| name | field-of-use-clause |
| title | Field of Use Restriction Clause |
| description | Drafts field-of-use restriction clauses for U.S. IP licensing agreements, limiting licensee exploitation to a defined permitted field by industry, application, geography, or customer type. Use when drafting or negotiating permitted use clauses, field-of-use limitations, or technology licensing scope provisions. |
| author | CaseMark |
| author_url | https://github.com/CaseMark/skills/tree/main/skills/legal/field-of-use-clause |
| license | Apache-2.0 |
| version | 0.1.0 |
| execution_mode | open |
| jurisdiction | us |
| practice | ip |
| language | en |
| tags | ["agreement","drafting","transactional"] |
Field of Use Restriction Clause
Drafts an enforceable clause limiting a licensee's exploitation of licensed IP to a defined permitted field.
Prerequisites
Gather before drafting:
- Licensed IP — patent numbers/claims, know-how description, or trade secret scope
- Permitted field — industry, application, customer type, geography, or combination
- Restricted fields — express list of excluded uses/markets (infer if not provided)
- License structure — exclusive vs. non-exclusive; sublicense rights; term
- Party information — licensor, licensee, existing licenses or third-party constraints
Clause Structure
1. Definitions
| Term | Guidance |
|---|
| Licensed Technology | Patent numbers, claim references, or technical spec language verbatim |
| Field of Use | Delineate by: industry sector, therapeutic area, application method, customer class, geography |
| Permitted Applications | Affirmative list of approved uses |
| Restricted Fields | Exclusive list of prohibited uses; use "including but not limited to" |
| Licensed Products/Services | Tie to Permitted Applications; state whether improvements are included |
Sector-specific delineation:
| Sector | Typical Method |
|---|
| Pharma/biotech | Therapeutic indication, species, delivery route |
| Software | Deployment type, end-user category, geography |
| Manufacturing | Product category, volume thresholds, end-use application |
| Semiconductors | Device class, performance tier, market segment |
2. Grant of License
Licensor hereby grants to Licensee a [exclusive/non-exclusive], non-transferable license
under [Patent Nos. ___ / the Licensed Technology] solely within the Field of Use to:
(a) make, have made, use, sell, offer for sale, and import Licensed Products; and
(b) [practice the Licensed Methods] [use the Licensed Know-How],
subject in each case to the terms and conditions of this Agreement. All rights not
expressly granted are reserved by Licensor.
