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Patent License Agreement Indemnification

By Erik. Posted in Uncategorized | No Comments »

There are many due diligence checklists for patent transactions, which perform countless tasks requiring scrutiny. Among the tasks, part of it must: licensing agreements often contain allowances. Compensation is a contractual obligation to intervene and repay a financial obligation such as liability, loss or injury. For the most part, the party that gives the compensation will “fully” compensate the victims by replacing the losses and expenses. It is important that the appeal to counsel may also prevent the finding of a “deliberate” patent infringement, which can result in an “up to three-times” increase in patent damages. The coverage of the patent award can be simple or complex depending on what the parties intend to cover. It should be noted that patent compensation does not require the dissolution of the validity of the patent for the dissolution of the compensation. Other considerations that are unique for patent compensation are the examination of deliberate patent violations and damages to penalties (availability varies by country). 4) The licensee entrusts you for the costs, damages and legal fees as “finally” in a claim of a third party application for IP infringement.

The term “finally” means that you cannot be compensated until a final judgment is rendered on the trial – which could take many years. You do not want such a limitation in your compensation clause. One of the terms of the agreement was IP compensation that required Elastic Path to defend all claims against Coastal on the basis of allegations that Elastic Path`s software had infringed any patent and had compensated Coastal in the event of damages or losses. “Defence” or “responsibility” patent insurance does not protect against patent loss, as any “known loss” or “loss in processing” may be excluded from insurance coverage. Finally, political protection against random events and unknown certainties. A “known loss,” for example, is that “when an insured, when he buys a policy, knows that there is a high probability that he will suffer damage or that he has already suffered it. At this point, the risk of being conditional ceases and becomes a probable or known loss.┬áThe principle here is that the policyholder must not, upon the knowledge of an imminent loss or the likelihood of significant loss, resurrect his or her known risk on an insurer. Similarly, a “Loss in progress” clause refuses to cover previously discovered or manifested claims. 3) If you distribute products with licensed technology in other countries, you will not be compensated.

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