How do licensing activities support commercial success claims in patent cases?

How do licensing activities support commercial success claims in patent cases?

Licensing activities can provide strong support for commercial success claims in patent cases. The MPEP 716.03(b)(II) addresses this:

Licensing activities showing acceptance by others may be used to demonstrate commercial success if there was licensing of the invention by others during the period attributable to the applicant’s efforts.

Licensing can support commercial success by demonstrating:

  • Industry recognition of the invention’s value.
  • Willingness of competitors to pay for the technology.
  • Widespread adoption of the invention.
  • Financial success attributable to the invention.

To effectively use licensing evidence:

  1. Provide details of licensing agreements, including financial terms if possible.
  2. Show the number and diversity of licensees.
  3. Demonstrate that licensing occurred due to the merits of the invention, not other factors.
  4. Explain how licensing relates to the specific claimed features.
  5. If possible, include testimonials from licensees about the invention’s value.

Remember, as stated in the MPEP, The fact that licensing activities have taken place in the industry does not always reflect commercial success of the patented invention. It’s crucial to establish that the licensing is due to the invention’s merits rather than other factors like avoiding litigation.

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Tags: commercial success, Licensing, non-obviousness, patent arguments