Cross-licence

A cross-license (or cross-licence) is a license agreement whereby two (or more) rights holders (e.g. a patent holder, trademark holder or copyright holder) grant each other licenses to their respective assets. Each party can thus exploit the protected technologies, creations or signs of the other, according to the agreed conditions (duration, territory, royalties). Cross-licenses are often entered into to:

1. Avoid costly litigation: rather than suing each other for infringement, companies choose to share their rights. Unlock innovation: particularly in sectors where there is a high degree of patent overlap (patent thicket), each party can exploit the technology necessary for its product or service.
2. Débloquer l’innovation : notamment dans des secteurs où les brevets se recouvrent fortement (patent thicket), chaque partie peut exploiter la technologie nécessaire à son produit ou service.
3. Achieve reciprocity : : la valeur de la licence octroyée par l’un est compensée par la licence reçue de l’autre, réduisant ou annulant la somme éventuellement due.

This cross-licensing system is frequently seen in technology-intensive fields (electronics, telecommunications, pharmaceuticals), where the need to access several patents or areas of expertise is crucial for innovating and marketing competitive products.