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The owner of entertainment intellectual property often faces concerns about maximizing licensing revenues while addressing the restrictions of federal and state laws that create those rights. Because a given IP right may involve federal law ' through patents, trademarks or copyrights ' and state law ' through associated trade secrets or confidential information ' licensing of that IP mix often presents a challenge to maximizing an entertainment IP owner's potential revenue generation.
One approach to solving the problem has been the use of a hybrid license. However, hybrid licenses have had limited success. In Brulotte v. Thys, 379 U.S. 29 (1964), the U.S. Supreme Court held that royalties associated with a patent must stop with a patent's enforceable life. The Court recently heard oral argument in Kimble v. Marvel Enterprises, 13-720, a case involving a Spider-Man role-playing toy in which the court has been asked to overturn Brulotte.
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