Licensing & Copyright (Fall 2008) Reading Assignments (1 st Portion Cumulative) Bensen

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1 Licensing & Copyright (Fall 2008) s (1 st Portion Cumulative) Bensen I. Overview of Basic Forms of IP Protection Expert Commentary for: 1 II. The Nature of IP Licenses Yield Dynamics, Inc. v. TEA Systems Corp., 154 Cal. App. 4 th 547 (2007) (there is no need to read the case itself) Case: Leadsinger, Inc. v. BMG Music Publ g, 512 F.3d 522, 85 U.S.P.Q.2D 1257 (9 th Cir. 2008) Text Ch.1: Nature of a License and Applicable Law What is a License? Introduction, pp. 3-6 A. What Law Applies? Text Ch.1.II: Nature of a License and Applicable Law What Law Applies Federal Property Rules? Introduction, pp ProCD, Inc. v. Zeidenberg, pp Notes, pp Lasercomb v. Reynolds, p Notes 1-3, pp Text Ch.1.III: Nature of a License and Applicable Law What Law Applies Within a State Introduction pp Advent Sys. Ltd. v. Unisys Corp., pp Notes, pp B. Contract Formation Issues Text Ch. 2.I: Contract Formation Issues - Nature of the Topic Introduction, pp Expert Commentaries are available on Lexis. To locate a Commentary for a particular case, pull up the case on Lexis and click on Expert Commentary, which will usually appear just below the case s caption. 1

2 1. Trade Secrets and Disclosure Text Ch. 2.I: Contract Formation Issues Pretransaction Disclosure and Idea Submission Trade Secrets and Disclosure Introduction, pp Celeritas Techs. Ltd. v. Rockwell Int l, Inc., pp Notes, pp Shrinkwrap & Clickwrap Licenses Text Ch. 6.III.A: Transfer, First Sale and Exhaustion - License, First Sale, and Patent Exhaustion Copyright First Sale Introduction, pp DCS Comms. Corp. v. Pulse Comm., pp Adobe Sys., Inc. v. One Stop Micro, Inc., pp MILGRIM Shrinkwrap & Clickwrap Licenses Text Ch. 2.III Contract formation Issues - Shrink Wrap Licenses M.A. Mortenson Co. v. Timberline Software Corp., pp III. Formalities Text Ch. 3.I: Statute of Frauds, Writings and Electronic Licensing Formalities and Disclosures Introduction, p. 109 A. Federal Law Text Ch. 3.I.A: Statute of Frauds, Writings and Electronic Licensing Federal Law Discussion, pp B. State Law/Statute of Frauds Text Ch. 3.I.B: Statute of Frauds, Writings and Electronic Licensing State Law Discussion, pp IV. Essential Elements of an IP License A. Parties MILGRIM Parties Licensor Owner/Developer of Licensed Matter Right to Grant License Licensee as Direct User of Licensed Matter 2 Milgrim refers to Roger M. Milgrim & Eric E. Bensen, MILGRIM ON LICENSING (2008), which is available on LexisNexis at Search/Secondary Legal/Matthew Bender/By Area of Law/Intellectual Property/Milgrim on Licensing). A hard copy of this work is available in the Library (Law Classified, KF 3145.M55). 2

3 B. Recitals MILGRIM Recitals Aide to Future Interpretation of the Parties Recital Need Not be Part of the Agreement Aide to Construction in Event of Disputes C. Definitions MILGRIM 14:11 Affiliates 14:12 Agreement Subject Matter of License Reference to Physical Repository of Trade Secrets Royalty Base Net Sales Improvements D. Grant Text Ch. 5.II.A. Interpretation and the Grant Clauses Granting Clauses: Defining the Subject Matter Scope as Compare to Covenant Sun Microsystems Inc. v. Microsoft Corp., pp Notes, pp Text Ch. 12.IV: Remedies for Breach of a License - Distinguishing Contract [Breach] and Property[Infringement] Remedies Introduction, pp United States Naval Institute v. Charter Comms., Inc., pp Graham v. James, pp

4 1. Rights Granted a. Copyright MILGRIM Copyright b. Trademark MILGRIM Trademark c. Patent MILGRIM Patent d. Trade Secret MILGRIM Trade Secret 2. Nature of License Grant Text Ch. 5: Interpretation and the Grant Clause Granting Clauses: Defining the Subject Matter Introduction, p. 196 Apple Computer, Inc. v. Microsoft Corp., pp Text Ch. 5.II.B. Interpretation and the Grant Clauses Granting Clauses: Defining the Subject Matter - Language and Rights Introduction, pp Kennedy v. National Juvenile Detention Assoc., pp Text Ch. 5.III. Interpretation and the Grant Clauses Changing Technology and Context Boosey & Hawkes Music Publishers, Ltd. v. Walt Disney Co., pp Notes, pp a. Assignments MILGRIM Assignment Goodwill: Trademark Assignment b. Exclusive Licenses MILGRIM Exclusive License Text Ch. 4.I: Exclusive Licenses - Nature of the Transaction Introduction, pp Notes, pp i. Obligations & Rights Text Ch. 4.II.A: Exclusive License Licensee s Obligations and Rights - Obligation to Exploit the Subject Matter Introduction, pp Permanence Corp. v. Kennametal, Inc., pp Notes, pp Text Ch. 4.III: Exclusive Licenses - Licensor Obligations Kepner-Tregoe, Inc. v Vroom, pp Notes, pp c. Sole Licenses MILGRIM Sole License 4

5 d. Nonexclusive Licenses MILGRIM Nonexclusive License e. Field of Use MILGRIM 15.36Field of Use f. Territory MILGRIM Territory 3. Improvements & Grantbacks a. Improvements i. Who Owns the Improvement Absent a Contractual Provision? (a) Patents & Trade Secrets: (b) Copyright (c) Trademark ii. Improvements by Licensor (a) Suspension of Duty in the Event of Default iii. Improvements By Licensee MILGRIM Improvements Licensor s Improvements Licensee s Improvements 5