Federal Circuit Rules Exclusive Licensee Retains Standing to Sue Alone Despite Shifting to Enforcement
The CAFC reversed the district court's dismissal, holding that TexasLDPC's license agreement did not terminate when it shifted to enforcement and that it possessed all substantial rights to sue without joining Texas A&M University under Rule 19.
WISECODE Take
Many business owners mistakenly believe that obtaining an exclusive license guarantees the right to sue alone, and that if the licensor refuses to join, the lawsuit will fail. In TEXASLDPC v. BROADCOM (Case No. 2025-1074) decided on September 14, 2026, the Federal Circuit reversed the dismissal, ruling that shifting to enforcement did not terminate the license, and that the licensee held 'all substantial rights' without needing to join the patent owner, Texas A&M. This protects Taiwanese companies licensing from academic institutions, and our Patent Portfolio Diagnostics service can help review such enforcement clauses early on. First, define litigation enforcement as a business operation in contracts. Second, secure unrestricted enforcement rights even if the licensor retains research rights.
Original sources
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