Patent licensing,
made simple.
Modulus operates a structured patent licensing program with documented coverage, category reservation, and controlled patent disclosure.
The legal mechanism is conventional. We streamlined the process by standardizing terms, preparing counsel-ready diligence materials, and offering fast review for approved companies.
The legal foundation.
The program operates under standard U.S. patent law and commercial licensing practice. No novel legal theory is required. Counsel reviews the same core issues as any patent license: authority to license, grant scope, covered products, term, confidentiality, marking language, representations, disclaimers, and dispute resolution.
Approved applicants and counsel receive the standard agreement and diligence materials under NDA. Most initial reviews are completed quickly once the application, coverage, and disclosure process are complete.
35 U.S.C. § 154: Patent grant
The patent right to exclude is the foundation of any patent license. Modulus patents are issued, maintained, and licensed within the scope defined by the agreement.
35 U.S.C. § 261: Ownership and licensing
Patents are personal property and may be assigned or licensed. Modulus Global, Inc. licenses the portfolio through rights granted by the applicable patent-owning entities, with the chain of authority documented in the diligence materials.
35 U.S.C. § 271: Infringement framework
A patent license authorizes activity that would otherwise fall within the patent owner's exclusionary rights. The Modulus license grants approved licensees rights for the covered product and approved category described in the agreement.
35 U.S.C. § 287: Marking
The agreement includes approved marking and marketing language for licensed products. Licensees may use only the approved language and only for covered products.
35 U.S.C. § 292: False marking
The marketing-language schedule is designed to avoid false marking by limiting patent-backed statements to accurate descriptions of the licensed status and covered product.
The subscription model, pricing structure, and category reservation are commercial terms layered on top of a conventional patent-license framework.
The standard agreement.
The standard agreement is available for counsel review under NDA. It covers:
License grant, covered product, and category reservation
Approved patent-backed marketing language
Licensee representations, confidentiality, and marking obligations
Modulus authority to license and portfolio-management rights
Pricing, renewal, cancellation, and termination terms
Acquisition-transfer mechanics for qualifying transactions
Confidential handling of patent identifiers and diligence materials
Disclaimers, limitations, and dispute-resolution framework
The agreement is designed to make review fast through defined scope, standardized terms, controlled disclosure, and clear exhibits for coverage, pricing, approved language, and patent identifiers.
The sample agreement is provided under NDA. Submit a brief request and our team will deliver the agreement to your counsel.
The diligence pack.
For approved licensees, investors, acquirers, and counsel, Modulus provides a complete diligence pack under NDA.
The pack includes:
Patent identifiers, application numbers, and publication numbers
Prosecution histories
Claim coverage analysis mapping the approved product to licensed claims
Chain-of-title documentation
AcclaimIP P-Score and supporting analytics
PCT examination findings
Third-party citation evidence from companies including Microsoft, Salesforce, Oracle, JPMorgan Chase, and others
Authority-to-license documentation
The diligence pack is delivered directly to counsel or approved diligence parties under strict NDA.
Independent legal review.
Modulus has received outside review from patent licensing counsel familiar with commercial patent-license structures. The feedback has confirmed that the program is built on standard U.S. patent law and conventional licensing mechanics, with subscription billing and category reservation handled as commercial terms.
Counsel FAQs
About the Program
Is this a real patent license?
Yes. The license is executed under standard U.S. patent law (35 U.S.C. § 261) and grants approved licensees the right to practice the licensed patents for the approved product within the category reservation defined by the agreement. The license is enforceable as a commercial contract and as a grant of patent rights.
Why are patent identifiers not published?
Patent identifiers are confidential. They are disclosed under NDA to approved licensees and their counsel during the application and diligence process. This is standard practice in commercial patent licensing and protects the portfolio, Modulus, and all licensees from unnecessary public exposure.
Is Modulus a patent assertion entity?
No. Modulus is an operating AI company that uses, maintains, and expands its own patent portfolio. Modulus does not run mass demand-letter campaigns or pursue companies that decline to license. The licensing program is a commercial channel for companies that want documented patent coverage and a reserved category position.
License Terms
What is the license's geographic scope?
The license grants rights under issued U.S. patents and pending international filings in jurisdictions where Modulus holds patent rights, including the EPO, China, Japan, Canada, and India. Specific jurisdictional coverage is set forth in the agreement and confirmed during the diligence process.
Is the license exclusive?
Each approved license includes an exclusive category reservation unique to the licensee's approved product. Once a license is active, direct competitors cannot obtain the same patent position for the same application. Category reservations are limited and assigned through a conflict-checked application process.
What is the license's term and how does it renew?
