Legal Definitions - cross-license

Definition: A cross-license is an agreement between two or more patent holders to exchange licenses for their mutual benefit and use of the licensed products.

Example: Company A and Company B both hold patents for different parts of a product. They enter into a cross-license agreement, allowing each other to use their respective patents to manufacture and sell the product without infringing on each other's patents.

Explanation: In this example, Company A and Company B have agreed to exchange licenses for their patents, allowing them to use each other's patents to manufacture and sell the product. This agreement benefits both companies by avoiding patent infringement and allowing them to use each other's technology to improve their product.