How can a Canadian licensor try to prevent a licensee from voiding its contract and using what it has learned to create a competitor?
A)by using lawyers from both countries to write the licensing agreement
B)by insisting that all licensees have a published code of ethics
C)by having the licensee pay a fee for the use of the manufacturing process, trademark, patent, or other proprietary knowledge
D)by locally registering patents and trademarks to the Canadian firm-not the licensee

Question

Quizplus · Accepted Answer

By locally registering patents and trademarks to the Canadian firm, the licensor can prevent the licensee from using the proprietary knowledge to create a competitor. This also ensures that the licensor maintains ownership and control of their intellectual property. A licensing agreement can also include clauses on non-disclosure and non-compete to further prevent the licensee from using the knowledge gained to create a competitor.

How Can a Canadian Licensor Try to Prevent a Licensee