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Avoiding Common Mistakes in Patent and Technology Licensing (PowerPoint slides)
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1-113
© Practising Law Institute
1-114
© Practising Law Institute
AVO
IDIN
G C
OM
MO
N M
ISTA
KES
IN
PATE
NT
AN
D T
ECH
NO
LOG
Y LI
CEN
SIN
G
Jose
ph Y
ang,
Esq
.Pa
tent
Esqu
e La
w G
roup
, LLP
Los
Alto
s an
d M
enlo
Par
k, C
alifo
rnia
joe@
pate
ntes
que.
com
PA
TE
NT
ES
QU
E L
AW
GR
OU
P,
LL
P
Prac
tisin
g La
w In
stitu
teA
dvan
ced
Lice
nsin
g A
gree
men
ts 2
017
San
Fran
cisc
o (J
an. 2
4-25
, 201
7)N
ew Y
ork
City
(Mar
. 6-7
, 201
7)C
hica
go (M
ay 1
1-12
, 201
7)
1-115
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017
Pat
entE
sque
Law
Gro
up, L
LP.
Una
utho
rized
repr
oduc
tion
proh
ibite
d.2
AVO
IDIN
G C
OM
MO
N M
ISTA
KES
IN
PATE
NT
& T
ECH
NO
LOG
Y LI
CEN
SIN
G
1.Jo
int O
wne
rshi
p (U
sual
ly B
ad!)
2.Te
chno
logy
vs.
Inte
llect
ual P
rope
rty
(The
y’re
Not
the
Sam
e!)
3.A
Prom
ise
to G
rant
is N
ot a
Gra
nt (W
hen
You
Don
’t O
wn
Wha
t You
Pa
id F
or!)
4.D
iffer
ent T
ypes
of I
P G
rant
s (O
wne
rshi
p v.
Lic
ense
v. C
oven
ant N
ot
to S
ue)
5.En
forc
emen
t Rig
hts
vs. G
rant
Typ
e (T
hey’
re N
ot A
rbitr
ary
or
Inde
pend
ent!)
6.C
hang
e of
Con
trol
(Pla
n A
head
!)7.
Rep
s, W
arra
ntie
s &
Inde
mni
ficat
ion
(It’s
Not
Jus
t Boi
lerp
late
!)8.
Uni
nten
ded
Gra
nts
& C
onse
quen
ces
9.R
oyal
ty P
rovi
sion
s10
.N
egot
iatio
ns
1-116
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017
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entE
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Law
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up, L
LP.
Una
utho
rized
re
prod
uctio
n pr
ohib
ited.
3
CO
MM
ON
MIS
TAK
E #
1 –
JOIN
T O
WN
ERSH
IP
[TO
BE
DIS
CU
SSED
IN S
EPA
RAT
E TA
LK T
OM
OR
RO
W]
1-117
© Practising Law Institute
(C) 2
017
Pat
entE
sque
Law
Gro
up, L
LP.
Una
utho
rized
re
prod
uctio
n pr
ohib
ited.
4
CO
MM
ON
MIS
TAK
E #
2 –
TEC
HN
OLO
GY
VS. I
NTE
LLEC
TUA
L PR
OPE
RTY
A.
Tech
nolo
gy
1.Ta
ngib
les
and
Inta
ngib
les
= Th
ings
a.P
roce
sses
, tec
hniq
ues,
kno
w-h
ow,
algo
rithm
s, s
oftw
are,
con
tent
, dat
a,
data
base
s, p
roto
cols
, man
ufac
turin
g pr
oces
ses,
bus
ines
s or
lega
l pla
ns, e
tc.
B.
Inte
llect
ual P
rope
rty =
Leg
al R
ight
s
1.P
aten
ts, c
opyr
ight
s, tr
ade
secr
ets,
and
trad
emar
ks
2.R
egis
tratio
ns o
f, ap
plic
atio
ns to
app
ly fo
r, an
d pr
iorit
y rig
hts
base
d on
, the
fore
goin
g
I.TH
EY
’RE
NO
T TH
E S
AM
E!
1-118
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(C) 2
017
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entE
sque
Law
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up, L
LP.
Una
utho
rized
re
prod
uctio
n pr
ohib
ited.
5
C.
Pro
blem
s w
ith C
omm
ingl
ing
Tech
nolo
gy +
IP:
Exa
mpl
e
1.D
efin
e “T
echn
olog
y” =
del
iver
able
s +
pate
nts
2.G
rant
lice
nse
to p
ract
ice
Tech
nolo
gya.
Lice
nse
to p
ract
ice
pate
nts
inde
pend
ent o
f the
del
iver
able
s
3.G
ive
noni
nfrin
gem
ent g
uara
ntee
for
Tech
nolo
gya.
Pro
tect
s lic
ense
e’s
own
impl
emen
tatio
ns u
nrel
ated
to th
e de
liver
able
s
1-119
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017
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entE
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up, L
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Una
utho
rized
re
prod
uctio
n pr
ohib
ited.
6
D.
Tech
nolo
gy G
rant
v. I
P G
rant
?
1.P
ure
Tech
nolo
gy G
rant
-app
ropr
iate
for f
inis
hed
prod
uct (
e.g.
, I li
cens
e yo
u to
ope
rate
my
car)
2.P
ure
IP G
rant
-app
ropr
iate
if n
o te
chno
logy
tran
sfer
(e
.g.,
I lic
ense
you
to m
ake
and
sell
prod
ucts
and
pr
oces
ses
cove
red
by U
.S. p
aten
t no
x,xx
x,xx
x)
3.E
very
thin
g E
lse
-Be
very
spe
cific
:
a.Tr
ansf
erab
ility
(per
sona
l v. t
rans
fera
ble)
;
b.O
wne
rshi
p/ex
clus
ivity
(ass
ignm
ent;
excl
usiv
e v.
non
excl
usiv
e lic
ense
);
c.IP
type
(e.g
., pa
tent
, cop
yrig
ht, t
rade
sec
ret,
etc.
);
a.C
arrie
s an
impl
ied
licen
se to
use
all
nece
ssar
y IP
of t
he li
cens
or
1-120
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017
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entE
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up, L
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rized
re
prod
uctio
n pr
ohib
ited.
7
d.R
ight
to E
xplo
it
i. P
aten
t: m
ake,
use
, sel
l, of
fer f
or s
ale,
im
port
e.Te
chno
logy
;
f.Li
cens
ed F
ield
;
g.Te
rrito
ry; a
nd
h.Li
cens
e Te
rm(m
ay n
ot b
e sa
me
as te
rm o
f A
gree
men
t).
4.E
xam
ple:
I g
rant
you
a p
erso
nal n
onex
clus
ive
licen
se
unde
r U.S
. pat
ent 7
,654
,321
to m
ake
and
use
wid
gets
in
the
auto
mob
ile in
dust
ry in
the
U.S
. unt
il 12
/31/
15.
ii.
Cop
yrig
ht: c
opy,
dis
tribu
te, d
ispl
ay,
perfo
rm, c
reat
e de
rivat
ive
wor
ks, e
tc.
iii.
Trad
e S
ecre
t : u
se a
nd/o
r ad
hoc
iv.Tr
adem
ark :
use
and
/or a
d ho
c
1-121
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017
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entE
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up, L
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rized
re
prod
uctio
n pr
ohib
ited.
8
CO
MM
ON
MIS
TAK
E #
3 –
A PR
OM
ISE
TO G
RA
NT
IS N
OT
A G
RA
NT
A.
Agr
eem
ent t
o as
sign
is n
otan
ass
ignm
ent!
(e.g
., “I
will
assi
gn”;
“You
sha
ll ow
n”; “
I agr
ee to
ass
ign”
)
1.M
erel
y a
prom
ise
2.D
oes
not c
onve
y tit
le.
IPVe
ntur
e v.
Pro
star
,503
F.3
d 13
24
(Fed
. Cir.
200
7) (E
mpl
oyee
IP a
ssig
nmen
t agr
eem
ent
cont
aine
d m
ere
agre
emen
t to
assi
gn, n
otac
tual
as
sign
men
t). S
ee a
lso
Sta
nfor
d v.
