Common use of Litigation by Sublicensee Clause in Contracts

Litigation by Sublicensee. Any Sublicense must include the following clauses: (A) In the event sublicensee brings an action seeking to invalidate any Licensed Patent: (1) sublicensee will [*] during the pendency of such action. Moreover, should the outcome of such action determine that any claim of a patent challenged by the sublicensee is both valid and infringed by a Licensed Product, sublicensee will [*]; (2) sublicensee will [*] during the period challenge; (3) any dispute regarding the validity of any Licensed Patent shall be [*], and the parties agree [*]; and (4) sublicensee shall [*]. (B) Sublicensee will provide written notice to Stanford at least [*] prior to bringing an action seeking to invalidate a Licensed Patent. Sublicensee will include with such written notice [*]. (C) Notwithstanding the foregoing, in the event a sublicensee files a counterclaim asserting invalidity of one or more Licensed Patents in response to an actual infringement suit directed to the Licensed Patents by Stanford, such sublicensee shall not be deemed to have initiated an action to invalidate a Licensed Patent and Sections 4.4(A) and 4.4(B) above shall not apply.

Appears in 4 contracts

Sources: Exclusive (Equity) Agreement, Exclusive Agreement (Forty Seven, Inc.), Exclusive Agreement (Forty Seven, Inc.)