Freedom to Operate

Definition

Freedom to operate (FTO) is an assessment of whether making, using, or selling a product would infringe any active third-party patents.

Why It Matters Legally

An FTO analysis protects a company from launching into a minefield of others’ patents. It is essential before major product launches and investments, since infringement can halt sales entirely.

Example Use Case

Before entering a new market, a company conducts an FTO study, identifies a blocking patent, and licenses it to avoid future litigation.

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Related Terms

Patent Opinion, Patent Search, Patent Infringement, Licensing