Also known as field of use. Generally, a restriction in a patent license that limits the scope of the licensed patent rights to a defined area or application. For example, a licensor might grant one licensee rights under the patent solely to manufacture and sell a particular product and grant a second licensee the right to manufacture and sell a different product. Alternatively, a licensor may limit the license grant by technical application or commercial market definition.

Instead of or in addition to specifying an allowed field of use, a license might expressly prohibit a licensee from practicing the licensed patent in a particular field of use.

For more information on patent license agreements, see Practice Note, Patent License Agreements.