In a case of first impression, the Seventh Circuit incorrectly held that a settlement agreement for patent infringement may never be considered a license. In Waterloo Furniture Components Ltd. v. Haworth, Inc., the court mischaracterizes the nature of license agreements and their relationship to the rights of patent holders. It does so by drawing a potential false dichotomy between settlements and licensing agreements. In this holding, the court misunderstands the purpose of a license agreement, its legal effects, and its dual prospective and retrospective qualities as recognized by the Federal Circuit and other appellate courts.
Cameron R. Sneddon,
Licensee Beware: The Seventh Circuit Holds That a Patent License by Any Other Name Is Not the Same,
Seventh Circuit Rev.
Available at: http://scholarship.kentlaw.iit.edu/seventhcircuitreview/vol2/iss2/13