Roc
he, 5
83 F
.3d
832
(Fed
. Cir.
200
9)
3.S
epar
ate
trans
actio
n w
ill be
requ
ired
to c
onve
y tit
le.
4.N
ot e
nfor
ceab
le a
gain
st b
ona
fide
purc
hase
rs fo
r va
lue
(e.g
., su
bseq
uent
ass
igne
es).
Film
Tec
, 93
9 F.
2d 1
568
(Fed
. Cir.
199
1)
I.W
HE
N Y
OU
DO
N’T
OW
N W
HAT
YO
U P
AID
FO
R
1-122
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entE
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up, L
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rized
re
prod
uctio
n pr
ohib
ited.
9
1.Le
gal t
itle
auto
mat
ical
lytra
nsfe
rred
whe
n in
vent
ion
crea
ted
and
appl
icat
ion
filed
C.
Sam
e is
sues
aris
e fo
r fut
ure
licen
ses
D.
Dra
fting
tip:
Alw
ays
get a
pre
sent
gra
ntof
futu
re
right
s! (e
.g.,
“I he
reby
ass
ign/
gran
t…”)
B.
Pre
sent
ass
ignm
ent o
f fut
ure
pate
nts
does
con
vey
(equ
itabl
e) ti
tle.
Film
Tec,
939
F.2
d 15
68 (F
ed. C
ir.
1991
)
1-123
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entE
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up, L
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re
prod
uctio
n pr
ohib
ited.
10
CO
MM
ON
MIS
TAK
E #
4 –
DIF
FER
ENT
IP G
RA
NT
TYPE
S
I.TY
PE
S O
F G
RA
NT
(US
ING
PAT
EN
T LA
W P
RE
CE
DE
NT)
A.
Labe
ls a
re n
ot d
eter
min
ativ
e
B.
Ass
ignm
ent
1.M
ust b
e in
writ
ing.
35
US
C 2
61.
1.C
ourts
will
cor
rect
inap
prop
riate
usa
ge
2.M
ay n
ot b
e w
hat p
artie
s in
tend
ed
2.Fo
rms:
a.Tr
ansf
er o
f “en
tire
right
, titl
e an
d in
tere
st”
1-124
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entE
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up, L
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rized
re
prod
uctio
n pr
ohib
ited.
11
3.H
ow
a.Fo
rmal
tran
sfer
of t
itle
b.In
form
ally,
by
trans
fer o
f “al
l sub
stan
tial r
ight
s”
c.N
OT
clai
m-b
y-cl
aim
(pat
ent)
d.N
OT
by fi
eld
of u
se
Pop
e, 1
44 U
.S. 2
48 (1
892)
. A
lso
see
Intl.
G
amco
, 504
F.3
d 12
73 (F
ed. C
ir. 2
007)
and
Luce
nt v
. Gat
eway
, inf
ra.
b.U
ndiv
ided
par
t of f
oreg
oing
(e.g
.,jo
int o
wne
rshi
p)
Rite
-Hite
, 56
F.3d
153
8 (F
ed. C
ir. 1
995)
; Wat
erm
an,
138
U.S
. 252
(189
0).
1-125
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entE
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re
prod
uctio
n pr
ohib
ited.
12
i.Y
ES
, whe
n:
--Li
cens
or re
tain
ed ri
ght t
o ob
tain
fore
ign
pate
nts;
--Li
cens
or h
ad re
vers
iona
ry in
tere
st if
Lic
ense
e w
ent
bank
rupt
or s
topp
ed p
rodu
ctio
n;
--Li
cens
or h
ad ri
ght t
o re
ceiv
e in
fring
emen
t dam
ages
fro
m 3
Ps
(b/c
form
of c
onsi
dera
tion
for a
ssig
nmen
t);
--Li
cens
ee w
as g
rant
ed ri
ght t
o su
e w
/obl
igat
ion
to
info
rm L
icen
sor;
and
--Li
cens
ee c
ould
sub
licen
se o
nly
with
Lic
enso
r's
cons
ent [
STR
AN
GE
]
(Res
ult:
Pur
porte
d ex
clus
ive
licen
se re
ally
ass
ignm
ent)
Vaup
el, 9
44 F
.2d
870
(Fed
. Cir.
199
1)
1-126
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017
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entE
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up, L
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rized
re
prod
uctio
n pr
ohib
ited.
13
ii.N
O, w
hen:
--G
rant
or re
tain
ed ri
ght t
o M
/U/S
for s
elf (
for s
elf a
nd
exis
ting
licen
sees
) [O
K];
--G
rant
was
sub
ject
to p
rior l
icen
ses
[OK
];
--G
rant
ee g
iven
righ
t to
sue,
but
gra
ntor
cou
ld s
ue if
gr
ante
e di
d no
t sue
[PR
OB
LEM
];
--G
rant
ee w
as o
blig
ated
not
to p
reju
dice
or i
mpa
ir pa
tent
righ
ts v
ia s
uit/s
ettle
men
t [P
RO
BLE
M];
--G
rant
or c
ould
par
ticip
ate
in s
uit b
y gr
ante
e
[CO
ULD
BE
PR
OB
LEM
]; an
d
--G
rant
ee c
ould
n't a
ssig
n, e
xcep
t to
succ
esso
r in
busi
ness
[PR
OB
LEM
].
(Res
ult:
Pur
porte
d as
sign
men
t rea
lly e
xclu
sive
lice
nse)
Abb
ott,
47 F
.3d
1128
(Fed
. Cir.
199
5)
1-127
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017
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entE
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up, L
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utho
rized
re
prod
uctio
n pr
ohib
ited.
14
iii.Fa
ctor
s co
urts
con
side
r:
--N
atur
e an
d sc
ope
of g
rant
or’s
v. g
rant
ee’s
righ
t to
sue
[ofte
n th
e m
ost i
mpo
rtant
fact
or]
--G
rant
ee’s
righ
t to
subl
icen
se
--R
ever
sion
of r
ight
s to
gra
ntor
upo
n br
each
--G
rant
or’s
righ
t to
porti
on o
f liti
gatio
n re
cove
ries
by
gran
tee
--D
urat
ion
of th
e gr
ant
--G
rant
or’s
abi
lity
to s
uper
vise
/con
trol g
rant
ee’s
ac
tiviti
es
--Li
mita
tions
on
gran
tee’
s ab
ility
to fu
rther
ass
ign
its
right
s
Man
n v.
Coc
hlea
r, __
_ F.
3d _
__ (F
ed. C
ir. 2
010)
1-128
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017
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entE
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up, L
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Una
utho
rized
re
prod
uctio
n pr
ohib
ited.
15
C.
Exc
lusi
ve L
icen
se
1.M
ust h
ave
bene
ficia
l ow
ners
hip
of ri
ght t
o pr
even
t ot
hers
from
mak
ing/
usin
g/se
lling
. O
rtho,
52
F.3d
102
6 (F
ed. C
ir. 1
995)
.
a.P
aten
tee'
s ex
pres
s or
impl
ied
prom
ise
that
othe
rs s
hall
be e
xclu
ded
from
exp
loita
tion
with
in th
e ex
clus
ive
area
. R
ite-H
ite, 5
6 F.
3d
1538
(Fed
. Cir.
199
5); W
ater
man
, 138
U.S
. 25
2 (1
890)
2.W
ill ha
ve s
tand
ing
to s
uere
gard
less
of s
tand
ing
to
sue
clau
se.
Orth
o, s
upra
.
b.D
rafti
ng ti
p: M
ake
licen
sor e
xplic
itly
prom
ise
not t
o lic
ense
3P
3.D
efin
e ex
clus
ivity
by
field
of u
se /
time
/ geo
grap
hy
1-129
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017
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entE
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up, L
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Una
utho
rized
re
prod
uctio
n pr
ohib
ited.
