A Cautionary Tale For Sublicensees

By John Loughnane (April 3, 2018, 2:43 PM EDT) -- In a venue not that far away — just south of New Jersey — Sirius Radio has been defending itself against a patent infringement suit that deserves the attention of any party that has ever sublicensed rights or is thinking of doing so. Sirius fully paid for an irrevocable sublicense of the patent rights at stake. Moreover, Sirius has been using the technology for approximately 20 years. Yet, it has been accused of infringement by the master licensor that granted rights to the sublicensor that licensed to Sirius. The nuance to the story is that the sublicensor commenced bankruptcy, which resulted in a rejection of the license between the master licensor and sublicensor. That development led to the master licensor contending that Sirius' rights under its sublicense were forfeited as a result of that rejection.  ...

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