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Rule of Reason (Patents)

Definition

A doctrine used to determine whether conditions upon a patent license or royalty agreement constitute patent misuse. An arrangement fails the rule of reason if the restrictions unreasonably broaden a patent's scope and result in anticompetitive effects that unlawfully restrain competition in a defined market.

Related Rules


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Mallinckrodt, Inc. v. Medipart, Inc.


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U.S. Philips Corp. v. International Trade Commission