Licensee estoppel

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Licensee estoppel is a doctrine under which a licensee of an intellectual property right, generally a patent or a trademark, is estopped from challenging the validity of the licensed property. The basis for the doctrine is the premise that a licensee should not be able to enjoy the benefit of an agreement and at the same time attack the validity of the intellectual property that forms the basis of the agreement. [1] [2]

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United States

In United States patent law, the doctrine has been overturned. In 1969, the U.S. Supreme Court, in Lear v. Adkins , [3] held the doctrine inconsistent with a federal policy that the invalidity of specious patents should be unmasked in order to permit full and free competition in technology ideas that belong in the public domain. The strong public interest in invalidating patents, allowing public access to non-patentworthy technology, justified permitting licensees to challenge patents. [4]

In the United States, the doctrine remains valid in trademark law, where the public policy concerns differ from the patent context. [4] It also applies with respect to trade secret licenses. [5] Courts differ on whether it applies in a copyright context. [5]

See also

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Intellectual property (IP) is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The best-known types are patents, copyrights, trademarks, and trade secrets. The modern concept of intellectual property developed in England in the 17th and 18th centuries. The term "intellectual property" began to be used in the 19th century, though it was not until the late 20th century that intellectual property became commonplace in most of the world's legal systems.

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The doctrine of assignor estoppel is a doctrine of United States patent law barring a patent's seller (assignor) from attacking the patent's validity in subsequent patent infringement litigation. The doctrine is based on the doctrine of legal estoppel, which prohibits a grantor from challenging the validity of his/her/its grant.

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Statutory damages are a damage award in civil law, in which the amount awarded is stipulated within the statute rather than being calculated based on the degree of harm to the plaintiff. Lawmakers will provide for statutory damages for acts in which it is difficult to determine a precise value of the loss suffered by the victim. This could be because calculation of a value is impractical, such as in intellectual property cases where the volume of the infringement cannot be ascertained. It could also be because the nature of the injury is subjective, such as in cases of a violation of a person's rights. The award might serve not only as compensation but also for deterrence, and it is more likely to succeed in serving a deterrence function when the potential defendants are relatively sophisticated parties. Other functions that can be served by statutory damages include reducing administrative costs and clarifying the consequences of violating the law.

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An implied license is an unwritten license which permits a party to do something that would normally require the express permission of another party. Implied licenses may arise by operation of law from actions by the licensor which lead the licensee to believe that it has the necessary permission.

Lear, Inc. v. Adkins, 395 U.S. 653 (1969), is a decision of the U.S. Supreme Court overturning the doctrine of licensee estoppel and holding that public interest considerations require that licensees be free to challenge the validity of possibly spurious patents under which they are licensed. This entailed the overruling of Automatic Radio Mfg. Co. v. Hazeltine Research, Inc. and prior cases that it had reaffirmed.

The doctrine of non-derogation from grants is a principle of the law of England and Wales. As the House of Lords explained in British Leyland Motor Corp. v. Armstrong Patents Co., it states that a seller of realty or goods is not permitted to take any action that will lessen the value to the buyer of the thing sold.

<span class="mw-page-title-main">Intellectual property in Iran</span>

Iran is a member of the WIPO since 2001 and has acceded to several WIPO intellectual property treaties. Iran joined the Convention for the Protection of Industrial Property in 1959. In December 2003 Iran became a party to the Madrid Agreement and the Madrid Protocol for the International Registration of Marks. In 2005 Iran joined the Lisbon Agreement for the Protection of Appellations of Origin and their International Registration, which ensures the protection of geographical names associated with products. As at February 2008 Iran had yet to accede to The Hague Agreement for the Protection of Industrial Designs.

Motion Picture Patents Co. v. Universal Film Mfg. Co., 243 U.S. 502 (1917), is United States Supreme Court decision that is notable as an early example of the patent misuse doctrine. It held that, because a patent grant is limited to the invention described in the claims of the patent, the patent law does not empower the patent owner, by notices attached to the patented article, to extend the scope of the patent monopoly by restricting the use of the patented article to materials necessary for their operation but forming no part of the patented invention, or to place downstream restrictions on the articles making them subject to conditions as to use. The decision overruled The Button-Fastener Case, and Henry v. A.B. Dick Co., which had held such restrictive notices effective and enforceable.

Pope Mfg. Co. v. Gormully, 144 U.S. 224 (1892), was an early United States Supreme Court decision refusing, on public policy grounds, to enforce an agreement not to contest patent validity. The Supreme Court later relied on Pope in Lear, Inc. v. Adkins as authority in support of overruling the doctrine of licensee estoppel. That doctrine had prohibited patent licensees from challenging the validity of patents under which they had been licensed.

Blonder-Tongue Labs., Inc. v. University of Ill. Foundation, 402 U.S. 313 (1971), is a decision of the United States Supreme Court holding that a final judgment in an infringement suit against a first defendant that a patent is invalid bars the patentee from relitigating the same patent against other defendants. In so ruling, the Supreme Court overruled its 1936 decision in Triplett v. Lowell, which had required mutuality of estoppel to bar such preclusion, and held that the better view was to prevent relitigating if the plaintiff had had a full and fair opportunity to litigate the issue in question.

Minerva Surgical, Inc. v. Hologic, Inc., 594 U.S. ___ (2021), was a United States Supreme Court case dealing with the principle of assignor estoppel and its application. The Supreme Court reaffirmed the principle of assignor estoppel, however with the exception that the doctrine is only applied when assignors assertions are actually consistent with previous representations as to the patent. The majority decision was written by Justice Elena Kagan, with Justice Samuel Alito and Justice Amy Coney Barrett filing separate dissenting opinions.

References

  1. Epstein, Richard A. (2010). "The Disintegration of Intellectual Property? A Classical Liberal Response to a Premature Obituary". Stanford Law Review . 62 (2): 455, 498. JSTOR   40649631.
  2. Adkins v. Lear, Inc., 67 Cal.2d 882 (Cal. 1967)("The theory underlying this doctrine is that a licensee should not be permitted to enjoy the benefit afforded by the agreement while simultaneously urging that the patent which forms the basis of the agreement is void.")
  3. Lear, Inc. v. Adkins , 395U.S.653 (1969).
  4. 1 2 Schechter, Roger; Thomas, John (2008). Schechter and Thomas' Intellectual Property: The Law of Copyrights, Patents and Trademarks (Hornbook Series): The Law of Copyrights, Patents and Trademarks. West Academic. § 32.2.2. ISBN   9781628105186.
  5. 1 2 Pisacreta, Edward A.; Ostrow, Seth H.; Adler, Kenneth A. (2011). Intellectual Property Licensing: Forms and Analysis. Law Journal Press. pp. 1–15. ISBN   9781588520869.