From: tien (Lee Tien)
Date: Fri, 30 Apr 93 17:27:13 PDT
To: Cypherpunks, tcmay@netcom.com
Subject: Re:  I don't take it personally...
Message-ID: <9305010027.AA08692@toad.com>
MIME-Version: 1.0
Content-Type: text/plain


Tim, I'm responding to your question about patents.  I don't know
of any reason why individual licenses to use the public-key patents
in connection with specified authorized programs couldn't be 
granted under U.S. patent law.  In general, a patent holder has
the right to exclude unauthorized persons from making, using, or
selling the patented invention.  A patent holder can grant non-
exclusive licenses to make, use, or sell.  Legally speaking, a
non-exclusive license can be thought of as a promise by the paent
holder not to sue the licensee for acts within the scope of the
license which would otherwise constitute patent infringement, in
return for some kind of consideration.  

The major limits on a valid patent are "patent misuse" (where
the patent holder overreaches) and antitrust (where the patent
holder uses the patent to restrain trade).  

Patent licensing is a pretty flexible mechanism.  I'm no expert,
though, and I've never quite understood exactly what this patent
protects, nor have I seen the actual claims of the issued patent.

Lee