16
4.E
xclu
sive
eve
n as
to li
cens
or?
a.S
ilenc
e ca
n be
am
bigu
ous
(esp
ecia
lly o
vers
eas)
b.B
e ex
plic
it: “
w/ r
eser
v.” o
r “w
/o re
serv
.”
c.O
r bet
ter:
“… e
xclu
sive
(eve
n as
to li
cens
or) …
”
D.
Non
excl
usiv
e Li
cens
e
1.Fr
eedo
m fr
om s
uit
2.P
erso
nal t
o lic
ense
e (d
efau
lt=no
ntra
nsfe
rabl
e)
E.
Cov
enan
t Not
to S
ue
1.S
imila
r to
none
xclu
sive
lice
nse,
exc
ept
2.P
erso
nal f
rom
gra
ntor
(doe
s no
t run
with
IP
asse
t)
3.E
ncum
bran
ce o
n (r
uns
with
) IP
asse
t
1-130
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entE
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rized
re
prod
uctio
n pr
ohib
ited.
17
CO
MM
ON
MIS
TAK
E #
5 –
ENFO
RC
EMEN
T R
IGH
TS V
S. G
RA
NT
TYPE
I.TH
EY
’RE
NO
T A
RB
ITR
AR
Y O
R IN
DE
PE
ND
EN
T!
A.
Deg
ree
of “s
tand
ing
to s
ue” f
ollo
ws
gran
t typ
e
B.
Gen
eral
ly (u
sing
pat
ent l
aw p
rece
dent
)
1.O
nly
by:
a.P
aten
tee.
35
US
C 2
81.
b.S
ucce
ssor
s in
title
. 35
US
C 1
00(d
).
c.E
xclu
sive
lice
nsee
s. O
rtho,
52
F.3d
102
6 (F
ed. C
ir. 1
995)
.
1-131
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017
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entE
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uctio
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ited.
18
a.C
anno
t sue
for p
ast d
amag
es u
nles
s as
sign
or
also
exp
ress
ly c
onve
ys s
uch
right
. M
inco
, 95
F.3d
110
9 (F
ed. C
ir. 1
996)
.
i.“E
ntire
righ
t, tit
le &
inte
rest
” not
eno
ugh
b.N
unc
pro
tunc
(“now
for t
hen”
) agr
eem
ent m
ade
post
-sui
t, bu
t pur
porte
dly
effe
ctiv
e pr
e-su
it, is
in
effe
ctiv
e. G
AIA
, 93
F.3d
774
(Fed
. Cir.
199
6);
Abr
axis
Bio
scie
nce
v. N
avin
ta, 6
25 F
.3d
1359
(F
ed. C
ir. 2
010)
.
2.In
fring
emen
t sui
t = le
gal r
emed
y; p
lain
tiff m
ust h
old
lega
l titl
eat
tim
e of
infri
ngem
ent.
Ara
chni
d, 9
39 F
.2d
1574
(Fed
. Cir.
199
1).
c.D
rafti
ng ti
p: A
ssig
nee
shou
ld g
et “r
ight
to s
ue
for p
ast i
nfrin
gem
ents
(if a
ny)”
C.
Ass
igne
e (a
suc
cess
or in
title
)
1.C
an s
ue in
ow
n na
me
1-132
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rized
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ited.
19
D.
Exc
lusi
ve L
icen
see
1.S
tand
ing
to s
ue
a.C
anno
t div
est t
rue
excl
usiv
e lic
ense
e of
righ
t to
sue
2.S
uit i
n pa
tent
ee's
nam
e (w
ith p
aten
tee)
3.M
ust j
oin
the
pate
ntee
Orth
o, 5
2 F.
3d 1
026
(Fed
. Cir.
199
5); A
rach
nid,
939
F.2
d 15
74
(Fed
. Cir.
199
1).
4.Li
mite
d E
xcep
tion:
A p
aten
t hol
ding
com
pany
sub
sidi
ary
was
form
ed a
nd a
ssig
ned
pate
nts
by th
e (o
rigin
al) p
aten
tee,
th
en e
xclu
sive
ly li
cens
ed p
aten
ts b
ack
to th
e pa
rent
. D
urin
g lit
igat
ion
(e.g
., a
DJ
defe
nse)
by
the
excl
usiv
e lic
ense
e,th
e ho
ldin
g co
mpa
ny w
as n
ot in
disp
ensa
ble ,
and
nee
d no
t be
join
ed, s
ince
its
inte
rest
s w
ere
fully
repr
esen
ted
by it
s pa
rent
.
Dai
nipp
on v
. CFM
T, 1
42 F
.3d
1266
, 126
9 (F
ed. C
ir. 1
998)
1-133
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20
E.
Non
excl
usiv
e Li
cens
e
1.N
o st
andi
ng to
sue
a.D
rafti
ng ti
p : C
anno
t giv
e no
nexc
lusi
ve
licen
see
right
to s
ue
F.
Wat
ch fo
r Inc
onsi
sten
t Enf
orce
men
t Cla
uses
1.R
etai
ning
con
trol (
by a
ssig
nor)
2.In
hibi
ting
cont
rol (
by a
ssig
nee
or e
xclu
sive
lice
nsee
)
3.Im
prop
erly
gra
ntin
g co
ntro
l (to
non
excl
usiv
e lic
ense
)
4.C
ourt
will
rein
terp
ret g
rant
type
and
/or e
nfor
cem
ent
right
to b
e co
nsis
tent
with
eac
h ot
her!
1-134
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entE
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rized
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ited.
21
II.JO
IND
ER
ISS
UE
S
A.
Nor
mal
ly re
quire
d of
all
parti
es h
avin
g st
andi
ng to
sue
(e.g
., ow
ners
and
exc
lusi
ve li
cens
ees)
E.
Dra
fting
tip
for l
icen
see:
Get
ow
ner t
o ag
ree
to jo
in s
uit,
and
also
to ju
risdi
ctio
n
C.
Do
larg
e co
mpa
nies
real
ly p
refe
r to
be in
volu
ntar
ily jo
ined
?
F.D
rafti
ng ti
p fo
r lic
enso
r: G
et e
xclu
sive
lice
nsee
to a
gree
to
join
sui
t, an
d al
so to
juris
dict
ion
B.
Are
the
nece
ssar
y pa
rties
bou
nd b
y a
cont
ract
ual c
oven
ant
to jo
in (e
.g.,
volu
ntar
ily)?
D.
Is in
volu
ntar
y jo
inde
r alw
ays
feas
ible
?
1.O
n th
e on
e ha
nd, r
ecen
t cas
e la
w (d
icta
) say
s ex
clus
ive
licen
sors
sta
nd in
a p
ositi
on o
f tru
st to
th
eir e
xclu
sive
lice
nsee
s, a
nd c
anno
t ref
use
invo
lunt
ary
join
der.
STV
.UN
M v
. Int
el(F
ed. C
ir. 2
014)
2.E
ven
so, t
here
are
per
sona
l jx.
Issu
es:
Rul
e 19
v.
Inde
pend
ent W
irele
ss (1
928)
.
1-135
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22
CO
MM
ON
MIS
TAK
E #
6 –
CH
AN
GE
OF
CO
NTR
OL
I.P
LAN
FO
R M
ER
GE
RS
, AC
QU
ISIT
ION
S, E
TC.
A.
IP li
cens
es a
re b
y de
faul
t non
-tran
sfer
able
by th
e lic
ense
e
1.Fe
dera
l com
mon
law
2.C
ontra
st fr
ee a
liena
bilit
y of
non
-IP a
gree
men
ts
3.C
alifo
rnia
exc
eptio
n? S
uper
Bra
ce v
. Tid
wel
l, 20
04 W
L 26
6830
6 (C
al. A
pp.4
th20
04)
(pat
ent l
icen
se =
ass
igna
ble)
2.Fo
rwar
d S
ubsi
diar
y M
erge
r (ta
rget
into
acq
uiro
r sub
.) (a
ka F
orw
ard
Tria
ngul
ar M
erge
r)
3.A
sset
Sal
e
B.
