Legal Question in Intellectual Property in California

Re: Licensing

Immediately. In fact, under the fact pattern you've presented, you may be able to take legal action based on anticipatory repudiation. Anticipatory repudiation means that if someone tells you they are not going to honor a contract, even before the written terms are breached by actions, there has been what amounts to an abandonment of the contract. Their words "anticipate" their actions. If by "refuses to pay" you simply mean that they are behind in payments, you will need to review the contract to determine if there are provisions for a grace period or any other terms that would alter the prior conclusion. Typically, I would anticipate that a licensor would want to continue and protect a licensing arrangement and so the unwritten message of your question is that there is a relationship problem that needs to be put back on track or else your patent needs to be freed up so you can find another path toward profits.

Re: Licensing

Undoubtedly in your next licensing agreement you will add a provision defining exactly how long the licensee has before becoming delinquent. I agree with Ms. Cowin. However, you may wish to review the Uniform Commercial Code for remedies, as there are several approaches you can take regarding your loss if the remedies are not spelled out in the licensing agreement.