Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

The Bankruptcy StrategistKickerFeaturesSectionsNewsLJN Newsletters

The Application of 365(n) to Cross-License Agreements

By Jeff J. Marwil, Jeremy T. Stillings, and Brandon W. Levitan

In high-tech industries such as semiconductor manufacturing, the practice of engaging in broad patent cross-license agreements with competitors has become common. This practice has arisen from the recognition that the complex web of patent rights in such industries is so thick that participants may not be able to avoid infringing on existing patents, or even definitively determine whether a new product infringes on existing patents prior to bringing it to market.

Moreover, once industry participants have engaged in patent cross-licenses, they may make substantial investments in reliance on the enforceability of those cross-license agreements. For example, the costs of creating a state-of-the-art semiconductor fabrication facility exceed $1 billion. See Heck, Kaza, and Pinner, Creating Value in the Semiconductor Industry at 9, McKinsey on Semiconductors (Autumn 2011) (“The cost of building leading-edge fabs continues to increase as well; for example, the average 8-inch fab costs $1.6 billion to build, while a state-of-the-art 12-inch fab costs $3 billion to $4 billion.”); Brief for the Semiconductor Industry Association, Chamber of Commerce of the United States of America, National Association of Manufacturers, and Business Software Alliance as Amici Curiae in Support of Appellees at 11, Jaffe v. Samsung Electronics Co., Ltd., 737 F.3d 14 (4th Cir. 2013) (No. 12-1802), ECF 42-1 (“The average semiconductor fabrication facility costs $4 to $5 billion dollars to construct”).

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs Image

A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.

Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It Image

Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?

Blockchain Domains: New Developments for Brand Owners Image

Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.

Coverage Issues Stemming from Dry Cleaner Contamination Suits Image

In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.