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ARTICLE · 26 MARCH 2014

The key to prolonging patent royalty streams

Corrs Chambers Westgarth
Corrs Chambers Westgarth
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Corrs Chambers Westgarth

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Policy makers should amend s 145 of the Patents Act to address its uncertain application and potential circumvention .

AustraliaIntellectual Property

Australian policy makers should amend section 145 of the Patents Act to address the uncertain application of the provision and its potential circumvention in relation to patent pool licence agreements

A recent Federal Court ruling by Justice Flick has provided judicial guidance on whether a licence can be terminated when any one of the patents it covers expires. However, broader issues still need to be considered.

In the case of MPEG LA LLC v Regency Media [2014] FCA 180, Justice Flick ruled that all the Australian patents for the "inventions" it covered would need to expire before the MPEG licence agreement could be terminated under section 145 of the Patents Act. Under section 145, a contract relating to a patent licence can be terminated early by a licensor or licensee when all the patents by which the invention was protected cease to be in force (for example, where they expire).

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