Practice Test Geeks(CLP) Certified Licensing Professional Practice Test
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Ethical Practices in Licensing Flashcards

7 cards from real CLP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Ethical Practices in Licensing flashcards as text

  1. A licensing professional drafts a term sheet that includes a grant-back clause requiring the licensee to assign all improvements back to the licensor. Which ethical concern does this most directly raise?

    Answer: Potential restraint on the licensee's innovation incentive

    Mandatory assignment grant-backs can stifle licensee innovation and raise fairness concerns, as the licensee bears development risk without retaining the fruits of its effort.

  2. Ethical 'good faith' in licensing negotiations is BEST demonstrated by:

    Answer: Disclosing known material defects in the licensed IP before signing

    Good faith requires that material information affecting the value or validity of the licensed IP be disclosed before the parties commit to the deal.

  3. Under U.S. antitrust principles, which licensing practice is MOST likely to raise ethical and legal concerns regarding market competition?

    Answer: Requiring licensees to purchase unpatented components exclusively from the licensor

    Tying arrangements that require licensees to buy unpatented goods exclusively from the licensor can restrain competition and may violate Section 1 of the Sherman Act.

  4. A CLP professional is engaged as a neutral mediator in a licensing dispute. One party offers the mediator a success fee contingent on a specific outcome. The ethical response is to:

    Answer: Decline and inform both parties of the offer

    A contingent fee destroys mediator neutrality; declining and disclosing the offer to both parties protects the integrity of the mediation process.

  5. Which scenario BEST illustrates a breach of confidentiality by a licensing professional?

    Answer: Disclosing a licensee's proprietary sales data to a competitor during due diligence

    Sharing a licensee's proprietary sales data with a competitor violates the duty of confidentiality and could constitute trade secret misappropriation.

  6. A licensor knowingly licenses patents that are unenforceable due to inequitable conduct during prosecution. This behavior is ethically problematic primarily because:

    Answer: It constitutes misrepresentation of the IP's legal validity

    Licensing unenforceable patents as if they were valid constitutes material misrepresentation, which is a fundamental breach of honest dealing.

  7. The principle of 'informed consent' in licensing ethics most directly requires that:

    Answer: A licensee understand the scope, limitations, and risks of the rights being granted

    Informed consent means the licensee has enough information about scope, limitations, and risks to make a truly voluntary and knowledgeable agreement.