CHAPTER 19
Protecting IP Rights: Settlement Memorandum WHETHER
P R O C E E D I N G S A G A I N S T A S U S P E C T E D I N F R I N G E M E N T have commenced or are merely threatened, the parties involved would be wise to try to settle the dispute amicably. If legal proceedings are brought, the parties will incur substantial expenses for attorney fees, court costs, investigative and discovery costs, and other litigation related expenses. They are also likely to suffer harm to their reputation among consumers and industry traders, loss of sales, loss of production, and potentially loss of the business. Settlement negotiations can take time, but they are usually accomplished in private without harmful publicity. The following Memorandum is not a full-fledged Settlement Agreement. It is merely the first agreement put into writing by two parties who have negotiated the basic terms of a settlement. By preparing a Memorandum, the parties can concentrate on the most significant, core provisions of the settlement. Once the basic settlement is agreed, the relationship of the parties will be determined and they can proceed with conducting their business while they wait for the attorneys to prepare and finalize a complete Settlement Agreement with all the nuances and subtleties of a detailed contract.
LEGAL
Settlement Memorandum THIS SETTLEMENT MEMORANDUM SHALL TAKE EFFECT AS OF [ date ] BETWEEN [ name and address ] (FIRST PARTY) AND [ name and address ] (SECOND PARTY). THE PARTIES ACKNOWLEDGE THE FOLLOWING:
a. The First Party has rights to Intellectual Property as stated in this Memorandum and is seeking to protect those rights. b. The Second Party has used and/or registered intellectual property similar to the Intellectual Property claimed by the First Party, but the Second Party is not admitting to any illegal or infringing use of said Property by signing this Memorandum or otherwise by entering into settlement with the First Party. ACCORDINGLY, THE PARTIES AGREE TO THE FOLLOWING TERMS AND CONDITIONS: 1 . I N T E L L E C T U A L P R O P E R T Y THE FIRST PARTY OWNS ALL RIGHTS IN THE FOLLOWING INTELLECTUAL PROPERTY: [ list particulars , INCLUDING NAME OR TITLE, REGISTRATION NUMBERS, AND OTHER IDENTIFYING INFORMATION]. 2 . N O R I G H T S THE SECOND PARTY CLAIMS NO RIGHTS WHATSOEVER IN ANY OF THE INTELLECTUAL PROPERTY OWNED BY THE FIRST PARTY, NOR IN ANY IDENTICAL OR SIMILAR INTELLECTUAL PROPERTY.
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