Patent Royalties

News & Analysis as of

Supreme Court Update: Horne V. Dep't Of Agriculture (14-275), Kimble V. Marvel Entertainment (13-720), Patel V. City Of Los...

Raisins, radioactive wrists, Red Roof registries, and reformatory roughhousing were all on the Court's radar Monday (it's a very broad radar horizon), as it issued decisions in Horne v. Dep't of Agriculture (14-275), holding...more

How a Trade Secret Could Have Saved a Running Royalty From a Nearly Invincible Law

In Kimble v. Marvel Entertainment, LLC, just handed down June 22, 2015, the Supreme Court reaffirmed the 50 year old holding of Brulotte v. Thys Co., 379 U. S. 29 (1964), that patent royalties cannot extend beyond the...more

Kimble v. Marvel: Supreme Court affirms unenforceability of contract provisions that run royalties beyond patent’s term: 3...

The Supreme Court this week upheld a long-standing precedent that restricts the ability of a patent holder to charge a royalty beyond the term of a patent. In a 6-3 decision, the court in Kimble v. Marvel Entertainment...more

High Court Upholds Ban On Post-Expiration Patent Royalties While Recommending Loopholes

Background - On Monday, the U.S. Supreme Court left intact a 50-year-old rule prohibiting royalties for post-expiration use of a patent. In Kimble v. Marvel Entertainment, LLC, No. 13-720 litigation arose from Marvel’s...more

Litigation Alert: Even Spider-Man Can't Defeat Ban on Post-Patent Expiration Royalties

Fifty years ago, in Brulotte v. Thys Co., the U.S. Supreme Court held that “a patentee’s use of a royalty agreement that projects beyond the expiration date of the patent is unlawful per se.” 379 U.S. 29, 32 (1964). On June...more

Supreme Court Keeps Spider-Man Maintaining The Status Quo - Royalties End When The Patent Expires

On June 22, 2015, the United States Supreme Court issued its decision in Kimble v. Marvel Entertainment, LLC, 576 U. S. ____ upholding a long-standing 50-year rule from Brulotte v. Thys Co., 379 U.S. 29 (1964) that prevents...more

U.S. Supreme Court Reaffirms Prohibition on Post-Expiration Patent Royalties, and the Vitality of Stare Decisis, in the Kimble...

On June 22, 2015, in a 6-3 decision in Kimble et al. v. Marvel Enterprises, LLC, 576 U.S. __ (2015), the United States Supreme Court reaffirmed its holding in Brulotte v. Thys, 379 U.S. 29 (1964), that it is per se patent...more

Supreme Court Affirms that a Patent Holder Cannot Charge Royalties for Post-Expiration Use of the Invention

More than fifty years ago, the United States Supreme Court held that a patent holder cannot receive royalties for sales made after the patent expires because this arrangement would effectively extend the life of the patent....more

U.S. Supreme Court Preserves 50-Year-Old Rule Barring Post-Patent Royalties

On Monday, June 22, 2015, the U.S. Supreme Court issued a 6-3 decision in Kimble v. Marvel Entertainment, declining to reverse longstanding, yet controversial, precedent holding post-patent term royalties to be unlawful per...more

The Finite Life of a Patent Upheld: No Royalties After Expiration

The U.S. Supreme Court, in a 6 to 3 ruling citing stare decisis, upheld the half-century rule against royalty payments accruing after expiration of a patent. The Court’s decision in Kimble v. Marvel Entertainment, LLC is a...more

Supreme Court Upholds Precedent Prohibiting Post-Expiration Patent Royalties, but Leaves Open Parties' Options for Creative...

