Question 1

In the U.S. a transfer of copyright ownership is not valid unless it is in writing and signed by the owner.

Accepted Answer

According to the U.S. Copyright Office, a transfer of copyright ownership must be in writing and signed by the owner or authorized agent in order to be valid.

Question 2

The laws concerning international property protection are fairly harmonized throughout the world.

Accepted Answer

The laws concerning international property protection can vary greatly from country to country, and there is no universal agreement or harmonization of these laws. Some countries may have stronger protections and enforcement mechanisms for intellectual property, while others may have weaker or less enforceable laws. Additionally, international treaties and agreements may provide some level of standardization or guidelines for intellectual property protection, but these are not universally adopted or followed by all countries.

Question 3

In Russia, the failure to register a licensing agreement with the government invalidates the agreement.

Accepted Answer

In Russia, licensing agreements must be registered with the government's patent agency in order to be valid. Failure to register the agreement renders it invalid.

Question 4

EU law is generally silent on licensing agreements that include territorial restrictions on where a licensee may sell product.

Accepted Answer

EU law has specific rules on territorial restrictions in licensing agreements under Article 4 of the Block Exemption Regulation (EU) No 316/2014. Such restrictions may be considered anti-competitive and thus unlawful if they exceed certain thresholds or if there is no justification for them.

Question 5

An improvement to a technology made by a licensee automatically becomes the property of the licensor.

Accepted Answer

Improvements made by a licensee to a technology do not automatically become the property of the licensor unless specifically agreed upon in the licensing agreement.

Question 6

The aim of technology transfer laws is to protect and promote competition.

Accepted Answer

The aim of technology transfer laws is to protect intellectual property rights and promote innovation, not necessarily competition. However, competition can be a byproduct of effective technology transfer laws.

Question 7

The courts in developing countries will generally disregard choice of law clauses in licensing agreements that favor the law of the licensor.

Accepted Answer

Courts in developing countries are often reluctant to enforce choice of law clauses that favor the law of the licensor, as they may view such clauses as an attempt to circumvent local laws and regulations.

Question 8

A 'most favored licensee clause' requires the licensor to provide the same royalty rate and terms to the licensee that he subsequently gives to another competitive licensee.

Accepted Answer

A most favored licensee clause ensures that all licensees are treated equally and provided with the same royalty rate and terms, regardless of whether they are competitors or not.

Question 9

A third party that provides a service that allows a licensee to avoid restrictions found in its patent grant (license) is guilty of "induced infringement."

Accepted Answer

According to the doctrine of "induced infringement," a third party that provides a service that allows a licensee to avoid restrictions in its patent grant (license) can be held liable for inducing infringement. This is because they are contributing to the infringement by encouraging or facilitating the licensee to engage in infringing activity.

Question 10

Non-reciprocal grant back clauses are generally enforced in United States courts unless they are held to violate the antitrust laws.

Accepted Answer

This is accurate according to the general practice of non-reciprocal grant back clauses being enforceable in US courts unless they violate antitrust laws. However, it's important to note that each case is evaluated on its individual circumstances and context.

Question 11

Royalties based upon increases in the licensee's overall sales are known as Momentum royalties.

Accepted Answer

Momentum royalties are based upon increases in the licensee's overall sales.

Question 12

Host country anti-trust, technology transfer, and consumer protection laws can usually be avoided through contractual agreement.

Accepted Answer

Host country anti-trust, technology transfer, and consumer protection laws cannot be completely avoided through contractual agreement. These laws are designed to protect consumers and prevent anti-competitive practices, and host countries may enforce them regardless of any contractual agreements made with foreign businesses. It is important for businesses operating in foreign countries to comply with local laws and regulations in order to avoid legal penalties and damage to their reputation.

Question 13

The U.S. Supreme Court in Brulotte v. Thys Co. held that an agreement that extends royalties beyond the life of a patent is enforceable.

Accepted Answer

The U.S. Supreme Court in Brulotte v. Thys Co. held that an agreement that extends royalties beyond the life of a patent is unenforceable as a violation of antitrust laws.

Question 14

In the U.S., if a licensing agreement is silent as to duration, then the courts will usually imply that it was intended to grant rights for the entire statutory term of the patent, copyright, or trademark.

Accepted Answer

If the licensing agreement is silent as to duration, the courts typically imply that it was intended to grant rights for the entire statutory term of the patent, copyright, or trademark.

Question 15

In determining a royalty rate, the use of gross sales is generally favorable to the licensee, while net sales favor the licensor.

Accepted Answer

In determining a royalty rate, the use of net sales is generally favorable to the licensee as it deducts expenses from the total revenue, resulting in a lower royalty payment. Gross sales, on the other hand, are the total revenue generated without any deductions, which means a higher royalty payment for the licensor.

Question 16

In the United Sates, a licensee has the right to sue third parties for patent infringement pertaining to the licensed property.

Accepted Answer

In the United States, only the patent owner or an exclusive licensee with sufficient rights can sue for patent infringement, not a non-exclusive licensee.

Question 17

No-challenge clauses are generally not valid under U.S. law.

Accepted Answer

No-challenge clauses can be valid under U.S. law if they meet certain requirements, but they are generally not automatically enforceable. The validity of a specific no-challenge clause would depend on the specific facts and circumstances of the case.

Question 18

In most cases, the licensing of information is governed by the UCC.

Accepted Answer

The Uniform Commercial Code (UCC) mainly governs commercial transactions and contracts for the sale of goods. The licensing of information is typically governed by intellectual property laws such as copyright, patent, and trademark laws.

Question 19

Computer information transactions are governed by UCITA.

Accepted Answer

UCITA stands for the Uniform Computer Information Transactions Act, which is a model law that governs transactions involving the licensing of computer information, including software and data. It has been enacted in several states in the United States.

Question 20

Under UCITA, a contract can be formed between a computer and a person, but not by two computers.

Accepted Answer

Under UCITA, a contract can indeed be formed between two computers, recognizing electronic agents' ability to establish contracts without human intervention.

Quiz 15: Law of Intellectual Property Rights Licensing