Sile
nce
(or e
xpre
ss p
rohi
bitio
n on
tran
sfer
) will
bar t
rans
fer i
n si
tuat
ions
whe
re th
e or
igin
al li
cens
ee n
o lo
nger
hol
ds th
e co
ntra
ct
1.Fo
rwar
d M
erge
r (ta
rget
into
acq
uiro
r)
1-136
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entE
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rized
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uctio
n pr
ohib
ited.
23
C.
Pro
hibi
tion
on tr
ansf
er (o
r sile
nce)
will
gen
eral
ly n
ot tr
igge
r an
ti-tra
nsfe
r cla
use
whe
re o
rigin
al li
cens
ee s
till h
olds
the
cont
ract
2.R
ever
se S
ubsi
diar
y M
erge
r (ak
a R
TM)
1.S
tock
Sal
e
a.
Mes
oSca
le v
. Roc
he(D
el. C
h. F
eb. 2
2, 2
013)
(RTM
do
es n
ot tr
igge
r ant
i-”as
sign
men
t” cl
ause
; fol
low
-on
to th
e co
urt’s
201
1 de
cisi
on in
the
sam
e ca
se
deny
ing
MTD
to s
tudy
if R
TM w
as a
ssig
nmen
t by
ope
ratio
n of
law
)
b.(?
) Exc
ept,
poss
ibly,
in C
alifo
rnia
. S
QL
Sol
utio
ns,
1991
WL
6264
58 (N
.D. C
al. 1
991)
(unr
epor
ted
case
) (tra
nsfe
r of p
aten
t or c
opyr
ight
lice
nse,
to a
co
mpe
titor
of l
icen
sor)
[pro
babl
y ba
d la
w]
1-137
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entE
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up, L
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Una
utho
rized
repr
oduc
tion
proh
ibite
d.24
3.In
clud
e a
broa
d “d
eem
ed tr
ansf
er” c
laus
e (e
.g.,
any
oper
atio
n of
law
, mer
ger,
chan
ge o
f con
trol)
a.In
RTM
/sto
ck p
urch
ase,
targ
et c
ompa
ny w
ould
stil
l ho
ld a
gree
men
t any
way
(tra
nsfe
r or n
ot)
b.P
urpo
se is
to m
ake
acqu
isiti
on a
bre
ach,
giv
ing
non-
trans
ferr
ing
party
abi
lity
to te
rmin
ate
for b
reac
h
D.
Dra
fting
pro
hibi
tions
on
trans
fer
1.
“Lic
ense
e m
ay n
ot a
ssig
n an
y rig
ht o
r del
egat
e an
y ob
ligat
ion
unde
r, or
tran
sfer
in it
s en
tiret
y, th
is A
gree
men
t, to
any
3P
”
2.“a
nd a
ny s
uch
atte
mpt
ed a
ssig
nmen
t, de
lega
tion
or
trans
fer s
hall
be v
oid.
”
a.R
est.
2d C
ontra
cts
322(
2)(b
) –da
mag
es fo
r bre
ach,
bu
t ass
ignm
ent n
ot in
effe
ctiv
e
1-138
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entE
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ited.
25
II.B
AN
KR
UP
TCY
A.
BA
SIC
CO
NC
EP
TS:
Ipso
fact
ocl
ause
une
nfor
ceab
le b
ecau
se
trust
ee/D
IP c
an re
ject
/ass
ume
any
exec
utor
y co
ntra
ct.
11 U
.S.C
. 363
(1),
365(
e)(1
), 36
5(f)(
1), 3
65(f)
(3) &
541
(c)(
1)(B
).
1.R
ejec
t ==>
aba
ndon
lice
nse
(usu
ally
aga
inst
wis
h of
lic
ense
e) to
incr
ease
val
ue o
f lic
ense
d IP
ass
et p
rior t
o sa
le (u
sual
ly w
here
lice
nsor
ban
krup
t)
2.A
ssum
e==
> ke
ep o
r ass
ign
(to o
ther
than
lic
ense
e) (u
sual
ly w
here
lice
nsee
ban
krup
t)
3.M
ost I
P lic
ense
s ar
e ex
ecut
ory
a.Li
cens
ee o
blig
atio
n to
mak
e re
ports
b.Li
cens
ee o
blig
atio
n to
mar
k an
d no
t to
sue
Lubr
izol
, 756
F.2
d 10
43 (4
thC
ir. 1
985)
; cer
t. de
nied
, 475
U.S
. 105
7 (1
986)
.
1-139
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rized
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uctio
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ited.
26
B.
EX
CE
PTI
ON
PR
OTE
CTI
NG
PAT
EN
T LI
CE
NS
OR
:
Trus
tee/
DIP
may
not
ass
ume
or [a
nd?]
ass
ign
whe
n no
n-ba
nkru
ptcy
law
exc
uses
acc
eptin
g an
othe
r's p
erfo
rman
ce. 1
1 U
SC
365
(c)
1.or
–“h
ypot
hetic
al te
st” –
3rd,
4th
, 5th
, 9th
, 11t
h ci
rcui
ts2.
and
–“a
ctua
l tes
t” –
1st c
ircui
t
3.Fe
dera
l IP
licen
ses
are
pers
onal
and
lice
nsor
nee
d no
t ac
cept
per
form
ance
from
oth
er th
an o
rigin
al li
cens
ee
(e.g
., fu
lly p
aid
up b
lank
et li
cens
e)
4.U
nles
s pa
rties
cle
arly
inte
nded
to a
llow
ass
ignm
ent
a.Li
cens
or s
houl
d dr
aft t
o em
phas
ize
pers
onal
b.Li
cens
ee s
houl
d dr
aft a
s as
sign
able
C.
EX
CE
PTI
ON
PR
OTE
CTI
NG
PAT
EN
T LI
CE
NS
EE
: If
trust
ee/D
IP re
ject
s, li
cens
ee h
as c
hoic
e of
:1.
Trea
ting
licen
se a
s te
rmin
ated
& s
eeki
ng re
med
y fo
r bre
ach;
or
2.E
lect
ing
to re
tain
righ
ts (I
P on
ly),
but m
ust c
ontin
ue to
pay
ro
yalti
es11
US
C 3
65(n
)
1-140
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27
CO
MM
ON
MIS
TAK
E #
7 –
REP
RES
ENTA
TIO
NS,
WA
RR
AN
TIES
& IN
DEM
NIF
ICAT
ION
I.R
ISK
ALL
OC
ATIO
N M
EC
HA
NIS
M
A.
Bre
ach
of c
ontra
ct
1.R
epai
r
5.R
efun
d &
term
inat
e
3.M
odify
4.G
et li
cens
e
B.
Rem
edie
s
2.R
epla
ce
6.Li
quid
ated
dam
ages
(but
not
pen
alty
)
1-141
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28
II.R
EP
S A
ND
WA
RR
AN
TIE
S
A.
[Tec
h. L
ic.]
Con
form
with
spe
cs (b
ewar
e co
mpu
ter a
nd fo
reig
n)
B.
[Tec
h./P
at. L
ic.]
Non
infri
ngem
ent (
pate
nts
–no
way
to k
now
)
C.
[Sal
e/P
at. L
ic.]
Valid
ity (p
aten
ts –
no w
ay to
kno
w)
1.S
uffic
ienc
y (n
onin
fring
emen
t in
disg
uise
)
D.
[Sal
e/E
xcl.
Pat
. Lic
.] N
o en
cum
bran
ces
(lice
nses
, sec
urity
inte
rest
s)
E.
[Sal
e/E
xcl.
Pat
. Lic
.] Ti
mel
y pr
osec
utio
n (a
band
onm
ent)
1-142
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entE
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uctio
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ited.
29
III.
Inde
mni
ficat
ion
A.
Som
etim
es ti
ed to
bre
ach
of R
&W
(2-s
tep)
B.
Ofte
n in
depe
nden
t pro
visi
ons
(1-s
tep)
1.N
ot a
bas
is fo
r exi
ting
the
agre
emen
t
IV.
Exc
lusi
ons
whe
re w
ould
not
hav
e oc
curr
ed b
ut fo
r:
A.
Use
out
side
sco
pe o
f lic
ense
B.
