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Simple English definitions for legal terms

authorization clause

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A quick definition of authorization clause:

An authorization clause is a part of the Patent Act that says if someone uses or makes something that is protected by a U.S. patent, and they do it on behalf of the U.S. government with the government's permission, then the U.S. is considered the one who broke the patent law, not the person who did the action. If a government contractor or subcontractor does something that breaks a patent law and it is covered by the authorization clause, the only way the patent owner can get compensation is by suing the U.S. in the U.S. Claims Court. The authorization clause is in the second paragraph of 28 USCA § 1498(a) and is also called the consent clause.

A more thorough explanation:

An authorization clause is a provision in the Patent Act that states that if a person uses or manufactures something that is protected by a valid U.S. patent, acts on behalf of the U.S. government, and acts with the government's authorization or consent, the U.S. government, not the person, is considered the infringing user or manufacturer.

For example, if a government contractor or subcontractor working for the U.S. government uses or manufactures something that is protected by a valid U.S. patent, and the act is covered by the authorization or consent clause, the patent owner's only recourse is to sue the U.S. government in the U.S. Claims Court for compensation.

The authorization or consent clause is found in the second paragraph of 28 USCA § 1498(a).

authority by estoppel | authorized capital

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