Why Patents in Licensing Deals Now Affect System Deployment

Many companies only realize there is a patent risk after their system has already been implemented. In today’s technology collaborations — particularly in SaaS deployment or platform integration — patent exposure often does not come from the software being used, but from the system methods running behind it. This is where patents in licensing deals become relevant in commercial agreements.

A recent decision by the United States Court of Appeals for the Federal Circuit
(Case No. 2024-1170, decided December 9, 2025) shows that certain patent claims related to user authentication methods in distributed data processing systems (single sign-on/SSO) were upheld as valid following an inter partes review (IPR) proceeding before the Patent Trial and Appeal Board (PTAB).

The Risk Lies in How the System Works

The patented method in that case involved:

• the use of single sign-on

• receiving a user identifier from one system

• creating a user account in another system

• to allow access to protected resources

within a federated computing environment.

Authentication models like this are widely implemented in:

• enterprise SaaS integrations

• fintech onboarding systems

• cloud-based service platforms

• API-driven collaboration tools

Implementing such methods without proper licensing may still create patent infringement risk — even where no third-party software has been copied.

Implications for Licensing Deals

In many technology licensing agreements, the scope is typically limited to:

• software usage

• system integration

• data processing

However, the license may not always extend to:

✔ implementation rights
✔ patented backend methods
✔ authentication workflows

As a result, a system may be contractually authorized for use, but still expose the company to patent infringement risk if the implemented method has not been licensed.

In the decision above, the PTAB invalidated some patent claims through IPR under 35 U.S.C. §§ 102–103, while other claims remain enforceable and may:

• restrict deployment

• require additional licensing

• or lead to disputes after implementation.

What Should Be Reviewed Before Deployment?

Before entering into:

• SaaS deployment agreements

• platform integration arrangements

• white-label technology deals

it is important to review whether:

• the system uses a patented method

• the license already includes implementation rights

• or the company needs an additional licensing agreement

AMR provides services including:

• patent licensing risk assessment

• technology agreement review

• implementation rights analysis

• IP structuring in commercial contracts

to help ensure that system deployment in business collaborations aligns with applicable patents in licensing deals.