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Allow the Federal Courts to Nullify License Agreements for Invalid or Fraudulent Patents

Created by D.F. on August 14, 2013

Companies should be able to get out of patent licensing agreements if the patents are later ruled invalid.

Typically, a patent assertion entities will secure licenses from multiple alleged infringers to their intellectual property including up-front cash payments and ongoing royalties. If the patent underlying the license is later found to be invalid, or even fraudulent, the licenses usually remain in force and the licensees have often agreed, under duress, to surrender their right to legal recourse.

Add to the legislative priorities of the White House Task Force on High-Tech Patent Issues an item invalidating such restrictions in a manner similar to laws invalidating non-compete clauses in employment contracts. Allow the awarding of damages to recover the ill gotten cash payments.

Innovation: Arts & Technology
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