Legal Definitions - patent-misuse doctrine

The patent-misuse doctrine is a rule that prevents a patent holder from using their patent to unfairly limit competition or harm the public interest. For example, a patent holder cannot use their patent to prevent others from using an unpatented product or process, or to exclude others from using a product or process beyond the patent's lifespan. If a court finds that a patent holder has engaged in patent misuse, they may lose their patent protection.

One example of patent misuse is a nonmetered license, where a patent holder charges a flat percentage of sales regardless of how much the patent is actually used. The Supreme Court has ruled that this is patent misuse, as the buyer has the right to pay only for actual use.

Another example is an implied license, where a patent holder's conduct gives another person permission to use the patent's claims. For instance, if a patent holder encourages the manufacture of infringing products, they may be seen as granting an implied license to use the patent.