Sample Patent Licensing Offer Letters
Sample 1: Soft Licensing Approach
[Patent Owner]
[Address]
[Email / Phone]
[Date]
[Potential Licensee]
[Address]
Attn: VP Business Development / Licensing
Re: Patent Licensing Opportunity – [Technology Area]
Dear [Recipient]:
I am writing to introduce [Patent Owner] and explore a potential licensing relationship with [Potential Licensee].
ABOUT [PATENT OWNER]
[Patent Owner] is a [description of company] that has developed innovative [technology description]. We hold a portfolio of [X] issued U.S. patents covering [technology area], including:
• U.S. Patent No. X,XXX,XXX – [Brief title/description]
• U.S. Patent No. Y,YYY,YYY – [Brief title/description]
These patents represent significant R&D investment and cover fundamental aspects of [technology].
POTENTIAL OVERLAP
We have observed that [Potential Licensee]'s [product line] may incorporate technology covered by our patents. Rather than approach this as an adversarial matter, we believe there is an opportunity for a mutually beneficial licensing arrangement.
LICENSING PROGRAM
[Patent Owner] has established a licensing program for our patent portfolio. We currently have [X] licensees in the [industry], including [notable names if public]. Our licensing terms are commercially reasonable and designed to allow licensees to continue their business operations while fairly compensating [Patent Owner] for use of our innovations.
PROPOSED NEXT STEPS
We would welcome the opportunity to:
1. Present our patent portfolio and technology in more detail
2. Discuss [Potential Licensee]'s products and technology roadmap (under NDA)
3. Explore licensing terms that would work for both parties
Would you be available for an introductory call in the next few weeks? I am happy to work around your schedule.
We look forward to the possibility of working with [Potential Licensee].
Best regards,
[Name]
[Title]
[Contact Information]
Sample 2: Post-Demand Licensing Transition
[Patent Owner / Law Firm]
[Address]
[Date]
[Defendant]
[Address]
Attn: General Counsel
Re: U.S. Patent No. [X,XXX,XXX] – Licensing Proposal
Dear Counsel:
Thank you for your response to our demand letter dated [Date]. We appreciate [Defendant]'s willingness to engage in discussions.
As discussed, [Patent Owner] is open to resolving this matter through a license agreement rather than litigation. Below is a framework for discussion:
PROPOSED LICENSE TERMS
Licensed Patents:
- U.S. Patent No. X,XXX,XXX
- [Any related patents]
Scope:
- Non-exclusive, worldwide license
- Covering [Defendant]'s [Product Line] products
Past Infringement Settlement:
- One-time payment of $[Amount] covering sales through [Date]
- Based on [X] estimated units sold at [X]% royalty
Future Royalty:
- [X]% of net sales of Licensed Products
- Quarterly reporting and payment
- Annual minimum of $[Amount]
Term:
- Effective upon execution
- Continues until expiration of Licensed Patents
Additional Terms:
- Standard reporting and audit provisions
- Patent marking on Licensed Products
- Mutual releases of past claims
DISCUSSION TIMELINE
We propose the following timeline:
Week 1-2: Technical meeting to discuss patents and products
Week 3-4: Exchange of licensing proposals
Week 5-6: Term sheet negotiation
Week 7-8: Definitive agreement drafting
During these negotiations, [Patent Owner] will not file suit provided [Defendant] engages in good faith. However, this standstill is conditioned on [Defendant] not taking positions inconsistent with good-faith negotiation.
Please confirm [Defendant]'s interest in proceeding on this basis. We are available to begin discussions at your convenience.
Sincerely,
[Attorney Name]
Counsel for [Patent Owner]
Sample 3: Portfolio Licensing Offer
[Patent Holding Company / Licensor]
[Address]
[Date]
[Target Company]
[Address]
Attn: Chief Intellectual Property Officer
Re: Portfolio License Opportunity – [Technology Area]
Dear [Recipient]:
[Licensor] holds one of the foundational patent portfolios in [technology area], consisting of [X] U.S. patents and [X] foreign counterparts. Many of the leading companies in [industry] have taken licenses to this portfolio.
