A Few Ways To Work Around The Brulotte Rule

Law360, New York (August 25, 2015, 9:53 AM EDT) -- A patent issued under the U.S. patent laws has a finite life, which is 20 years from the date of filing. A strategy to monetize a patent through licensing must take into consideration that finite life span because after the 20-year patent term, the underlying invention falls into the public domain and is thereafter free for anyone to use and commercially exploit. A patent holder may not continue to receive license royalties after the patent's expiration, as long ago decided by the U.S. Supreme Court in Brulotte v. Thys Co., 379 U. S. 29 (1964). The court ruled this way as a matter of public policy. Interestingly, the patent statutes do not specifically proscribe payment of royalties after a patent's expiration....

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