Legal Definitions - antishelving clause

An antishelving clause is a provision in a patent-licensing contract that requires the licensee to put the patented article into commercial use within a specified time and to notify the patentee if the licensee decides to stop selling or manufacturing it. This clause is usually included in contracts where payment is based on royalties.

For example, if a company licenses a patent for a new type of phone case, the antishelving clause would require the company to start selling the phone case within a certain timeframe. If the company decides to stop selling the phone case, they must notify the patent owner. If they fail to do so, they risk losing their license or exclusivity.

Antishelving clauses are also used in trademark licenses. For instance, if a company licenses a trademark for a new type of energy drink, the antishelving clause would require the company to start selling the energy drink within a certain timeframe. If the company decides to stop selling the energy drink, they must notify the trademark owner. If they fail to do so, they risk losing their license or exclusivity.