§907 Limitation on exclusive rights: innocent infringement

Summary

Protects a buyer who unknowingly imports or sells semiconductor chips that copy a protected chip design. If the buyer had no idea the chip’s protected design (called a mask work) existed, they are not liable for units they imported or sold before they learned about the protection. After they learn, they must pay a reasonable royalty for each unit they import or sell. A court decides the royalty unless the parties agree by negotiation, mediation, or binding arbitration. The same protection and royalty limit also applies to anyone who later buys those chips from the innocent buyer. These rules only cover units bought before the buyer learned about the protection.