Simple English definitions for legal terms
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Shelving is when someone has a patent for an invention, but they don't use it or sell it for a certain amount of time. This can be a problem for the person who owns the patent because they might not make any money from it. To prevent this from happening, they can put an antishelving clause in the contract. This means that the person who has the patent has to use it or sell it within a certain amount of time or they might lose the right to use it. This can also apply to trademarks.
Definition: Shelving refers to the failure to begin or the stopping of commercial use of a patent during a specified period, usually the term of the license. It is a problem that usually applies to patented inventions, but licenses for trademarked products may also address shelving. An antishelving clause is a provision in a patent-licensing contract that requires the licensee to put the patented article into commercial use within a specified time and to notify the patentee if the licensee decides to stop selling or manufacturing it.
Examples: A company obtains a license to use a patented technology for a new product. The license agreement includes an antishelving clause that requires the company to begin selling the product within six months of receiving the license. If the company fails to do so, the license may be terminated. Another example is a trademark license that includes a shelving provision, which requires the licensee to continue using the trademark in commerce or risk losing the license.
Explanation: The examples illustrate how shelving and antishelving clauses work in patent and trademark licensing agreements. The purpose of these provisions is to ensure that the licensed product is put into commercial use and not left unused or abandoned. By requiring the licensee to begin selling the product within a specified time, the patentee or trademark owner can protect their intellectual property rights and prevent the licensee from monopolizing the technology or trademark without actually using it in commerce.