The question at issue was whether a verbal preparatory agreement between the parties on a patented invention had given rise to a valid license agreement and ensuing entitlement to damages.

The Supreme Court affirmed an earlier Court of Appeals decision, for the most part, by finding that a (patent) license agreement must be in written form in order to have legal effect and that the claimed consequential / compensatory damages cannot be justified by law, with the exception of incidental damages for costs actually incurred in contemplation of the license agreement.

A full summary of this case has been published on Kluwer IP Law.


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