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Daisy Chained Licenses
Posted by Anonymous . updated on 2/26/2009
This is a question that I piggybacked onto another post. Bad idea. It's a question concerning what I call second-order, (daisy-chained) licenses.
I'll boil it down to a hypo to avoid disclosing specifics (also the tech is hard to explain.) Suppose "A" holds a patent for the base material silicon. "B" pays for a license from "A" to manufacture a silicon integrated circuit. "C" buys a silicon chip from "B" and uses it to build a computer. "A" then goes after "C" for a licensing fee for use of the base material silicon. But all "C" did was buy the chip from "B", so I don't get it. "B" already payed "A" for rights to use silicon. How far can "A" string this along? "D" then buys the computer from "C" to build a control system, etc. Where does it end?
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