Implied License
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An implied license is an unwritten
license A license (American English) or licence (Commonwealth English) is an official permission or permit to do, use, or own something (as well as the document of that permission or permit). A license is granted by a party (licensor) to another part ...
which permits a party (the licensee) to do something that would normally require the express permission of another party (the licensor). Implied licenses may arise by
operation of law The phrase "by operation of law" is a legal term that indicates that a right or liability has been created for a party, irrespective of the intent of that party, because it is dictated by existing legal principles. For example, if a person dies wi ...
from actions by the licensor which lead the licensee to believe that it has the necessary permission. Implied licenses often arise where the licensee has purchased a physical embodiment of some
intellectual property Intellectual property (IP) is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The best-known types are patents, co ...
belonging to the licensor, or has paid for its creation, but has not obtained permission to use the intellectual property.


Examples

* A person who purchases a record album does not explicitly purchase a right to ''perform'' that album by playing it on a record player, but this right is implied. * In patent law, if an employee invents something while on company time, the employer receives an implied license to use the invention, even if no
contract A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more parties. A contract typically involves consent to transfer of goods, services, money, or promise to transfer any of thos ...
exists to assign rights to the employer. This is sometimes referred to as shop right. In copyright law, the work for hire provision would grant the employer copyright to the work, provided the invention is within the employee's job description. * In 2008, the Ninth US Circuit held that a non-exclusive license to use copyrighted material can be granted by implied license, but not an exclusive license. Further, if the creator has received consideration for the work, the non-exclusive grant is irrevocable. * In ''Drabble (Harold) Ltd v. Hycolite Manufacturing Co.'' (44 TLR 264 (1928)), an advertising agency sued a customer and a newspaper for copyright infringement for printing an advertisement that the customer had paid the agency to prepare. The English
Chancery Division The High Court of Justice in London, known properly as His Majesty's High Court of Justice in England, together with the Court of Appeal and the Crown Court, are the Senior Courts of England and Wales. Its name is abbreviated as EWHC (England ...
held that the conduct of the parties implied a licence to use the copyrighted work. * Where a
copyright A copyright is a type of intellectual property that gives its owner the exclusive legal right to copy, distribute, adapt, display, and perform a creative work, usually for a limited time. The creative work may be in a literary, artistic, ...
ed work has been commissioned, the law in the United Kingdom is that the creator retains rights in the commissioned work. Unauthorised use of the work would therefore infringe the creator's copyright. Nevertheless, the commissioner may have an implied license to use the commissioned work, although only for the particular purpose under which the commission was originally agreed. * In its 2006 decision on '' Field v. Google, Inc.'' (CV-S-04-0413-RCJ-LRL), the US District Court for the District of Nevada ruled that web caching does not constitute a copyright violation, because of ''fair use'' and an ''implied license''. In that context ''implied license'' refers to a ''de facto'' standard: if the copyright holder does not use any no-archive tags and robot exclusion standards to prevent caching. * Holocaust victims who created and concealed materials documenting war atrocities gave ''implied consent'' for the distribution of such copyrighted material, which often amounts to fulfillment of their explicit wishes. In such cases following the letter of US copyright law, which protects unpublished anonymous works for 120 years since the year of their creation would go directly against their intentions.


Types

In the United States, implied licenses are usually considered to be of two kinds: either they reflect the intention of the parties, which is inferred from a fact-specific inquiry into the surrounding circumstances, or else they are constructive agreements, in which case the intention of the parties is likely to be immaterial. In reality, there is a continuum between these kinds of implied license and it may be difficult to determine whether the license or contract in question is one which the law implies, irrespective of any protests by the unwilling licensor, or instead one inferred from the whole pattern of factual circumstances including the evidence of intent. In England, there is more of a tendency to regard all implied licenses as matters of fact and intent, while what would be a license implied by law in the US is treated under some other branch of substantive law such as the doctrine of non-derogation from grants. In both countries, the exhaustion doctrine has the effect of creating an implied license to use a product sold under the "authority" of the patentee. It is controversial whether and to what extent contractual expedients can successfully limit the scope of such implied licenses.


Express license

The opposite of an implied license is an ''express license'', which, for some forms of intellectual property, must be in writing. Oral exclusive licenses were permitted, however, under US copyright law before 1978. Oral nonexclusive copyright licenses remain valid under US law. Patent licenses may be oral. Licenses under the Semiconductor Chip Protection Act must be in writing. Section 903(b)
of the Act, 17 U.S.C. ยง 903(b), provides: "The owner of the exclusive rights in a mask work may transfer all of those rights, or license all or less than all of those rights, by any written instrument signed by such owner or a duly authorized agent of the owner."


References

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Further reading

* Kenneth L. Port et al., ''Licensing Intellectual Property In The Information Age'' (2005), p. 338-355. Legal doctrines and principles Licenses