nonmetered license

Patents. An agreement to allow a patent’s use in exchange for a flat percentage of sales, regardless of how much the patent is actually used.

• The Supreme Court rejected a nonmetered license as patent misuse, saying the buyer has a right to insist on paying only for actual use. Zenith Radio Co. v. Hazeltine Research, Inc., 395 U.S. 100, 89 S.Ct. 1562 (1969). See PATENT-MISUSE DOCTRINE. [Cases: Patents 218(5). C.J.S. Patents § 371.]


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