Legal Question in Business Law in New York

Licensing Agreement

I entered into an agreement with a manufacturer to manufacture a product for me. I went out and got all of the distributors to buy the products.

I had a separate non-exclusive license with another company to produce the product I am discussing. After years of work and research to take the product to where it is today, such as marketing, software design, adding to the design of the product etc., the manufacturer went to my license holder and obtained their own license. They didn't do this immediately they waited until there was only two years left on the patent and used me until that time. There are other issues behind this story.

Do I have any rights regarding my customers they took over? I obtained the customers and they took them over and eliminated my royalties completely.

I am talking 15 years of hard work that I put into this product.

Thanks


Asked on 7/01/04, 8:25 pm

4 Answers from Attorneys

Stephen Loeb Law Office of Stephen R. Loeb

Re: Licensing Agreement

I would need to know, especially relating to any type of formal agreement you may have had with either company. I would be happy to discuss this matter with you in detail, you may have legal remedies for your damages if they can be verified.

Should you like to discuss this or any other legal matter, you can call my office to schedule an appointment for a consultation or in the alternative, I can be reached for on-phone low-cost legal consultation at 1-800-275-5336 x0233699.

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Answered on 7/02/04, 8:57 am
William Frenkel Frenkel Sukhman LLP

Re: Licensing Agreement

If I understand you correctly, your licensee issued a sub-license to another manufacturer. The question to ask there is whether the license agreement allowed sub-licensing and contained any other restrictions that may be of help to you. What is not clear from your posting, though, is how the license to manufacture relates to the right to distribute, etc. in the case of each manufacturer you dealt with -- the core of your complaint. Generally, your license and any other agreements relating to the product have to be reviewed to determine your contractual rights, if any. Short of that, depending on the facts of your case, you may have tort-based claims against your new competitors.

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Answered on 7/02/04, 9:04 am
Walter LeVine Walter D. LeVine, Esq.

Re: Licensing Agreement

I concur with the other writers. The facts presented are insufficient to provide you with an answer unless and until the documents you signed can be reviewed. On the surface it appears that all you gave the first company was a limited, non-exclusive right to manufacture on your behalf, and nothing else. Thus, going beyond the terms of your contract seems to allow you to sue them, both to stop distribution and for damages. I am not sure what your contract did or did not allow and until I see a copy I cannot give you a proper answer. Also, I do not understand the difference between manufacture and produce, as you describe the 2 contracts. If customers were taken, in violation of any anti-competition language in your contract, you have a contract claim. You may also have a claim under common law for this as well. It is also unclear as to what the license agreement allowed. Did it allow for sub-licensing? Do you get royalties regardless of who distributes? I suggest going to an intellectual property attorney for assistance.

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Answered on 7/02/04, 12:01 pm
Asi Kirmayer Kirmayer PLLC

Re: Licensing Agreement

You should have an attorney review all the documents related to this.

If the licensing documents were properly drafted , you should be protected and depending on the amount of money involved, you may or may not want to pursue legal action. If the documents were not properly drafted, your position would be much more difficult.

You may reach me at (212) 695-6400 if you would like to discuss this further.

Best of luck,

Asi Kirmayer

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Answered on 7/02/04, 3:33 pm


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