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ARTICLE · 06 OCTOBER 2014

License Definition Trumps Need For Actual Infringement Finding

Cellport Systems and Peiker Acustic entered into a licensing agreement involving three Cellport patents and seven Peiker products.

United StatesIntellectual Property

Cellport Systems, Inc. v. Peiker Acustic GMBH & Co. KG

In a case addressing whether royalties are due under a patent licensing agreement even if the products are not covered by the patents, the U.S. Court of Appeals for the Tenth Circuit affirmed in part and reversed in part a lower court's decision to award royalties, finding that royalties may be due so long as the products are covered by text in the agreement acknowledging such products do infringe.  Cellport Systems, Inc. v. Peiker Acustic GMBH & Co. KG, Case Nos. 13-1029, -1046 (10th Cir., Aug. 5, 2014) (Lucero, J.).

Cellport Systems and Peiker Acustic entered into a licensing agreement involving three Cellport patents and seven Peiker products.  The seven Peiker products were expressly identified under the definition of "Licensed Products," which provided that "all of such foregoing products and components are, and any substantially similar products and components would be, Licensed Products . . ."

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