Field of Use Limitation: Key Insights into Patent Licensing Restrictions
Definition & Meaning
A field of use limitation is a specific clause in a patent license that restricts how a patent holder can grant rights to a licensee. This provision defines the particular areas or industries where the licensee is allowed to manufacture a patented product or use a patented process. It also outlines the fields from which the licensee is excluded. If a licensee operates outside these defined boundaries, they may be committing patent infringement.
Legal Use & context
Field of use limitations are commonly found in patent law. They are used to delineate the rights of a licensee and ensure that the patent owner retains control over how their invention is utilized. This concept is relevant in various legal contexts, including:
- Intellectual property law
- Antitrust law, particularly when limitations may affect market competition
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Real-world examples
Here are a couple of examples of abatement:
Example 1: A company holds a patent for a new type of biodegradable plastic. They grant a license to another company to manufacture this plastic, but only for packaging products. If the licensee starts using the patented technology to create plastic utensils, they would be infringing on the patent.
Example 2: A software developer licenses a patented algorithm for use in healthcare applications only. If the licensee uses the algorithm in a financial application, it would violate the field of use limitation. (hypothetical example)