Use for match prohibited: Overview, definition, and example
What is use for match prohibited?
"Use for match prohibited" is a contractual restriction that prevents a party from using certain information, resources, or data to create, develop, or compare competing products or services. This clause is often found in agreements related to intellectual property, licensing, and proprietary technology to prevent unfair competition or unauthorized benchmarking.
For example, a software company may include a "use for match prohibited" clause to prevent customers from analyzing its product and using the findings to develop a competing software.
Why is use for match prohibited important?
This clause is essential for protecting proprietary assets and preventing competitors from gaining an unfair advantage. Without it, businesses risk having their products reverse-engineered, benchmarked, or used to develop alternatives that undermine their market position.
For companies entering agreements involving confidential technology, data, or trade secrets, a "use for match prohibited" clause ensures that their resources cannot be exploited for competitive purposes.
Understanding use for match prohibited through an example
Imagine a company licenses its AI-powered financial software to a consulting firm. To protect its technology, the licensing agreement includes a "use for match prohibited" clause. This prevents the consulting firm from using the software’s algorithms or performance metrics to develop a competing product. If the firm later creates a similar AI tool based on insights from the licensed software, they could be in breach of contract.
In another example, a pharmaceutical company shares clinical trial data with a research partner. The contract includes a "use for match prohibited" clause stating that the partner cannot use this data to develop a competing drug. This ensures that the shared information is used only for the agreed purpose and not for competitive research.
An example of a use for match prohibited clause
Here’s how this type of clause might appear in a contract:
“The Recipient agrees that it shall not use any data, materials, or information obtained under this Agreement for the purpose of developing, testing, or benchmarking a competing product or service. Any such use shall be considered a material breach of this Agreement.”
Conclusion
A "use for match prohibited" clause protects businesses from having their proprietary information used against them in competitive markets. By including this clause in contracts, companies can safeguard their intellectual property, prevent unfair competition, and ensure that shared resources are used only as intended.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.