No-Challenge Clause

Provision in licensing agreement that prohibits the licensee from challenging the validity of the underlying intellectual property right, usually a patent. No-challenge clauses for patents have often been held illegal or void as against public policy. One major exception to such prohibition, illegality, or void-ness usually arises when the no-challenge clause is part of a license granted as part of a settlement of litigation with respect to the non-challengeable patent.

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