Federal Circuit Patent Watch: How can an irrevocable license be revoked?
Dyk, J. Reversing grant of motion to dismiss, due to lack of standing, and remanding. The district court found that the patent owner had granted an irrevocable, non-exclusive license to a third party and therefore lacked standing to pursue the present case. The patent owner argued that even though the prior license was irrevocable, it had nonetheless been terminated by a Termination Agreement and that, therefore, the patent owner had exclusive rights to enforce the patents and standing to pursue the present case. The Court agreed with patent owner finding that while an irrevocable license could not be terminated unilaterally by the grantor, such a license could be terminated by mutual agreement between the parties.