posted Feb 15 2018
Interesting read about licensing IP
But a recent Second Circuit decision should change that thinking. Crye Precision LLC v. Duro Textiles, 689 Fed.Appx. 104 (2d Cir. 2017), extends the common-law restrictions on non-compete provisions to a new area: intellectual property licenses. Crye appears to break new ground in applying this law to restrictions in an intellectual property license. Counsel who draft licensing agreements need to consider whether restrictions often found in such agreements would be enforceable under the non-compete principles.
Crye Precision LLC is the exclusive licensee for four patented camouflage patterns. One of them was developed for the U.S. Army in the early 2000s. Crye dubbed it the MULTICAM pattern, and licensed it to Duro Textiles, a printer, for products sold commercially, as well as to the Army. In 2010, the Army selected MULTICAM as the standard issue camouflage pattern for soldiers deployed in Afghanistan.
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