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Simple English definitions for legal terms
field-of-use restriction
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A quick definition of field-of-use restriction:
A field-of-use restriction is a rule that limits how someone can use something they have been given permission to use. This rule might say that they can only use it for a certain type of product or service, or only in a specific area. It is often used in agreements about intellectual property, which means things like inventions, ideas, or creative works that someone has made and wants to protect.
A more thorough explanation:
A field-of-use restriction is a provision in a license agreement that limits the use of the licensed property to a specific product or service market or a designated geographical area. This means that the licensee is only allowed to use the licensed property in the way that is specified in the agreement.
For example, a software company may license its software to a company that manufactures medical devices, but only for use in those devices. The license agreement may also restrict the use of the software to a specific geographical area, such as the United States.
Another example is a patent holder who licenses their patent to a company that produces a specific type of product, such as a car manufacturer. The license agreement may restrict the use of the patent to only that type of product and not allow the licensee to use the patent in other products.
These examples illustrate how a field-of-use restriction can limit the use of intellectual property to a specific market or area, which can be beneficial for both the licensor and licensee. The licensor can ensure that their property is being used in a way that aligns with their business goals, while the licensee can benefit from using the licensed property in a specific market or area without worrying about competition from other licensees.