Is it possible to grant an exclusive license to another party but also keep the rights to use the patent yourself?

What is a Release clause?
February 1, 2021
Show all

Exclusive licenses for intellectual property are exclusive to everyone by the licensee.  That includes the patent owner and therefore, patent owners who choose to enter into an exclusive license agreement give up their own right to use the patent for the extent of the license.

However, a recent trend in intellectual property licensing has been to grant a license to a 3rd party while promising not to grant any further licenses to other 3rd parties.  Therefore, this type of license agreement has two main benefits.  First, it acts as an exclusive license in terms of further licensing to 3rd parties, so the licensee can rest assured that their license is exclusive to everyone but the owner.  Second, this type of licensing agreement allows the patent owner to maintain the use of the intellectual property, which is not normally possible in an exclusive licensing agreement.

If you have any questions about licensing intellectual property please contact our office for a legal consultation.