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It is common for patent license agreements and settlement agreements to include so called no-challenge clauses, in which parties agree not to attack the validity of the other s patent. However, the enforceability of such clauses has been questioned.
In
Loops LLC v Maxill Inc., 2020 ONSC 5438, the Ontario Superior Court enforced a no-challenge clause in a Canadian settlement agreement, in the face of ongoing litigation in the United States. The Court granted an injunction prohibiting Maxill Inc. (Maxill Canada) from attacking the validity of Loops L.L.C. and Loops Flexbrush L.L.C. s (Loops) patent in proceedings in the United States.