Mod
ifica
tion
of te
chno
logy
by
licen
see
C.
Com
bina
tion
with
sub
ject
mat
ter n
ot p
rovi
ded
by
licen
sor
D.
Use
with
sub
ject
mat
ter n
ot a
ppro
ved
by li
cens
or
E.
Use
of o
ther
then
late
st v
ersi
on (i
f ava
il.)
1-143
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ited.
30
F.C
onsi
der e
xclu
ding
cer
tain
use
s
1.N
ucle
ar, a
ircra
ft (~
stri
ct li
abili
ty)
2.S
ervi
ce b
urea
u, o
utso
urci
ng (m
ultip
lier
effe
ct)
V.N
onin
fring
emen
t of 3
P IP
A.
Spe
cify
the
Ope
rativ
e D
ate
1.G
rant
or -
“as
of e
ffect
ive
date
”
2.G
rant
ee -
“doe
s no
t and
will
not”
B.
Be
war
y of
R&
W o
f pat
ent n
onin
fring
emen
t or
inde
mni
ficat
ion
agai
nst p
aten
t inf
ringe
men
t
1.P
aten
t = ri
ght t
o ex
clud
e, n
ot to
pra
ctic
e
2.N
ever
kno
w w
hat p
aten
ts a
re o
ut th
ere
1-144
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31
3.G
rant
or -
Avoi
d gi
ving
a.G
et c
ap
b.Li
mit
via
know
ledg
e
i.R
eq'd
for p
aten
ts o
nly
ii.La
ck o
f lim
itatio
n us
ually
not
a
prob
lem
re T
S &
© b
ecau
se
inde
pend
ent d
evel
opm
ent i
s a
com
plet
e de
fens
e
1-145
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32
II.E
STO
PP
EL
A.
Equ
itabl
e E
stop
pel
1.M
isle
adin
g co
nduc
tby
plai
ntiff
2.R
elia
nce
by d
efen
dant
3.M
ater
ial p
reju
dice
to d
efen
dant
Auk
erm
an, 9
60 F
.2d
1020
(Fed
. Cir.
199
2) (e
n ba
nc)
4.C
an h
appe
n in
ver
y sh
ort t
ime.
Asp
ex v
. Cla
riti,
605
F.3d
130
5(F
ed. C
ir. 2
010)
(agg
ress
ive
notic
e le
tters
follo
wed
by
3-ye
ar
sile
nce)
B.
Lega
l Est
oppe
l1.
Lice
nsor
gra
nts
licen
se; a
nd2.
Late
r trie
s to
inte
rfere
(e.g
., by
ass
ertin
g af
ter-
acqu
ired
pate
nt)
Spi
ndel
fabr
ik, 8
29 F
.2d
1075
(Fed
. Cir.
198
7),
Tran
scor
e v.
Ele
ctr.
Tran
s. C
ons.
,563
F.3
d 12
71 (F
ed. C
ir. 2
009)
(e
ven
with
sho
rt fo
rm d
iscl
aim
er o
f rig
hts
not e
xpre
ssly
gra
nted
)
CO
MM
ON
MIS
TAK
E #
8 –
UN
INTE
ND
ED G
RA
NTS
OR
CO
NSE
QU
ENC
ES
I.IM
PLI
ED
LIC
EN
SE
S
1-146
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33
III.
IN R
EC
EN
T Y
EA
RS
, CO
UR
TS H
AVE
RE
PE
ATE
DLY
FO
UN
D N
EW
R
IGH
TS F
OR
LIC
EN
SE
ES
BE
YO
ND
TH
OS
E E
XP
RE
SS
LY G
RA
NTE
D
A.
Con
tinua
tion
Pat
ents
1.S
ubje
ct to
lega
l est
oppe
l, an
d al
so im
plie
dly
licen
sed,
ab
sent
a c
lear
inte
nt to
the
cont
rary
. G
ener
al P
rote
cht v
. Lev
iton,
___
F.3
d __
_ (F
ed. C
ir. 2
011)
B.
Rei
ssue
Pat
ents
1.“L
icen
sed
Pat
ents
” = A
ll pa
tent
s w
hich
lice
nsor
ow
ns, c
ontro
ls
or h
as ri
ght t
o lic
ense
on
effe
ctiv
e da
te o
r dur
ing
term
2.D
id n
ot m
entio
n re
issu
es o
f the
fore
goin
g3.
Rei
ssue
s is
sued
afte
r agr
eem
ent e
xpire
d w
ere
not i
nclu
ded
in
gran
t, bu
t “sh
ould
be
treat
ed” a
s su
ch b
ecau
se o
f par
ties’
“in
tent
”a.
Inte
nt w
as in
ferr
ed fr
om n
othi
ng m
ore
than
exi
sten
ce
of th
e pa
tent
reis
sue
stat
ute!
4.C
omm
ent :
How
can
par
ties’
inte
nt b
e sh
own
by s
tatu
te?
Inte
l v. N
egot
iate
d D
ata
Sol
utio
ns, 7
03 F
.3d
1360
(Fed
. Cir.
201
2)
1-147
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34
C.
Hav
e M
ade
Rig
ht
1.G
rant
to m
ake,
use
and
sel
l inh
eren
tly in
clud
es ri
ght t
o
“hav
e m
ade”
2.A
cont
ract
ual d
iscl
aim
er o
f rig
hts
not e
xpre
ssly
gra
nted
do
es n
ot n
egat
e th
e ha
ve m
ade
right
with
out c
lear
/spe
cific
ev
iden
ce o
f an
inte
nt to
neg
ate
Cor
ebra
ce v
. Sta
r Sei
smic
, 566
F.3
d 10
69 (F
ed. C
ir. 2
009)
D.
Wip
ing
Out
“No
Cha
lleng
e” O
blig
atio
ns A
fter M
&A
1.P
arty
gav
e “n
o ch
alle
nge”
cov
enan
t as
part
of li
tigat
ion
settl
emen
t
2.Th
e co
vena
ntor
was
late
r acq
uire
d
3.Th
e co
vena
nt d
oes
not a
pply
to th
e pa
rt of
the
acqu
iror’s
bu
sine
ss n
ot a
risin
g fro
m th
e ac
quire
d co
mpa
ny, e
ven
whe
n th
e ac
quiro
r gen
eral
ly a
gree
d to
acc
ept a
ll of
the
oblig
atio
ns o
f the
acq
uire
d co
mpa
ny
4.C
omm
ent :
Thi
s ef
fect
ivel
y w
iped
out
the
cove
nant
Epi
star
v. I
TC a
nd P
hilip
s Lu
mile
ds, 5
66 F
.3d
1321
(Fed
. Cir.
200
9)
1-148
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35
E.
Gra
nts
to U
nint
ende
d S
ubsi
diar
ies
1.Fa
cts:
“S
ubsi
diar
y” w
as d
efin
ed a
s in
clud
ing
any
entit
y th
at
the
licen
see
“now
or h
erea
fter”
con
trolle
d. T
he a
gree
men
t ha
d a
fixed
exp
iratio
n da
te, b
ut th
e pa
tent
lice
nses
sur
vive
d fo
r the
life
of t
he p
aten
t.
2.H
eld :
Sub
sidi
arie
s of
the
licen
see,
acq
uire
d af
ter t
he
expi
ratio
n da
te, w
ere
also
lice
nsed
.
Imat
ion
v. P
hilip
s, 5
86 F
.3d
980
(Fed
. Cir.
200
9)
F.Th
e re
cent
tren
dat
the
cour
ts is
cle
arly
ant
i-pat
ente
e(p
ro-li
cens
ee)
1.B
ut s
ee E
ndo
v. A
ctav
is(F
ed. C
ir. 2
014)
a.P
aten
tee
asse
rted
late
r (no
n-co
ntin
uatio
n) p
aten
ts
agai
nst a
lice
nsee
of t
he o
rigin
al p
aten
ts
b.A
gree
men
t had
a s
hort
form
dis
clai
mer
c.Fe
d. C
ir .:
“You
get
wha
t you
bar
gain
for.
