Field of use restriction
By Gareth HoyleLast updated How we research
A field of use restriction limits a license to a defined application, industry or product type, leaving the licensor free to license other fields.
A field of use restriction is a license term that limits the licensee's rights to a defined field, such as a type of product, an industry or a kind of model. The licensor keeps the right to use the same asset, or license it to others, outside that field.
Are field of use restrictions lawful?
Field of use restrictions are generally lawful in the US. The DOJ and FTC Antitrust Guidelines for the Licensing of Intellectual Property, issued January 12, 2017, state that "field-of-use, territorial, and other limitations on intellectual property licenses may serve procompetitive ends". The agencies examine restrictions that harm competition, such as a ban on using rival products.
How do field of use restrictions work in AI data licenses?
In AI data licenses, field of use restrictions let a seller grant exclusivity in one area while licensing elsewhere. Examples include:
- Legal research models only, with all other uses free to license
- Evaluation only, with no training rights
- Speech recognition but not voice generation
Define the field precisely, because a vague field invites disputes. See exclusive license and exclusive vs non-exclusive data licenses.