The opinion of AG Wathelet in the case C-567/14 Genentech vs. Hoechst, Sanofi Aventis is admittedly a couple of months old but does not seem to have been covered on IPKat before. While it concerns EU competition law, it is an area of competition law that is ignored by IP lawyers at their peril.
Under the agreement, Genentech was liable to pay a one-off fee of about EUR 10,000, an annual fixed fee of EUR 10,000 and a 0.5% running royalty on all sales of "finished products". Genentech paid the one-off fee and and fixed annual fees, but never paid any running royalty. In June 2008, Hoechst enquired about payment of the running royalty, upon which Genentech terminated the license agreement in August 2008, taking effect in October 2008 (the short two months notice period is important).
|Let sleeping cats lie [(c) merwells]|
- the licensee is able to terminate the licence agreement by giving reasonable notice (in concreto two months),
- is able to challenge the validity or infringement of the patents,
- and retains his freedom of action after termination.