PORTFOLIO OVERVIEW
Our portfolio includes key patents covering:
• [Technology Category 1] – [X] patents
• [Technology Category 2] – [X] patents
• [Technology Category 3] – [X] patents
Representative patents include U.S. Patent Nos. [list several with brief descriptions]. A full portfolio summary is available under NDA.
INDUSTRY LICENSING
We have licensed this portfolio to [X] companies representing approximately [X]% of the [industry] market, including [notable licensees if public]. Our licensing program is well-established and our terms have been accepted as reasonable by major industry participants.
PRODUCT COVERAGE
Based on publicly available information, we believe [Target Company]'s [product lines] may be covered by patents in our portfolio. We have prepared a preliminary claim chart mapping [specific product] to our patents, which we would be pleased to share in a technical meeting.
LICENSE PROPOSAL
We propose a portfolio license on the following general terms:
• Non-exclusive, worldwide license to our [technology area] portfolio
• Running royalty of [X]% of net sales of Covered Products
• Alternatively, fully paid-up license for $[Amount]
• License-back of [Target Company]'s patents in [field] for cross-license value
• Most-favored-licensee terms
PROCESS
We suggest:
1. Introductory call to discuss portfolio and [Target Company]'s interest
2. Technical presentation on claim coverage (under NDA)
3. Exchange of licensing proposals
4. Negotiation of definitive license agreement
[Licensor] is committed to fair and efficient licensing. We do not seek to disrupt [Target Company]'s business and believe a license is in both parties' interests.
Please contact me to schedule an introductory discussion.
Regards,
[Name]
[Title]
[Licensor]
Sample 4: Settlement and License Offer (Litigation Context)
[Plaintiff's Counsel]
[Law Firm]
[Address]
[Date]
[Defendant's Counsel]
[Address]
Re: [Patent Owner] v. [Defendant], Case No. [XX-cv-XXXX] – Settlement Proposal
Dear Counsel:
On behalf of [Patent Owner], I am authorized to propose the following settlement terms to resolve the above-captioned patent infringement litigation.
SETTLEMENT PROPOSAL
1. MONETARY TERMS
a) Past Damages Payment: $[Amount] payable within 30 days of settlement
b) Future Royalty: [X]% of net sales of [Accused Products] through
expiration of the asserted patents
OR
c) Fully Paid-Up License: $[Lump Sum Amount] covering past and all
future sales
2. LICENSE GRANT
[Patent Owner] shall grant [Defendant] a non-exclusive, non-transferable
license under the patents-in-suit to make, use, sell, offer for sale,
and import [Accused Products].
3. SCOPE
- Licensed Patents: [List patent numbers]
- Licensed Products: [Accused Products] and substantially similar products
- Territory: Worldwide (where Patent Owner has corresponding rights)
- Term: Life of Licensed Patents
4. RELEASES
- Mutual release of all claims arising from the litigation
- Covenant not to sue for infringement of Licensed Patents by Licensed Products
- Release of attorneys' fees, costs, enhanced damages claims
5. DISMISSAL
Upon execution of settlement agreement and receipt of initial payment,
parties shall jointly file stipulated dismissal with prejudice.
6. CONFIDENTIALITY
Terms of settlement shall remain confidential except as required by
law or court order.
RESPONSE DEADLINE
This offer remains open until [Date – 14 days]. If we do not receive acceptance or substantive counter-proposal, [Patent Owner] will proceed with litigation.
We believe this proposal represents a fair resolution that avoids further litigation expense for both parties. Please advise if [Defendant] is interested in discussing these terms or proposing alternatives.
Sincerely,
[Attorney Name]
Counsel for [Patent Owner]