When a patent dispute arises, it can be a costly and lengthy process to resolve it in court. Many times, parties will choose to settle the dispute outside of court through a patent settlement agreement. This agreement outlines the terms and conditions agreed upon by both parties to resolve the dispute. If you are looking for a patent settlement agreement sample, read on to learn more about what it should include.

The Basics of a Patent Settlement Agreement

A patent settlement agreement is a legal document that outlines the terms and conditions agreed upon by both parties to resolve a patent dispute. The agreement should be detailed and comprehensive, covering all aspects related to the dispute. This includes the specific patents in question, the parties involved, any monetary compensation, and any restrictions or limitations on the use of the patents by either party.

The agreement should also include provisions related to confidentiality and non-disclosure. This is particularly important if either party is disclosing sensitive information during the settlement negotiations. The agreement should outline how this information will be treated and protected by both parties.

Sample Clauses in a Patent Settlement Agreement

One important clause in a patent settlement agreement is the release clause. This clause states that both parties agree to release each other from any further claims related to the patents in question. This is a critical provision as it prevents either party from bringing additional claims related to the same dispute.

Another important clause is the licensing provision. This clause outlines the terms and conditions of any licensing agreements related to the patents in question. If one party is granted a license to use the other party’s patents, the agreement should clearly outline the scope and duration of the license.

The agreement may also include a provision related to damages. This provision outlines any monetary compensation to be paid to one party by the other as part of the settlement. If either party has suffered financial damage as a result of the dispute, this provision should detail how that damage will be mitigated through the settlement.

Finally, the agreement may include a dispute resolution provision. This clause outlines how any future disputes related to the patents in question will be resolved. It may require mediation or arbitration before any parties can bring a claim to court.


A patent settlement agreement can be a complex document that requires careful consideration and drafting. If you are looking for a sample agreement, it’s important to remember that each dispute is unique and requires a tailored solution. However, the clauses mentioned above are commonly found in patent settlement agreements and provide a good starting point for drafting your own agreement. If you need assistance, consult with an experienced attorney who can help you navigate the process with confidence.