cross-licensing

Cross Licensing refers to the cross-license agreement between patentees, entered into for purposes of avoiding litigation concerning conflicting patents . It helps preserve the financial incentives for inventors to commercialize their existing innovations and undertake new, potentially patentable research.

Cross-license agreements have been frequently litigated in antitrust law . The court will analyze the cases that involve cross-license agreements under the Rule of Reason , in which both the anti-competitive and the pro-competitive effect of the agreement will be considered. Generally, such agreements are pro-competitive.

See e.g.; Feinsod v. Stiefel Labs., Inc. 1 Misc.3d 909 (2004).