There is no doubt that intellectual property is a valuable asset. Parties all around the world are taking an arrangement to utilize 3rd party’s intellectual properties. Sometimes it could be a license agreement or sometimes a transfer.
In any case, it is very important to verify the validity of the underlying intellectual property before entering into a contract. As for a patent, first, it looks relatively simple to clear the validity, compared to other intellectual property such as a copyright. A patent is being registered with the Korean Intellectual Property Office. The registration, however, does not guaranty the validity of the patent at issue. It can be challenged later by 3rd party and could be nullified by the court’s decision.
Then what happens if the patent becomes void after the license agreement is entered into? (more…)