And
we
will
not u
se th
e im
plie
d lic
ense
doc
trine
to in
sert
ours
elve
s in
to th
at b
arga
in a
nd re
writ
e th
e co
ntac
t”
d.C
omm
ent :
Thi
s ca
se b
ucks
the
rece
nt tr
end.
Is
the
mom
entu
m s
low
ing?
1-149
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36
IV.
PATE
NT
EX
HA
US
TIO
N /
FIR
ST
SA
LE D
OC
TRIN
E
A.
Aut
horiz
ed (u
ncon
ditio
nal)
sale
of p
rodu
ct m
ade
unde
r pa
tent
lice
nse
exha
usts
the
pate
nt ri
ghts
aga
inst
do
wns
tream
use
rs
C.
If pr
oduc
t mad
e/so
ld u
nder
lice
nse
to p
aten
t A a
lso
“sub
stan
tially
em
bodi
es” p
aten
t B, t
hen
B e
xhau
sted
too
1.“s
ubst
antia
lly e
mbo
dies
” = p
ract
icin
g “e
ssen
tial
feat
ures
” of a
cla
im?
LG E
lect
roni
cs v
. Qua
nta,
553
U.S
. 617
(200
8)
B.
App
lies
to b
oth
devi
ce a
nd m
etho
d cl
aim
s
D.
Man
y op
en is
sues
rem
aine
d af
ter Q
uant
a
E.
Som
e ne
w la
w a
fter Q
uant
a1.
Unr
estri
cted
cov
enan
t not
to s
ue a
lso
exha
usts
.Tr
ansc
ore
v. E
lect
r. Tr
ans.
Con
s., 5
63 F
.3d
1271
(Fed
. Cir.
200
9)
1-150
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2.E
xhau
stio
n =
defe
nse,
but
not
bas
is fo
r DJ.
Exc
elS
tor v
. Pap
st(F
ed. C
ir. 2
008)
3.Li
cens
ee’s
failu
re to
pay
roya
lties
doe
s no
t ret
roac
tivel
y co
nver
t an
auth
oriz
ed s
ale
into
an
unau
thor
ized
one
a.E
ven
whe
re th
e lic
ense
was
“sub
ject
to th
e te
rms
and
cond
ition
s” o
f the
con
tract
, and
an
othe
r pro
visi
on d
eem
ed to
be
unlic
ense
dpr
oduc
ts fo
r whi
ch ro
yalti
es w
ere
not p
aid.
Tess
era
v. IT
C, _
__ F
.3d
___
(Fed
. Cir.
201
1)b.
But
see
Jac
obse
n v.
Kat
zer,
535
F.3d
137
3(F
ed. C
ir. 2
008)
(ope
n so
urce
© li
cens
e co
ntin
gent
upo
n te
rms
and
cond
ition
s; b
reac
h le
d to
loss
of l
icen
se, a
nd ©
infri
ngem
ent s
uit)
1-151
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rized
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uctio
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38
4.P
aten
tee’
s sa
le o
f mac
hine
“sub
stan
tially
em
body
ing”
a m
etho
d cl
aim
exh
aust
sth
e pa
tent
ee’s
righ
ts a
gain
st u
naut
horiz
ed s
ales
of
(unp
aten
ted)
cop
ycat
con
sum
able
sus
ed in
the
mac
hine
/met
hod.
a.K
eurig
v. S
turm
, ___
F.3
d __
_ (F
ed. C
ir. 2
013)
i.
Met
hod
clai
m c
over
ed b
rew
ing
coffe
e by
po
king
inle
t/out
let h
oles
in a
cof
fee
cartr
idge
, ad
ding
wat
er, a
nd e
xtra
ctin
g co
ffee.
ii.
Hol
ding
: P
aten
tee’
s m
achi
ne s
ales
(cov
ered
by
devi
ce c
laim
s) e
xhau
sted
righ
ts v
. car
tridg
e se
llers
iii
.Fe
d. C
ir. c
hara
cter
ized
/dis
tingu
ishe
d Q
uant
aas
ap
plic
able
to e
xhau
stio
n by
sal
es o
f unp
aten
ted
com
pone
nts
(diff
eren
t sce
nario
)iv.
A co
nditi
onal
sal
ere
stric
ting
the
brew
er
purc
hase
r’s u
se c
ould
hav
e av
oide
d ex
haus
tion
v.
Pat
ent e
xhau
stio
n ap
plie
s to
pat
ents
in th
eir
entir
ety,
not
cla
im-b
y-cl
aim
1-152
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b.Li
fesc
an v
. Sha
sta,
___
F.3
d __
_ (F
ed. C
ir. 2
013)
i.
Met
hod
clai
m c
over
ed im
prov
ed g
luco
se te
stin
g us
ing
a m
eter
com
parin
g bl
ood
mea
sure
men
ts
over
two
sens
ors
on a
dis
posa
ble
test
stri
p, a
nd
indi
catin
g an
err
or if
diff
eren
ce >
thre
shol
dii.
Fed.
Cir.
sta
ted
that
a s
old
prod
uct “
subs
tant
ially
embo
dies
” the
pat
ent i
f add
ition
al s
teps
need
ed to
co
mpl
ete
the
inve
ntio
n ar
e “ n
on-in
vent
ive”
aa.
Her
e, s
trip
clai
ms
had
been
reje
cted
due
to
prio
r art,
plu
s th
e sp
ec. &
pro
s. h
isto
ryem
phas
ized
inve
ntiv
enes
s of
the
met
erbb
.“[I
]f a
pate
nt h
ad a
ctua
lly is
sued
on
the
strip
s, th
e pa
tent
abilit
y of
the
strip
s co
uld
be re
leva
nt to
exh
aust
ion.
”iii
.H
oldi
ng:
If on
e ite
min
a p
aten
ted
com
bina
tion
is u
npat
ente
dan
d th
e in
vent
ive
conc
ept r
esid
es in
a
seco
nd it
em, t
hen
sellin
g th
e se
cond
item
exha
usts
a pa
tent
on
the
com
bina
tion.
1-153
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uctio
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ited.
40
iv.M
eter
s gi
ven
away
for f
ree
(or b
elow
cos
t) al
so
caus
e ex
haus
tion
aa.
Bec
ause
of t
he “a
utho
rized
and
un
cond
ition
al tr
ansf
er o
f titl
e ”bb
.A
labe
l not
ice
was
not
eno
ugh
to m
ake
the
sale
con
ditio
nal.
The
re s
houl
d be
an
“exp
ress
con
tract
ual u
nder
taki
ng.”
Citi
ng
Jazz
, 264
F.3
d 10
94 (F
ed. C
ir. 2
001)
cc.
“To
be s
ure,
the
amou
nt o
f com
pens
atio
nre
ceiv
ed b
y th
e pa
tent
ee m
ayin
som
e in
stan
ces
be re
leva
ntto
… w
heth
era
…
trans
actio
n is
… a
n un
cond
ition
al tr
ansf
eror
sal
e as
opp
osed
to a
con
ditio
nal s
ale
or li
cens
e.”
Citi
ng P
rinco
, 616
F.3
d 13
18,
1328
(Fed
. Cir.
201
0) (e
n ba
nc)
dd.
A pa
tent
ee’s
“tra
nsfe
r of t
he ri
ght t
o us
eth
e m
achi
nes
‘exh
aust
ed h
is ri
ghts
as
to
thos
e m
achi
nes’
” C
iting
Uni
vis,
316
U.S
. 24
1, 2
50 (1
942)
.
1-154
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rized
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uctio
n pr
ohib
ited.
41
vi.
Wha
t abo
ut c
ontri
buto
ry in
fring
emen
tby
the
strip
se
ller?
aa.
“The
par
ties
have
not
arg
ued,
and
th
eref
ore
we
do n
ot d
ecid
e, w
heth
er th
ere
wou
ld b
e an
y im
pact
on
exha
ustio
n pr
inci
ples
if a
stri
p w
ere
‘esp
ecia
lly m
ade
or e
spec
ially
ada
pted
for u
se in
an
infri
ngem
ent o
f suc
h pa
tent
, and
not
a
stap
le a
rticl
e or
com
mod
ity o
f com
mer
ce
suita
ble
for s
ubst
antia
l ‘no
ninf
ringi
ng u
se’
with
in th
e m
eani
ng o
f 35
US
C 2
71(c
).”