On June 22, 2015, the United States Supreme Court upheld the 50-year-old "Brulotte rule," which prohibits a patent owner from negotiating a license agreement that requires royalties to be paid after the expiration of the...more

Supreme Court Upholds Ban on Royalties after Licensed Patent Expires

In a 6-3 decision in Kimble v. Marvel, the U.S. Supreme Court refused to overturn the long-standing rule that bars a licensor from being able to collect royalties for sales after the expiration of the licensed patent—even if...more

Rebuffing Critics, Supreme Court Re-Affirms Ban on Post-Expiration Patent Royalties

Fifty years ago, in Brulotte v. Thys Co., the U.S. Supreme Court held that the collection of royalties after a patent’s expiration constitutes per se patent misuse. Brulotte has been widely criticized as economically...more

Supreme Court Upholds Brulotte Rule Prohibiting Post-Expiration Patent Royalties

On June 22, 2015, the Supreme Court issued its decision in Kimble v. Marvel Entertainment, LLC, upholding the rule, first announced in Brulotte v. Thys Co., 379 U. S. 29 (1964), that an agreement allowing a patent owner to...more

Practice Considerations Post Kimble v. Marvel

The U.S. Supreme Court’s recent decision in Kimble et al. v. Marvel Entertainment, LLC, rejuvenates a 50-year old rule addressing patent royalties, bringing it to the forefront of patent and licensing practice. On June 22,...more

The 'Super Powered' Rule of Stare Decisis Defeats Spider Man

The Supreme Court of the United States, in a 6-3 decision, left undisturbed the rule from its 51-year-old decision in Brulotte v. Thys Co. (1964), invoking stare decisis and rejecting arguments seeking to overturn the rule...more

Intellectual Property Alert: Supreme Court Affirms Brulotte, “Green-Lights” Collecting Patent Royalties After Patents Expire

In an important decision for patent licensing freedom, on June 22, 2015, the United States Supreme Court cleared the way for spreading patent royalty payments after the expiration of patents, in some simple and other complex...more

Supreme Court Upholds Ban on Patent Royalties After Patent Term Expiration in Kimble v. Marvel Entertainment, LLC, No. 13-720...

On Monday, June 22, 2015, the Supreme Court reaffirmed its earlier precedent barring royalties on a patent after the patent term expires. Kimble v. Marvel Entertainment, LLC, No. 13-720 (U.S. June 22, 2015). Justice Kagan...more

U.S. Supreme Court Confirms That Post Patent Expiration Royalties Are Prohibited

Background of the Case - The dispute in Stephen Kimble v. Marvel Enterprises, Inc., Case No. 13-720, ___ U.S. ___ (2015), arose out of a 2001 settlement of a prior lawsuit between the parties. The prior suit had...more

Supreme Court Decides Kimble v. Marvel Entertainment, LLC

On June 22, 2015, the U.S. Supreme Court decided Kimble v. Marvel Entertainment, LLC, No. 13-720, declining to overrule Brulotte v. Thys Co., 379 U.S. 29 (1964), and holding that a contract transferring or licensing patent...more

Supreme Court Still Prohibits Patent Royalties For Activity Occurring After Patent Expires (Kimble V. Marvel)

Today, the Supreme Court declined to overrule its prior decision in Brulotte v. Thys Co., 379 U.S. 29 (1964), and maintained its ruling that a patent holder cannot charge royalties for the use of his invention where the use...more

Getting Tangled in the Web of a Hybrid Royalty Clause Part II: Supreme Court Re-affirms Brulotte Decision

In July of 2013, I wrote a blog post about the Ninth Circuit Court of Appeal’s decision in Kimble v. Marvel Entertainment LLC and its effect upon royalty provisions in hybrid IP license agreements. (...) By “hybrid” I am...more

SCOTUS Reaffirms that in Antitrust Cases, It Gives Less Deference to Precedent

Yesterday, in Kimble v. Marvel Entertainment, LLC, the U.S. Supreme Court upheld the rule first announced in Brulotte v. Thys Co., 379 U.S. 29 (1964), that a patentee cannot collect royalties on sales made after expiration of...more

Supreme Court Declines To Overrule Brulotte Rule: Post-Expiration Patent Royalties Remain Unlawful

Background - Fifty years ago, the U.S. Supreme Court ruled that a patent license agreement that requires the licensee to pay royalties after the expiration of the licensed patent is unlawful per se, because such payments...more

Supreme Court Holds Patent Royalties Expire When Patent Expires

In 1964, the Supreme Court held, in Brulotte v. Thys Co., that a patent owner may not receive royalties on a patent after the patent expires. Today, in Kimble v. Marvel Entertainment, the Supreme Court declined to overturn...more

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