Cross-License

Definition

A cross-license is an arrangement in which two parties grant each other rights to use their respective patents, often to avoid mutual infringement.

Why It Matters Legally

Cross-licensing lets companies with overlapping patents operate freely without suing each other, common in industries with dense patent thickets. It can resolve disputes and reduce litigation risk.

Example Use Case

Two smartphone makers with competing patents enter a cross-license so each can use the other’s technology without infringement claims.

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Related Terms

Licensing, License Agreement, Patent Pool, Royalty, Patent Thicket