5.“C
ondi
tiona
l sal
es” c
an b
e im
plem
ente
d by
pos
t-sal
e re
stric
tions
on
the
right
s gr
ante
d to
the
licen
see.
Lex
mar
k v.
Impr
essi
on P
rods
., __
_ F.
3d _
__ (2
016)
(en
banc
); ce
rt. g
rant
ed
1-155
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rized
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uctio
n pr
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ited.
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F.P
ract
ice
Tips
–Av
oidi
ng E
xhau
stio
n1.
Use
a c
ondi
tiona
l sal
e st
ruct
ure
2.Li
cens
e, d
on’t
sell
3.If
licen
se to
mak
e/se
ll, re
quire
lice
nsee
’s c
usto
mer
be
lice
nsed
(els
e un
auth
oriz
ed s
ale)
4.Vo
id li
cens
e ab
initi
oif
exha
ustio
n is
foun
d5.
Sta
te “n
o ex
haus
tion”
= e
ssen
tial t
erm
of l
icen
se
criti
cal t
o m
eetin
g of
min
ds; b
asis
for r
esci
ssio
n if
not t
rue
6.G
rant
sta
ndst
ill in
stea
d of
lice
nse
or C
NTS
V.LA
CH
ES
A.
Pat
ente
e de
lays
filin
g su
it fo
r an
unre
ason
able
and
inex
cusa
ble
leng
th o
f tim
e af
ter i
t kne
w (o
r sho
uld
have
kno
wn)
of i
ts c
laim
ag
ains
t the
infri
nger
; and
B
.Th
e de
lay
prej
udic
esth
e in
fring
er1.
>6 y
ear d
elay
pre
sum
ed to
be
prej
udic
ial.
2.B
urde
n sh
ifts
to p
aten
tee
to s
how
del
ay w
as
reas
onab
le, o
r the
re w
as n
o pr
ejud
ice
1-156
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43
3.P
reju
dice
can
be
eith
er e
cono
mic
or e
vide
ntia
ry.
a.E
vide
ntia
ry P
reju
dice
:Lo
ss o
f rec
ords
, ev
iden
ce, e
tc. t
hat p
reve
nts
the
infri
nger
from
pro
ving
ano
ther
def
ense
sep
arat
efro
m la
ches
b.E
cono
mic
Pre
judi
ce:
Req
uire
s at
leas
t so
me
incr
ease
d ex
pend
iture
s in
relia
nce
on th
e de
lay
i.O
win
g da
mag
es fo
r a lo
nger
perio
dbe
caus
e of
the
dela
y is
not
econ
omic
pre
judi
ce
Hea
ring
Com
pone
nts
v. S
hure
, 600
F.3
d 13
57 (F
ed. C
ir. 2
010)
1-157
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017
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entE
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ited.
44
VI.
GR
AN
TS T
O S
UB
SID
IAR
Y TH
RO
UG
H P
AR
EN
T
A.
Abs
ent a
pie
rcin
g of
the
corp
orat
e ve
il, a
par
ent c
ompa
ny is
not
lia
ble
for t
he a
cts
of it
s su
bsid
iary
B.
If lic
ense
agr
eem
ent w
ith p
aren
t als
o in
clud
es s
ubsi
diar
y, p
aren
t is
not l
iabl
e if
subs
idia
ry b
reac
hes
C.
Pra
ctic
e Ti
p : E
xpre
ssly
requ
ire th
e pa
rent
to b
e re
spon
sibl
e fo
r br
each
by
the
subs
idia
ry
Dow
Jon
es v
. Abl
aise
, 606
F.3
d 13
38 (F
ed. C
ir. 2
010)
VII.
GR
AN
TS L
IMIT
ED
TO
EX
ISTI
NG
SU
BJE
CT
MAT
TER
ON
LY?
A.
Lice
nsed
pat
ents
= th
ose
whi
ch li
cens
or “o
wns
or c
ontro
ls”
1.U
se o
f pre
sent
tens
e m
eans
as
of e
ffect
ive
date
und
er N
Y la
w
Wi-L
AN
v. E
ricss
on(F
ed. C
ir. 2
014)
B.
Affi
liate
s =
only
thos
e as
of e
ffect
ive
date
, abs
ent a
n in
tent
to b
ind
futu
re a
ffilia
tes
Elli
ngto
n v.
EM
I Mus
ic(N
.Y. 2
015)
1-158
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017
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entE
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45
1.N
otifi
catio
n of
sub
licen
se g
rant
s
2.In
form
sub
licen
sees
to re
nder
obl
igat
ions
, $
to li
cens
or
3.Th
ink
abou
t iss
ues
like
perp
etua
l gra
nts,
au
to-r
enew
als,
etc
. in
licen
see’
s gr
ants
to it
s su
blic
ense
es
D.
Dra
fting
tips
for l
icen
sor:
VIII
.S
UB
LIC
EN
SE
A.
No
broa
der t
han
licen
see'
s (s
ublic
enso
r's) r
ight
s
B.
Term
inat
es u
pon
expi
ratio
n of
lice
nse,
unl
ess
stat
ed
othe
rwis
e
C.
Dra
fting
tip
for l
icen
see:
Pla
n fo
r sur
viva
l of e
nd u
ser
subl
icen
ses,
if n
eces
sary
1-159
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entE
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uctio
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46
CO
MM
ON
MIS
TAK
E #
9 –
RO
YALT
Y PR
OVI
SIO
NS
I.R
OYA
LTY
BA
SE
A.
If sa
les
to d
istri
buto
rs o
r via
sub
licen
sors
-us
e fix
ed p
er u
nit
roya
lty ra
ther
than
%
B.
Gro
ss s
ellin
g pr
ice
easi
er to
det
erm
ine
than
“net
” qua
ntiti
es
1.D
oes
licen
see
wan
t to
open
its
book
s?
E.
Wat
ch o
ut fo
r non
-sal
e tra
nsfe
rs o
f goo
ds(e
.g.,
paym
ent i
n ki
nd)
C.
Wat
ch o
ut fo
r con
voye
d or
pac
kage
sal
es
1.R
oyal
ty a
s %
of t
otal
pric
e
2.P
ro ra
ta a
lloca
tion
base
d on
resp
ectiv
e lis
t pric
es
3.R
oyal
ty a
s fix
ed $
per
uni
t
F.W
atch
out
for r
elat
ed c
ompa
ny s
ales
D.
Wat
ch o
ut fo
r “fre
ebie
s” a
nd “l
oss
lead
ers”
1-160
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017
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entE
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uctio
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ited.
47
G.
Eco
nom
ic c
onve
nien
ce o
r mis
use?
1.Li
cens
e ag
reem
ents
com
mon
ly h
ave
roya
lty b
ase
incl
udin
g pr
oduc
tsof
a s
peci
fied
type
, whe
ther
or n
otth
ey a
re
actu
ally
cov
ered
by th
e pa
tent
s
a.A
typi
cal “
econ
omic
con
veni
ence
” arr
ange
men
t.
b.Av
oids
the
diffi
culty
(im
prac
ticab
ility
) of “
clai
ms
char
ting”
eve
ry p
rodu
ct, o
ver i
ts g
eogr
aphi
c an
d te
mpo
ral l
ifecy
cle
(man
ufac
ture
di
strib
utio
n us
e)
c.D
J: T
he li
cens
ee m
ight
arg
ueit
wou
ld b
e m
isus
eto
pay
on
non-
cove
red
prod
ucts
, thu
s, in
ord
er to
be
val
id, t
he li
cens
e sh
ould
be
cons
trued
to
requ
ire p
aym
ent o
nly
on c
over
ed p
rodu
cts .
d.P
ract
ice
Tip :
Sta
te “e
cono
mic
con
veni
ence
” and
“n
o m
isus
e”
Pow
erte
ch v
. Tes
sera
(Fed
. Cir.
