(New page: {{stub}} '''Cross-licensing''' is one of the mechanisms used by companies to obtain design freedom when a patent thicket exists. The main variables are: (1) the number of patents...) |
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'''Cross-licensing''' is one of the mechanisms used by companies to obtain design freedom when a [[patent thicket]] exists. The main variables are: (1) the number of [[patent]]s at issue; and (2) the use of balancing payments (i.e., monetary payments to even out the value of the portfolios being cross-licensed). |
'''Cross-licensing''' is one of the mechanisms used by companies to obtain design freedom when a [[patent thicket]] exists. The main variables are: (1) the number of [[patent]]s at issue; and (2) the use of balancing payments (i.e., monetary payments to even out the value of the portfolios being cross-licensed). |
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Companies generally consider three factors when deciding whether to [[license]]: (1) potential [[patent infringement]] claims the prospective [[licensee]] might have against the company; (2) potential [[patent infringement]] claims the company has against the prospective [[licensee]]; and (3) the relative interest of the parties in reaching a cross-licensing arrangement. |
Companies generally consider three factors when deciding whether to [[license]]: (1) potential [[patent infringement]] claims the prospective [[licensee]] might have against the company; (2) potential [[patent infringement]] claims the company has against the prospective [[licensee]]; and (3) the relative interest of the parties in reaching a cross-licensing arrangement. |
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Revision as of 23:44, 4 December 2009
Overview
Cross-licensing is one of the mechanisms used by companies to obtain design freedom when a patent thicket exists. The main variables are: (1) the number of patents at issue; and (2) the use of balancing payments (i.e., monetary payments to even out the value of the portfolios being cross-licensed).
The number of patents that are cross-licensed can vary from two to a complete patent portfolio, which might include thousands of patents. Balancing payments are often negotiated by the parties and are used to address a relative imbalance in patent portfolio size or quality.
Companies generally consider three factors when deciding whether to license: (1) potential patent infringement claims the prospective licensee might have against the company; (2) potential patent infringement claims the company has against the prospective licensee; and (3) the relative interest of the parties in reaching a cross-licensing arrangement.