Abstract
Part I of this article, which was published in the previous issue of JIPLP [change to citation at proof stage], dealt with the very tricky question of when an agreement can be terminated and the risks involved. As the cases in Part I show, the termination problem is not particular to licence disputes. There are, however, complexities that are unique to patent licence disputes. This complexity typically arises from the fact that a licence dispute is a meeting of contract law and patent law issues; a very heavyweight combination. This Part II deals with some typical examples of this that have arisen in licence disputes in recent years. It starts with issues arising from the construction of royalty provisions: what technology is being licensed (and how does this affect royalty stacking provisions)? What patents are being licensed? And, when is the royalty payable? The article also examines the jurisdictional complications that can arise by reference to the ‘Celltech saga’.
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