Sep
t 30,
201
1)
1-161
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48
II.M
OS
T FA
VO
RE
D L
ICE
NS
EE
CLA
US
E
A.
If ov
erbr
oad
(“mor
e fa
vora
ble
term
s”),
caus
es tr
oubl
e
B.
Car
eful
ly d
efin
e ba
sis
for c
ompa
rison
C.
Lim
itatio
ns
1.S
ame
terr
itory
/fiel
d/te
chno
logy
3.Li
cens
es w
ith s
ubst
antia
lly s
imila
r ter
ms
a.Ta
ke a
ll te
rms
or n
one
b.B
ewar
e “m
utat
is m
utan
dis”
cla
uses
4.N
otifi
catio
n an
d ac
cept
ance
tim
e fra
mes
2.P
rosp
ectiv
e (fu
ture
) lic
ense
s on
ly
1-162
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017
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entE
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rized
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uctio
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ited.
49
D.
Exc
lude
(if g
rant
or)
1.C
ompa
nies
in w
hich
gra
ntor
has
inte
rest
/affi
liatio
n
4.O
ptio
ns
5.C
ross
-lice
nses
E.
Bew
are
of c
onfid
entia
lity
clau
se c
onfli
cts
F.S
peci
fy w
ho d
ecid
es “m
ore
favo
rabl
e”
2.S
ettle
men
ts o
f pas
t inf
ringe
men
ts (f
orbe
aran
ce,
rele
ase,
etc
.)
3.C
ompu
lsor
y lic
ense
s
1-163
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entE
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ited.
50
III.
RE
CO
RD
KE
EP
ING
, RE
PO
RTI
NG
, AU
DIT
S
A.
Req
uire
lice
nsee
repo
rts
1.Q
ty. m
anuf
actu
red
C.
“Thr
ee S
trike
s R
ule”
B.
Rep
orts
sho
uld
be c
ertif
ied
(“to
bes
t of l
icen
see’
s kn
owle
dge”
)
2.Q
ty. s
old
3.R
etur
ns
4.S
ampl
es
5.R
elat
ed c
ompa
ny s
ales
IV.
DO
N’T
FO
RG
ET
CO
MP
OU
ND
INTE
RE
ST
ON
LAT
E/M
ISS
ING
PA
YM
EN
TS
1-164
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017
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entE
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ited.
51
CO
MM
ON
MIS
TAK
E #
10 –
NEG
OTI
ATIO
NS
I.C
OU
NS
EL
A.
Cor
pora
te v
. IP
v. p
aten
t lic
ensi
ng e
xper
t B
.G
et in
volv
ed e
arly
(at t
erm
she
et s
tage
)
II.TE
RM
SH
EE
T S
TAG
EA
.R
esol
ve a
ll m
ajor
issu
es a
t ter
m s
heet
sta
geB
.D
on’t
star
t dra
fting
too
early
III.
NE
GO
TIAT
ION
STA
GE
A.
Neg
otia
te is
sues
col
lect
ivel
yB
.Av
oid
pric
e “lo
ck in
”
IV.
BE
CA
RE
FUL
WIT
H “C
AR
RO
T A
ND
STI
CK
” LIC
EN
SIN
GA
.D
ecla
rato
ry ju
dgm
ent m
otio
nsB
.E
stop
pel a
nd la
ches
V.PA
Y AT
TEN
TIO
N T
O C
ALI
FOR
NIA
LAW
A.
Non
-com
pete
s in
valid
(Bus
. & P
rof.
Cod
e 16
600)
B.
Ass
ignm
ent v
ia R
TM (S
QL
Sol
utio
ns)?
C.
Free
tran
sfer
abili
ty o
f inb
ound
pat
ent l
icen
ses
(Sup
erB
race
)?
1-165
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entE
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52
Joe
Yang
is fo
undi
ng p
artn
er a
t Pat
entE
sque
Law
Gro
up, L
LP, a
nd p
revi
ousl
y se
rved
as
VP
& G
ener
al
Cou
nsel
of C
rypt
ogra
phy
Res
earc
h, In
c., w
hose
pat
ent a
nd te
chno
logy
lice
nsee
s m
ake
over
8 b
illio
n se
curit
y ch
ips
wor
ldw
ide
each
yea
r.
Joe
spec
ializ
es in
han
dlin
g IP
-cen
tric
deal
s (p
aten
t lic
ensi
ng/s
ales
, tec
h tra
nsac
tions
, JV
s an
d IP
as
pect
s of
M&
A),
and
in th
e us
e of
pat
ents
as
stra
tegi
c bu
sine
ss a
sset
s. H
e ha
s be
en le
ad c
ouns
el
on h
undr
eds
of d
eals
invo
lvin
g bi
llion
s of
dol
lars
, acr
oss
the
com
pute
r, el
ectro
nics
, sem
icon
duct
or,
ente
rtain
men
t, co
nsum
er g
oods
, man
ufac
turin
g, e
nerg
y an
d he
alth
care
indu
strie
s. J
oe h
as a
lso
been
an
arb
itrat
or, o
vers
een
com
plex
pat
ent l
itiga
tion,
led
the
deve
lopm
ent o
f wor
ldw
ide
corp
orat
e pa
tent
po
rtfol
ios,
and
ser
ved
as a
n ex
pert
witn
ess
for p
aten
t/tec
hnol
ogy
licen
sing
rela
ted
litig
atio
n.
Joe
is p
rofil
ed a
s on
e of
the
“Wor
ld’s
Lea
ding
IP S
trate
gist
s” a
nd “W
orld
’s L
eadi
ng P
aten
t and
Li
cens
ing
Atto
rney
s” b
y In
telle
ctua
l Ass
et M
anag
emen
t mag
azin
e. H
e is
als
o lis
ted
in M
arqu
is “W
ho’s
W
ho in
Am
eric
an L
aw” &
“Who
’s W
ho in
Am
eric
a.” J
oe c
o-ch
airs
the
“Adv
ance
d Li
cens
ing”
and
“A
dvan
ced
Pat
ent L
icen
sing
” cou
rses
at t
he P
ract
isin
g La
w In
stitu
te, a
nd h
as w
ritte
n fo
r jou
rnal
s an
d bo
oks,
and
bee
n ci
ted
by c
ourts
and
trea
tises
, on
pate
nt a
nd li
cens
ing
law.
He
is te
achi
ng th
e P
aten
t an
d Te
chno
logy
Lic
ensi
ng” c
ours
e at
Sta
nfor
d La
w S
choo
l, an
d pr
evio
usly
co-
taug
ht th
e “P
aten
t Law
an
d P
olic
y” c
ours
e at
U.C
. Ber
kele
y S
choo
l of L
aw.
Joe
form
erly
led
the
IP S
trate
gy &
Tra
nsac
tions
pra
ctic
e ba
sed
in th
e S
ilico
n Va
lley
offic
e of
Ska
dden
, A
rps
--a
prac
tice
he c
o-fo
unde
d w
hen
he h
elpe
d la
unch
the
firm
’s P
alo
Alto
offi
ce in
199
8.
Ear
ly in
his
car
eer,
Joe
was
a re
sear
ch e
ngin
eer i
n th
e ae
rosp
ace
and
ener
gy in
dust
ries.
He
hold
s a
J.D
. fro
m S
tanf
ord
and
a P
h.D
. (in
eng
inee
ring)
from
the
Cal
iforn
ia In
stitu
te o
f Tec
hnol
ogy,
whe
re h
e ha
s se
rved
on
the
boar
ds o
f the
Alu
mni
Ass
ocia
tion,
and
the
Cal
tech
Ass
ocia
tes.
He
can
be re
ache
d at
joe@
pate
ntes
que.
com
or 6
50-2
33-0
822.
SPEA
KER
BIO
GR
APH
Y –
JOSE
PH Y
AN
G
1-166
© Practising Law Institute
NOTES
1-167
© Practising Law Institute
NOTES
1-168