Imation v. Philips: Federal Circuit Holds That Patent License Extends to Subsidiaries Acquired After Expiration of License Agreement

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The Federal Circuit held in Imation Corp. v. Koninklijke Philips Electronics N.V.1 that Imation’s rights under a cross-license agreement with Philips extend to two subsidiaries that Imation acquired after the termination of the agreement. The decision is a reminder of how important it is that license agreements be drafted clearly, carefully, and consistently to avoid unintended consequences of economic significance for the parties.

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