Field use of limitation

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Field use of limitation

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Field use of limitation

  1. 1. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com FIELD USE OF LIMITATION R.LAKSHMI PAVITHRA Patents & Designs Department
  2. 2. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com INTRODUCTION Field of use limitation refers to a provision in a patent license that limits the scope of a patent owner to authorize a manufacturing licensee who manufactures a patented product or performs a patented process to do in relation to the patent, by specifying a defined field of use. Field of use limitation also specifies those fields of use from which a licensee is excluded. A licensee’s act amounts to patent infringement if the licensee exceeds the scope of license granted.
  3. 3. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com FIELD-OF-USE LICENSING – WHEN DO WE NEED IT?? • When more than one company is needed to fully develop a technology’s potential. • When different licensees are needed to address different markets. • When field-of-use licensing has the potential to significantly increase the financial return from a technology. • In all of these situations, field-of-use licensing can produce better results for everyone involved.
  4. 4. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com •  A  license  might  authorize  a  licensee  to  manufacture  patented  engines  only  for  incorporation  into  trucks,  or  to  manufacture  a  chemical  only  for  sale  to  farmers  (as  contrasted  with  home  gardeners). • If  the  licensee  exceeded  the  scope  of  the  license,  he  would  commit patent infringement. • The license permits the licensee to use the patented invention in  some, but not all, possible ways in which the invention could be  exploited. FIELD-OF-USE & IMPLEMENTATION
  5. 5. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com •  General Talking Pictures Corp. v. Western Electric Co •  a license might authorize a licensee to manufacture patented  engines only for incorporation into trucks (the "truck field"), or  to manufacture such engines only for sale to farmers (the "field  of distribution to farmers").  • The  doctrine  of  the General Talking Pictures case  does  not  apply  to  a  patent  owner’s  sale  (or  its  licensee's  sale)  of  a  product  to  a  customer  that  imposes  a  restriction  on  what  the  customer may subsequently do with the product. CASE STUDY
  6. 6. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com • A  licensor  might  grant  one  licensee  the  right  to  practice  the  patent solely to manufacture and sell a particular product and  grant  a  second  licensee  the  right  to  practice  the  patent  to  manufacture and sell a different product. • However,  a  restriction  on  field  of  use  imposed  by  a  potential  licensor can reduce the motivation of a potential licensee, so a  balance must be struck between the needs and motivations of  each party to the license. FIELD OF USE –  IS A STRATEGIC GAME
  7. 7. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com FIELD OF USE – STRENGTHENS THE PATENT HOLDER AS AGAINST THE LICENSEE • The licensee’s right to use the technology is limited in scope. • Field of use limitation is powerful - electrical engineering, computer, chemical, and health care areas. • Biochemistry/Biotechnology industry runs by strategizing the field of use in licensing. • A company that develops therapeutics may not be interested in performing DNA-based diagnostic tests as a service.
  8. 8. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com • License it to one company with no limitations. • License it to one company with the requirement that it develop all uses, either directly or through sublicensing. • License it to multiple companies with field-of-use licenses. • Most importantly, a patent holder must ascertain the possible fields of use. APPROACHES IN LICENSING PATENTS
  9. 9. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com APPROACHES IN LICENSING PATENTS • Like any legal contract, the more rigid the licensing agreement is, the better is the IP strategy. • Make the “grant clause” as specific as possible. •Define the Licensed Field of Use to prevent any possiblities of Infringement. • Limit the field of use of a license by limiting the grant of rights to
  10. 10. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com FIELD USE OF LIMITATION - CHALLENGES •Overlap of rights between licenses. •Maintaining control of patent prosecution. •Reimbursing patent expenses. •Handling patent infringement/ interference issues.
  11. 11. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com CONCLUSION Field of Use is a grey area in a country like India. While we are concentrating on securing patents, adequate importance should be given to applying intelligent strategies for monetizing the same. Field of Use Limitation is undoubtedly a boon for the strategizing departments for individual and giant patent holders to push the scope of their patents to higher levels.
  12. 12. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com

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