This actually does happen and it’s so frustrating when it happens to YOUR client.
You’ve negotiated a commercial contract for your client.
Let’s say your client is a Licensee or a Buyer, the product includes IP rights or is embedded in the goods.
You’ve agreed to limit the amount paid to your client if the LICENSOR or SELLER breaches the contract, the Limitation of Liability clause, the clause contains a cap.
The total amount your client can recover from the other party is $5k, the value of the contract.
Your client phones you and tells you that the product/services they are using INFRINGES third party IP Rights 😳.
Your client is now being sued by other third parties for IP infringement.
The other party to the contract have told your client that they will not pay a cent more than $5k. The liability cap.
Watch my video on IGTV to learn how to carve out EXCEPTIONS to the Limitation of Liability clause, this would include liability for infringement, confidentiality breaches etc.
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DISCLAIMER- This video is provided for educational purposes only and does not replace professional legal opinion. No representation is made to the accuracy, correctness or completeness of the information contained in this video.