Infineon
posted on
Mar 21, 2011 02:38PM
8.1. In case any product or any part thereof is held by a court of competent jurisdiction to constitute an infringement of any third party’s patent, copyright, trademark, trade name, or unauthorised trade secret use ("IP Rights"), which is in existence at the time of delivery of the product, the Seller shall, at its own expense and at its option, either procure for Buyer, the right to continue to use the product, or, if applicable, replace the product with a non-infringing product of equivalent function and performance, or modify the product so that it become non-infringing without detracting from function or performance. The obligations of Seller apply under the precondition that (a) if none of the foregoing is economically feasible, Seller may take back the products delivered and to refund the purchase price paid without incurring any other liability to Buyer, and (b) Buyer shall inform Seller without delay in writing of any claims for infringement of IP Rights, does not accept on its own any such claims and conducts any disputes, including settlements out of court, only in agreement with Seller. For the avoidance of doubt, in such event, the Seller shall be given full conduct of the matter and shall take such action as may be necessary or expedient in the name of the Buyer.
8.2. Notwithstanding the foregoing, any liability of Seller shall be excluded:
(i) if the infringement of IP Rights is not caused by the product itself, for example if such infringement results from the application of the product (including any application-specific circuitry implemented in the products), regardless of whether Seller was aware of or had been notified of such use; or
(ii) if the infringement of IP Rights results from specifications or instructions given by Buyer or the fact that the products have been changed by Buyer or are being used in conjunction with products not delivered by Seller, which convert otherwise non-infringing products to infringing products; or
(iii) if the IP Rights are essential for the compliance with industry standards. For the purposes of this Order, essential as applied to IP Rights shall mean that it is not possible on technical grounds (where no commercially reasonable alternative exists), taking into account normal technical practice and the state of the art generally available at the time of standardization, that the products and the technology incorporated therein comply with the relevant industry standards without infringing such IP Right; or
(iii) if infringement of IP Rights claim is made after 24 months starting on the date the risk of loss or damage has passed to Buyer according to Section 6; or
(iv) if infringement pertains to or based on the Moore Microprocessor Patent Portfolio (including without limitation the US Patent US 5,440,749 or European Patent EP 0 870 226 or any patents claiming priority of one of these patents).