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ARTICLE · 05 APRIL 2018

Activity Outside Licensed "Field Of Use" Not A Material Breach

The US Court of Appeals for the Federal Circuit found a licensor's termination of a license agreement ineffective, concluding that a licensee's activity outside ...

United StatesIntellectual Property

The US Court of Appeals for the Federal Circuit found a licensor's termination of a license agreement ineffective, concluding that a licensee's activity outside of a "field of use" provision was not a material breach of that agreement. MACOM Technology Solutions Holdings, Inc., Nitronex, LLC v. Infineon Technologies, et al., Case No. 17-1448 (Fed. Cir., Jan. 29, 2018) (Prost, CJ).

Nitronex developed semiconductors using gallium-nitride and obtained several patents related to this technology. Nitronex sold its gallium-nitride patents to International Rectifier in 2010. At the same time, both companies executed a separate license agreement that licensed back to Nitronex certain rights under the patents. Both companies were later acquired and renamed, where MACOM was formerly Nitronex and Infineon was formerly International Rectifier. The license agreement included an Exclusive Field of Use provision for the gallium-nitride-on-silicon technology under which MACOM had

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