[1] Usually, this type of agreement happens between two parties in order to avoid litigation or to settle an infringement dispute.
Thus by cross licensing, each party maintains their freedom to bring the commercial product to market.
Parties that enter into cross-licensing agreements must be careful not to violate antitrust laws and regulations.
The economics literature has shown that firms with high capital intensities are more likely to strike a cross-licensing deal.
A cross-license for computer software may involve a combination of patent, copyright, and trademark licensing.