Patent licenses can mark the beginning of a fruitful relationship for both the patent owner and the licensee, but patent owners that focus only on the instant deal, waste time trying to pocket a little more money and draft a vague agreement may wind up going from the bargaining table to the courtroom.
Just recently, a major technology group involved in the production of cell phones has dropped two patent infringement lawsuits based on a new patent license agreement that has been entered into which continues the making of payments from the one company to the other. At the time of the dispute, it was alleged that multiple patents were being used without permission and the patent pertained to the proprietary technology in commercial mobile devices.
The agreement has an ongoing agreement between the companies, so as to ensure that the payments do not stop. Settlement was contingent upon withdrawal of litigation and the reaching of terms by which both parties could agree. The financial structure of the terms ensured that this would be the case. As the terms were reached privately, it was a matter of complete confidentiality. The fact that this occurred, perhaps, changes the way in which other litigation can be viewed. Attorneys may now suggest that new terms of agreement be reached prior to even filing suit, unless, of course, sometimes filing suit becomes strategy to bring an opposing party to settlement terms when a compromise situation seems unlikely.
One of the reasons as to why settlement and renegotiating terms amicably is important is for the reason that the relationship between the companies is better able to grow and evolve. Having a renewed patent license agreement enables the focus on further licensing opportunities in the communications market.
Since the portfolio comprised of acoustics, infrastructure, technologies, messaging, software, virtualization and cybersecurity. In light of those factors, the suit could have potentially been costly. Coming to new terms was the smart way to approach the matter, even where breaches were made. For that reason, the entering of a new license agreement has been a way, in which, the company has resolved a dispute. The stock market trade was also positively influenced by this choice. Patent licensing deals are typically structured with an upfront payment to cover past sales and ongoing royalty payments tied to future sales. Being smart and savvy at the point of entering contracts and having the correct representation of one’s interests upfront assists one going forward. It was not clear if that payment was included in that quarter’s earnings, which beat analysts’ forecast on a jump in licensing fees that includes patent payouts and royalties on branded devices and software sold by others.
Some negotiating tips for a Patent or contract negotiation include:
- Do develop a plan by knowing the strengths and weaknesses of entering the agreement
- Do your investigations of the bargaining party’s position and negotiating power
- Make terms clear
- Strive for a win/win situation
- Not to make litigation an easy option by having a dispute resolution clause
Our firm offers services to assist in the drafting and negotiating of contracts. Please contact this office further to discuss at 630-333-0333 or contact us online here.
http://fortune.com/2017/10/12/blackberry-google-android-smartphones-patents-blu/
https://www.law360.com/articles/784766/do-s-and-don-ts-for-negotiating-patent-licenses
https://crackberry.com/blackberry-and-blu-products-stop-patent-litigation-favor-patent-license-agreement#J8cHDylpbc5R2lpK.97Super Lawyers named Illinois commercial law trial attorney Peter Lubin a Super Lawyer and Illinois business dispute attorneys Patrick Austermuehle and Andrew Murphy Rising Stars in the Categories of Class Action, Business Litigation, and Consumer Rights Litigation. Lubin Austermuehle’s Illinois business trial lawyers have over thirty years of experience in litigating complex class action, copyright, noncompete agreement, trademark and libel suits, consumer rights and many different types of business and commercial litigation disputes. Our Elmhurst and Westmont business dispute lawyers, civil litigation lawyers and copyright attorneys handle emergency business lawsuits involving copyrights, trademarks, injunctions, and TROS, covenant not to compete, franchise, distributor and dealer wrongful termination and trade secret lawsuits and many different kinds of business disputes involving shareholders, partnerships, closely held businesses and employee breaches of fiduciary duty. We also assist businesses and business owners who are victims of fraud. You can contact us by calling at 630-333-0333. You can also contact us online here.