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