Exclusive License Held to be Effective Assignment

Maier_03In Azure Networks, LLC v. CSR PLC, Case No. 13-1459, the Federal Circuit agreed with a district court’s finding that a co-plaintiff effectively assigned its patent rights and therefore lacked standing to bring suit.  Azure Networks had donated the asserted patent to a non-profit, Tri-County.  Tri-County subsequently signed an exclusive license agreement with Azure, granting Azure the rights to maintain and assert the patent.  The deal was purported to have established venue in the Eastern District of Texas, a favorable court to the plaintiffs.  However, the courts found that based on the licensing deal, Azure possessed all substantial rights to the patent, including all exclusionary rights.  Tri-County did possess legal title, a right to a portion of royalties, and a reversionary right, however, it lacked exclusionary interests.  Without exclusionary interests, the court affirmed the dismissal of Tri-County as a co-plaintiff.

source: Maier & Maier, PLLC

345 South Patrick Street
Alexandria, VA 22314
www.maierandmaier.com

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