Small Brothers Ltd.patented an invention here in Canada in 2003 for which there is great public demand.
i.If Small Bros.is not able to come anywhere near supplying the demand,MegaCorp could apply for a compulsory licence so that it can manufacture the product
ii.If MegaCorp.is granted a compulsory licence,it does not have to pay Small Bros.royalties as a normal licensee must do.
iii.If MegaCorp.is granted a compulsory licence,it must pay a reasonable royalty fee to Small Bros
iv.Small Bros.might lose its patent altogether if it cannot meet the demand.
v.If MegaCorp.had independently come up with the same invention,but applied for a patent after Small Bros.applied,it could also be granted a patent.

Question

Quizplus · Accepted Answer

Option i is correct as MegaCorp could apply for a compulsory license if Small Bros. cannot meet the demand. 
Option iii is correct as if MegaCorp is granted a compulsory license, they must pay a reasonable royalty fee to Small Bros. 
Option iv is correct as Small Bros. may lose their patent altogether if they cannot meet the demand. 
Option ii is incorrect as even if a compulsory license is granted, MegaCorp still needs to pay royalties to Small Bros. Hence, option v is also incorrect as it states that MegaCorp would not need to pay royalties if they had come up with the same invention independently. Therefore, the best choice is D as it includes all the correct options.