The license is structured as a monthly subscription with automatic renewal subject to continued payment. The licensee may cancel as specified in the agreement. The license remains in effect for as long as the licensee maintains the subscription and complies with the agreement.
What are the licensee's obligations under the agreement?
Payment of subscription fees, compliance with the approved marketing-language schedule, confidentiality of patent identifiers and diligence materials, accurate application information, and notification of certain corporate events such as acquisition or change of control as specified in the agreement.
Are there any audit rights or reporting requirements?
There are no royalty audits, sales reporting, or revenue-share calculations. Fees are flat subscription amounts based on the licensee's tier. The agreement does include a tier-verification right exercised on reasonable notice to confirm that licensee information used to establish the tier remains accurate. Beyond that, there is no ongoing reporting obligation other than the corporate-event notifications.
What are the licensee's enforcement rights?
None. Modulus centrally manages portfolio strategy and enforcement decisions. Licensees do not have standing to enforce the licensed patents against third parties and cannot compel Modulus to take enforcement action.
Can the agreement be assigned to a parent or affiliate?
The agreement includes standard provisions for assignment to affiliates, subsidiaries, and successors in interest. Assignment to unrelated third parties requires Modulus's consent, not unreasonably withheld. The acquisition-transfer mechanic addresses the most common scenario.
Can the license be transferred on acquisition?
Yes, for the acquired product line, subject to a joinder by the acquirer and the standard transfer mechanics in the agreement. The license continues for the covered product without renegotiation.
What happens if the licensee's product changes?
The license covers the approved product and approved category. If the product evolves in ways that fall outside the original scope, the licensee should contact Modulus to confirm continued coverage or update the license.
Can the licensee sublicense to its own customers?
Standard licenses do not include downstream sublicensing rights. Customer sublicense rights for defensive purposes can be included in custom enterprise licenses and are individually negotiated.
Diligence and Patents
What if a licensed patent is invalidated?
If a licensed patent is invalidated by final, non-appealable determination, the license terminates with respect to that patent as set forth in the agreement.
What are Modulus's representations and warranties?
Modulus represents that the licensed patents are held within the Modulus group of companies (Modulus, Modulus Holdings, LLC, Modulus AI, Inc., Modulus Global, Inc., and Modulus Financial Engineering, Inc.), that Modulus Global, Inc. has authority to license the patents, and that the patents are in force and properly maintained. Modulus does not warrant patent validity (no patent owner does) and the agreement contains standard disclaimers.
Does the license include indemnification?
The licensee indemnifies Modulus and the patent-owning entities for the licensee's use of the licensed patents and related conduct. Modulus does not indemnify the licensee against third-party patent claims unrelated to the licensed patents, which is standard in commercial patent licensing.
What happens if the licensee challenges the patents?
The agreement treats validity challenges by a licensee as a commercial condition of the license. If a licensee initiates or funds a challenge, Modulus may terminate the license and the related category reservation and may apply the commercial consequences set forth in the agreement. The licensee is not legally barred from bringing a challenge where permitted by law; the commercial relationship simply does not continue.
What if a licensed patent is reexamined or amended?
If a licensed patent undergoes reexamination, reissue, or amendment, the license adjusts to cover the patent as amended. Modulus handles prosecution and post-grant proceedings.
How do the licensed patents relate to other patents in the AI space?
The licensed patents have been cited as prior art in subsequent filings by major operating companies including Microsoft, Salesforce, Oracle, JPMorgan Chase, and others. The patents have been examined for novelty and inventiveness under U.S. and international standards. Citation evidence, examination history, and analytics are included in the diligence pack.
Modulus Structure
What is the relationship between the Modulus entities?
Modulus, Modulus Holdings, LLC, Modulus AI, Inc., Modulus Global, Inc., and Modulus Financial Engineering, Inc. hold and license patents within the Modulus group. Modulus Global, Inc. is the authorized licensor of record. The inter-company licensing structure is documented and available for diligence review under NDA.
What if Modulus changes its commercial program over time?
An executed license is governed by its terms. Modulus may evolve its commercial program prospectively, but active licenses continue under the terms in effect at signing, subject to the agreement's modification, renewal, and termination provisions.
Dispute Resolution and Operations
How are disputes resolved?
The agreement specifies a dispute-resolution framework including good-faith negotiation, mediation, and binding arbitration before any court action. Jurisdiction, choice of law, class-action waiver, and venue are set forth in the agreement.
What is Modulus's response time for counsel inquiries?
Counsel inquiries are addressed promptly once the application is approved and the appropriate NDA is in place. Direct counsel-to-counsel calls and time-sensitive matters can be accommodated. Contact us.