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Lost Sales: Competitive Effects

Lost Sales: Competitive Effects

  • Section 102(a) (20) defines “contractual use restriction” as “an enforceable restriction created by contract which concerns the use or disclosure of, or access to licensed information or informational rights, including a limitation on scope or manner of use.”

  • Section 307(b) states that “If a license expressly limits use of the information or informational rights, use in any other manner is a breach of contract.”

  • These two provisions allow companies to prohibit:

    • Criticism of their mass-market products
    • Reverse engineering of their mass-market products.

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