Summary

Zenith Radio Corporation v. Hazeltine Research Inc…

He cannot insist upon paying on use alone and perhaps, as things turn out, pay absolutely nothing because he finds he can produce without using the patent. If the risks of infringement are real and he would avoid them, he must anticipate some minimum charge for the license-enough to insure the patentee against loss in negotiating and administering his monopoly, even if in fact the patent is not used at all.
Source: Wikisource

Zenith Radio Corporation v. Hazeltine Research Inc…

In such event, not only would royalties be collected on unpatented merchandise, but the obligation to pay for nonuse would clearly have its source in the leverage of the patent.
We also think patent misuse inheres in a patentee's insistence on a percentage-of-sales royalty, regardless of use, and his rejection of licensee proposals to pay only for actual use. Unquestionably, a licensee must pay if he uses the patent.
Source: Wikisource

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