§907 Limitation on Exclusive Rights: Innocent Infringement

Summary

Protects buyers who unknowingly buy semiconductor chips that use a protected mask work. If a buyer had no notice of that protection, they are not liable for importing or selling the units they bought before learning about the protection. After getting notice, they must pay only a reasonable royalty for each unit they import or sell. A court decides the royalty unless the parties settle by negotiation, mediation, or binding arbitration. The same protection or royalty rule applies to people who buy the chips from the innocent buyer, and it covers only units bought before the buyer had notice.