Opinion ID: 766560
Heading Depth: 3
Heading Rank: 2

Heading: The Implied License

Text: 28 Augustine also argues to this court that by dismissing its post-settlement infringement claims against Progressive, the district court granted Progressive an implied license for infringing activities occurring after the date of the Settlement Agreement. We first note that the district court did not base its grant of summary judgment on the finding of an implied license. Rather, the decision was based on the unambiguous release of future claims contained in the Settlement Agreement. 29 Second, we have held that the argument of implied license is a defense to a patent infringement allegation. See Met-Coil Sys. Corp. v. Korners Unlimited, Inc., 803 F.2d 684, 687, 231 USPQ 474, 476 (Fed. Cir. 1986). Augustine's application of that argument in this case would turn the law of implied licenses from a defense to an offense. We are not willing to construe the law in such a manner today. 30 Even if we were to review whether there was an implied license, given our de novo review, we find Augustine's argument as to the express license contained in the Settlement Agreement unpersuasive. It does not necessarily follow that simply because there was an express license for in substance repetitions of pre-settlement statements made after the Settlement Agreement, that the finding of an implied license is precluded. The case law that Augustine cites to support this proposition is inapposite here. First, in Met-Coil, there was no express license at issue. In Mahurkar v. C.R. Bard, Inc., No. 92-C-4803, 1993 WL 259446 (N.D. Ill. July 6, 1993), the express license that did exist specifically addressed the alleged infringement activity that gave rise to the cause of action. In the case before us, the express license granted by Augustine did not relate to the alleged infringement action. Rather, it granted Progressive a license relating to the unfair competition claims alleged in the first suit, which produced the Settlement Agreement.