15.20 Derivative Liability-Inducing Infringement is a type of intellectual property infringement in which an individual or company is held liable for the actions of another person or company. This type of liability is usually established through a legal relationship or contract between the two parties. It can also arise when one party has knowledge of the other’s infringing activities and takes no action to stop it. There are three types of 15.20 Derivative Liability-Inducing Infringement: contributory infringement, vicarious infringement, and inducement infringement. Contributory infringement occurs when a party actively assists in or encourages the infringing activity of another. Vicarious infringement occurs when a party has the right and ability to control the infringing activity of another, and profits from it. Inducement infringement occurs when a party induces another to commit an infringing act.