Example (1): Defense of patent and Indemnity
(1) Licensee shall promptly Inform Licensor of any suspected Infringement of any Patent granted on the said application and Licensor shall prosecute, but only after full consultation with Licensee from which Licensor is satisfied that actual Infringement is taking place. If desired by Licensor, Licensee shall reasonably assist Licensor In such defense of Patent, but such assistance will not include participation in the payment of any action legal charges. The proceeds from any judgement or settlement made by Licensor In any such action brought by it shall be used to reimburse Licensee for all expenses Incurred by it in assisting Licensor in prosecuting the action and the remainder of the proceeds shall be retained by and be entirely for the account of Licensor.
(2) Licensee shall promptly inform Licensor of any claims or proceedings made or brought against Licensee in the Territory by a third party which allege that Licensee has infringed the intellectual property rights belonging to that third party. In such event the parties hereto shall false and co-operate with each other to ensure that so far as possible any steps taken by either of them in relation to any claims or proceedings are in the best interest of both Licensee and Licensor. Licensor shall, at its own expense, defend such action or suit. If desired by Licensor, Licensee shall reasonably assist in defense of such suit or action, but such assistance will not include payment of any legal charges.
(3) Neither party shall settle or compromise any suit or action without the consent of the other if the settlement or compromise imposes upon the other Injunctive relief or money damages.
Example (2): Infringement suits
(1) In the event that any legal proceedings are taken by any third party against any possible infringements which may result from Licensee’s operation in the use of the Patents, Trademarks or Technical licensed to Licensee hereunder, Licensee shall inform Licensor of such fact without delay and Licensor shall take any suitable actions for defending or meeting the legal proceedings or settling the infringement with the third party at its own expense. Determination by Licensor as regards what action is to be taken shall not unreasonably be withheld. The defense of such legal proceedings shall be conducted solely by Licensor, however, counsel for Licensee may participate In such proceedings at the cost of Licensee. Any damages shall be paid by Licensor.
(2) If no or insufficient action for defending or meeting such legal proceedings or settling the Infringement is taken by Licensor, Licensee may take any necessary and timely actions by itself and Licensor shall pay any damages and/or reasonable expenses accrued to Licensee from such legal proceedings or any reasonable expenses accrued to Licensee from the settlement. Licensee may withhold the payment of the royalties payable thereafter until such damages, costs and/or expenses are disbursed by Licensor.