Field use of limitation

CHENNAI3rd Floor, ‘Creative Enclave’,

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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

COIMBATOREBB1, Park Avenue,

# 48, Race Course Road,Coimbatore - 641018.

Tel: +91 - 422 – 6552921

[email protected]

WEBSITEwww.altacit.com

FIELD USE OF LIMITATION

R.LAKSHMI PAVITHRAPatents & Designs Department



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

[email protected]


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.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

[email protected]


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.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

[email protected]


• 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

https://en.wikipedia.org/wiki/Patent_infringement



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

[email protected]


• 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

https://en.wikipedia.org/wiki/General_Talking_Pictures_Corp._v._Western_Electric_Co.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

[email protected]


• 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



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

[email protected]


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.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

[email protected]


• 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



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

[email protected]


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

specific patent claims.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

[email protected]


FIELD USE OF LIMITATION - CHALLENGES

•Overlap of rights between licenses.

•Maintaining control of patent prosecution.

•Reimbursing patent expenses.

•Handling patent infringement/ interference issues.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

[email protected]


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.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

[email protected]


Date post:	21-Feb-2017
Category:	Law
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Field use of limitation

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