach of Royalty Obligation
H. Assignment of Royalties

SECTION 8: Warranties
Part I. Implied Warranties

A. General Rule: No Implied Warranties
B. Title-Related Implied Warranties
C. Implied Warranties of Quality
             (1). Informational Content
             (2). Services
             (3). Goods
D. Disclaimers of Implied Warranty

Part II. Express Warranties

E. Express Warranties in General
             (1). Express Title-related Warranties
             (2). Express Quality Warranties

SECTION 9: Other Selected Terms and Issues

A. Duration
             (1). Absence of Agreed Terms
             (2). Express Terms on Duration
B. Termination
C. Assignability of Contract Rights
             (1). Absent Contract Term
             (2). License Terms Precluding Assignment
             (3). Bona Fide Purchaser of License
D. Ownership of Copy
              (1). In a license
              (2). In a flawed development contract
E. Non-Disclosure
F. No Reverse Engineering Clauses
G. No Comment Clauses
H. Noncompetition Clauses
I. No Contest Clauses and Estoppel
J. Quality Control in Trademark License
K. Patent Marking
L. Good Faith
M. Best Efforts
N. Fiduciary Obligations
O. Section 117 Defenses
P. Licensor Duty to Protect Value of Rights

SECTION 10 : Implied Licenses

A. Implied License Doctrine; General
B. Licenses Implied from Conduct
C. Implied to Fill Gaps in Express Grants
D. Contributions to Collective Works
E. Implied Licenses Upon Sale
F. Implied in Law in General

SECTION 11: Breach and Remedies

A. Defining Breach
B. Waiver and Estoppel by Conduct

Part I. Type of Breach

C. Material Breach Defined
             (1). Common Law
             (2). Contract Terms
D. Relationship Between Breach and Infringement

Part II. Non-monetary Remedies

E. Cancellation, Rescission or Termination
             (1). Post-Cancellation: Preventing Continued Use
             (2). Electronic Self-Help
             (3) Return of the property

Part III. Damages as a Remedy

F. Common Law
G. Damages Under UCC Article 2
H. Damages Under UCC Article 2A
I. Double Recovery Issues

Part IV. Contract Limitation on Remedy

J. General Remedy Limitations
K. Setting a Cap
L. Terms Concerning Cancellation
M. Liquidated Damages

SECTION 12: Contract Doctrines that Limit Terms

A. Unconscionable Terms
B. Unconscionable Termination of License

SECTION 13: Limits Grounded in Property Law
Part I. Preemption

A. Preemption in General
B. Patent Law Preemption
C. Copyright Preemption and Contract

Part II. Misuse

D. General Misuse Doctrine
E. Patent Misuse
F. Copyright Misuse

SECTION 14: Antitrust Law

A. Rule of Reason and Per Se Rules
B. Tying Arrangements
C. Package Licenses and Patent Pools
D. Royalty Extending Beyond Rights
E. Refusals to License
F. Monopolization
G. Antitrust Injury
H. Price Fixing

SECTION 15: Bankruptcy

A. Property of the Estate
B. Type of Claim
C. Automatic Stay
D. Bankruptcy Sales Free of Interests
E. Licenses as Executory Contracts
             (1). Licensor as Bankrupt
             (2). Licensee as Bankrupt

SECTION 16: Secured Financing

A. Defining Collateral
B. Filing, Perfection and Registration

SECTION 17: Open Source Licenses



Selected Cases Selected Articles UCITA Comments on Licensing Home Contact Us IPIL Blog Terms of Service