Perspective
Jun. 4, 2009
Ruling Puts Renewed Emphasis on Foresight in Drafting Licenses
When it comes to drafting a patent license, what goes unsaid is just as important as what is said, write Morgan Fong, Robin Schulman and Jason Soo.
Traditionally, a covenant not to sue was viewed as a narrower provision than a patent license because the former did not extend to cover the licensee's customers. But according to a recent ruling by the U.S. Court of Appeals for the Federal Circuit in TransCore LP v. Electronic Transaction Consultants Corp., 563 F.3d 1271 (Fed. Cir. 2009), an unconditional covenant not to sue is tantamount to a pat...
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