Module 4 · Chapter 9

Money, Warranties and Liability

A licence given as part of a sale charges almost nothing and promises little. What matters most is the cap on liability, and the few claims that fall outside it.

≈ 8 min read 8-question test

In this chapter

  • Why the Licence charges no royalty
  • What the owner of the IP promises, and what it leaves out
  • Which claims the cap on liability does not reach

9.1Money and risk in one paragraph

In many licences the licensee pays a royalty on each product it sells. This Licence charges none, because Tregarth paid for the factory in the share price. For the same reason, Kelderwick IP promises little about what it licenses, and each side's liability has a ceiling. A few claims have no ceiling at all, and those are the ones to watch.

Key point

The Licence is part of the sale, not a separate purchase. That is why it is free, and why the owner of the IP promises so little about it.

Also in this chapter

  1. Why the Licence charges no royalty
  2. What Kelderwick IP promises
  3. The cap on liability, and what it leaves out
  4. Infringers and the no-challenge promise
  5. Your job

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