TransCore Ruling May Change How Licenses Drafted

Law360, New York (April 9, 2009, 12:00 AM EDT) -- In a ruling that could dramatically change how patent licenses are drafted, a federal appeals court has held that a covenant not to sue is a license and can be subject to patent exhaustion.

The U.S. Court of Appeals for the Federal Circuit on Wednesday affirmed the dismissal of TransCore LP’s patent infringement suit against Electronic Transaction Consultants Corp. for using Mark IV Industries' automated toll technology, finding that TransCore’s patent rights were exhausted based on a covenant not to sue in an earlier settlement agreement...
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