| name | field-of-use-restriction |
| title | Field of Use Restriction Clause |
| description | Drafts field-of-use restriction clauses for IP licensing agreements. Covers grant language, prohibited activities, audit rights, breach remedies, and dispute resolution. Use when drafting IP license restrictions, patent field-of-use limitations, technology licensing clauses, or licensee scope provisions. |
| author | CaseMark |
| author_url | https://github.com/CaseMark/skills/tree/main/skills/legal/field-of-use-restriction |
| license | Apache-2.0 |
| version | 0.1.0 |
| execution_mode | open |
| jurisdiction | general |
| practice | ip |
| language | en |
| tags | ["agreement","drafting","transactional"] |
Field of Use Restriction Clause
Draft an enforceable field-of-use restriction clause that limits licensee exploitation to a defined scope while preserving licensor rights.
Prerequisites
Gather before drafting:
- Licensed IP — patent numbers, technology descriptions, product specs, trade secret scope
- Existing agreements — prior licenses, third-party rights, commitments affecting grantable scope
- Business parameters — field boundaries (industry, geography, customer type, application method), exclusivity, sublicensing intent
- Party information — licensor/licensee details, affiliates, related entities
Workflow
1. Define Key Terms
| Term | Drafting Notes |
|---|
| Licensed Technology | Draw from patent claims, technical specs, product docs |
| Field of Use | Delineate by industry sector, geographic market, customer type, application method, or combination |
| Permitted Applications | Affirmative list of authorized uses |
| Restricted Fields | Explicit exclusions from the grant |
| Improvements / Derivatives | Whether modifications remain subject to restriction |
Cross-reference definitions with industry-standard terminology. Pull technical language from uploaded patent claims and specs.
2. Draft Grant of License
Grant clause must address:
- Exclusivity status within the permitted field
- Sublicensing rights and conditions
- Specific patent numbers; whether continuations/improvements included
- Know-how/trade secret scope and disclosure restrictions
- Term, renewal conditions, milestone-based field expansion
- Prior licenses or third-party rights carve-outs
Reserve all rights not expressly granted.
3. Specify Restrictions & Prohibited Activities
| Prohibition | Language Target |
|---|
| Direct use outside field | "shall not, directly or indirectly, use Licensed Technology for any purpose outside the Field of Use" |
| Sublicense/assignment to restricted fields | Prohibit transfer of rights into restricted areas |
| Circumvention via affiliates/third parties |
