Licence Agreement Termination Notice

It is difficult to see how poor performance is relevant, if there is a right of termination for convenience. The existence of this right is determined on the basis of the intentions of the parties at the conclusion of the contract and not on the basis of the circumstances at the time of termination. When a licensee wishes to terminate the license agreement due to poor performance, it must ensure that the licensing agreement meets clear performance requirements and an explicit right of termination for non-compliance with these requirements. Mevon did the opposite by agreeing to remove the minimum licence fee for the transfer of the licence to Ward. The judge resigned for three months. That seemed to count, at least in part, on Ward`s poor performance. Ward submitted that the notice period should be 12 months, given that most orders were long-delayed and that one of the Ward Group`s businesses was entirely licensed. However, the judge judged because of the low income that was generated, these are only formal arguments, and he did not give them much weight. In general, the parties intend to maintain the IP licences in force until all intellectual property rights granted expire.

In ward Equipment Limited/Preston`s recent decision, the New Zealand High Court granted the licensee the right to terminate a patent licence within a reasonable period of time, while the patents were still in effect. The letter must be distributed to the licensee using the method specified in the license (or one of the methods indicated in the license). There is often a notice clause that determines where and how notices should be distributed. Depending on the project, manual or recorded delivery is probably the safest. If the parties intend to maintain the licence in effect until all patents (or other intellectual property rights) expire, we suggest that it did not have a fixed term because Mevon had only a right to terminate Ward`s infringement, while Ward also had the right to terminate the patents when the patents expired.

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