Implied License Law and Legal Definition

Implied license is a royalty-free license. This kind of licenses arise form a land owner’s conduct in relation to another person’s use of the property even if the owner has not expressly permitted to the property’s use.

Under Patent law, the circumstances surrounding the conduct give rise to an affirmative grant of permission to infringe a patent’s claims. For example, the conduct of a patentee who encourages the manufacture to infringe products may constitute an implied license to use the patent. When a patentee authorizes the sale or express grant of a license to a buyer an implied license may arise. If the buyer resells the license to a third party, the third party becomes the patentee's implied licensee.