Cross-Licensing Agreement Law and Legal Definition
When used in the context of patents, a cross-licensing agreement is an agreement pursuant to which two or more license holders exchange licenses so that each party may benefit from the other’s patent. Generally, the patents that each party owns cover different essential aspects of a given commercial product. Therefore, by cross licensing, each party maintains their freedom to bring the commercial product to market. Pursuant to cross licensing, neither party pays monetary royalties to the other party.
