Understanding the Antishelving Clause in Patent and Trademark Law
Definition & Meaning
An antishelving clause is a provision in a patent licensing agreement that permits a licensee to commercially exploit a patented invention for a specified period. This clause requires the licensee to inform the patent holder if they decide to cease selling or manufacturing the invention. Typically, the licensee must actively use the patent; otherwise, they risk losing their license or exclusivity rights. Antishelving clauses can also be found in trademark licensing agreements and are sometimes referred to as antishelving provisions or shelving clauses.
Legal Use & context
Antishelving clauses are primarily used in patent law, particularly in licensing agreements. They ensure that licensees are obligated to utilize the patented invention actively. This term is relevant in various legal contexts, including:
- Intellectual property law
- Contract law
- Trademark law
Users can manage these agreements themselves using legal templates available from services like US Legal Forms, which offer resources drafted by qualified attorneys.
Real-world examples
Here are a couple of examples of abatement:
Example 1: A company licenses a patented technology for a new type of software. The antishelving clause requires them to actively market and sell the software. If they stop selling it for more than six months, they must inform the patent holder, or they risk losing their license.
Example 2: A manufacturer licenses a patented product design. Under the antishelving clause, they must produce and sell the product regularly. If they decide to halt production, they must notify the patent owner to maintain their rights. (hypothetical example)