Same Line of Business Clause Samples

The "Same Line of Business" clause defines and restricts certain rights, obligations, or activities to those that pertain specifically to the same type of business or industry as the parties' current operations. In practice, this clause might limit a party’s ability to compete, assign rights, or engage in transactions only with entities operating in the same sector, such as restricting a licensee from sublicensing technology to companies outside the original field of use. Its core function is to ensure that the scope of the agreement remains relevant to the parties’ primary business interests and to prevent unintended expansion or competition outside the agreed-upon industry.