The Supreme Court Upholds Prohibition on Charging Royalties After Patent Expiration

Aug 24, 2015

Reading Time : 1 min

By: Chad Everignham

In reaffirming Brulotte and its 50 years of precedent, the Court explained that the Brulotte rule is easy to apply: “A court need only ask whether a licensing agreement provides royalties for post­expiration use of a patent. If not, no problem; if so, no dice.” Although the Brulotte rule may prevent “some parties from entering into deals they desire,” the Court noted that “parties can often find ways around Brulotte, enabling them to achieve those same ends.” For example, “Brulotte allows a licensee to defer payments for pre­expiration use of a patent into the postexpiration period; all the decision bars are royalties for using an invention after it has moved into the public domain.” Likewise, Brulotte permits royalties to “run until the last­running patent covered in the parties’ agreement expires” and “post­expiration royalties are allowable so long as tied to a non­patent right—even when closely related to a patent.” Finally, the court explained that “Brulotte poses no bar to business arrangements other than royalties—all kinds of joint ventures, for example—that enable parties to share the risks and rewards of commercializing an invention.”

Kimble v. Marvel Entertainment LLC, 576 U.S. ­­­­ (2015).

Share This Insight

Categories

Previous Entries

IP Newsflash

February 24, 2026

The Southern District of Florida recently dismissed a complaint without prejudice because the allegations used a form of “shotgun pleading.” The court explained that a shotgun pleading includes those where every count incorporates every preceding paragraph into each cause of action, and that dismissal of such pleadings was required under Eleventh Circuit precedent.

...

Read More

IP Newsflash

February 20, 2026

The Federal Circuit recently addressed whether the PTO must conduct notice‑and‑comment rulemaking before issuing instructions that guide how the Board should exercise discretion at the institution stage of IPRs. The court held that no such rulemaking is required. Instructions to the Board regarding its use of the Director’s delegated discretionary authority not to institute review are merely general statements of policy exempt from notice-and-comment rulemaking.  

...

Read More

IP Newsflash

February 18, 2026

The District Court for the District of Delaware recently invalidated claims directed to a panoramic objective lens for lack of enablement, holding the claims impermissibly recited a single element in means‑plus‑function form. Under § 112, ¶ 6, “[a]n element in a claim for a combination may be expressed as a means or step for performing a specified function….” By its plain terms, the statute permits means‑plus‑function claiming only in the context of a “combination.” In other words, a claim may not consist solely of a single means‑plus‑function element. Claims drafted as a single means are invalid for lack of enablement as a matter of law.

...

Read More

IP Newsflash

February 13, 2026

In an ANDA litigation, the District of Delaware recently denied the defendants’ motion to compel the production of correspondence between the plaintiffs’ testifying expert and a third-party analyst who had performed experiments and provided data used by the testifying expert. The court found that the scope of material sought by the motion was overbroad and disproportionate to the needs of the case.

...

Read More

© 2026 Akin Gump Strauss Hauer & Feld LLP. All rights reserved. Attorney advertising. This document is distributed for informational use only; it does not constitute legal advice and should not be used as such. Prior results do not guarantee a similar outcome. Akin is the practicing name of Akin Gump LLP, a New York limited liability partnership authorized and regulated by the Solicitors Regulation Authority under number 267321. A list of the partners is available for inspection at Eighth Floor, Ten Bishops Square, London E1 6EG. For more information about Akin Gump LLP, Akin Gump Strauss Hauer & Feld LLP and other associated entities under which the Akin Gump network operates worldwide, please see our Legal Notices page.