Field of Use License: A Comprehensive Guide to Its Legal Framework

Definition & Meaning

A field of use license is a specific type of intellectual property license that restricts the rights granted to a licensee to a defined area of use. This means that the licensee can only utilize the licensed technology for certain applications, rather than for all possible uses. This arrangement allows the licensor to maintain control over how their intellectual property is used and to collaborate with other entities for different applications of the same technology. Field of use licenses are commonly applicable in industries such as electrical engineering, computing, chemistry, and healthcare, where technologies often have multiple distinct uses.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A pharmaceutical company licenses a new drug formulation to a manufacturer, allowing them to produce and sell the drug only in the North American market. This restricts the manufacturer from selling the drug in Europe or Asia.

Example 2: A software developer grants a field of use license to a gaming company, permitting the use of a specific software tool solely for developing mobile games, while the developer retains rights to use the tool for other applications (hypothetical example).

State-by-state differences

Examples of state differences (not exhaustive):

State Field of Use License Variations
California Commonly used in tech and entertainment industries.
New York Often applied in financial services and media.
Texas Frequently utilized in energy and manufacturing sectors.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

What to do if this term applies to you

If you are considering a field of use license, it is important to clearly define the scope of use in your agreement. You can explore US Legal Forms for ready-to-use templates that can help you draft a suitable licensing agreement. If your situation is complex or involves significant intellectual property, consulting a legal professional is advisable.

Quick facts

  • Typical duration: Varies by agreement
  • Common industries: Technology, healthcare, pharmaceuticals
  • Potential fees: Based on royalties or fixed payments
  • Jurisdiction: Typically governed by state law

Key takeaways