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Old 03-22-2011, 08:53 AM   #16
rhadin
Literacy = Understanding
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Join Date: Dec 2007
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Quote:
Originally Posted by kjk View Post
I actually wonder what does happen to those licensees when patent battles go sour.
It depends on the contract. Usually there is no refund because both parties to the contract have agreed that the patent is good. What does happen is that the contract is terminated. However, nothing happens until the U.S. Supreme Court has spoken, which can be years from now.

The license is really a form of insurance. It insures that the licensee won't be subject to a lawsuit. Like most insurance policies, it gets renewed year to year, whcih is what the license fee is -- the yearly insurance premium.
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