Licensor’s Obligation to Maintain Rights

The maintenance of intellectual property rights often requires that certain measures are taken. For instance, the validity of a patent depends on the payment of the annual maintenance fee. Copyrights, which do not require any particular measures, can be mentioned as an exception.

It is primarily the licensor’s responsibility to maintain the licensed rights. This includes, for example, renewal of applications and, where required, payment of maintenance fees. If the licensor fails to fulfill such duties, it may be regarded as breach of contract.

The license agreement may also provide, that the licensee is responsible for maintenance of the licensed rights.

The licensor should attempt to retain a right to cease the maintenance in certain situations, or after a certain period of time. The licensee may in such case protect its rights by demanding the inclusion of a clause in the agreement which would give the licensee the right to obtain such rights, to the extent the licensor no longer accepts responsibility for maintenance thereof.