Licensing Procedures & Policies 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 Licensing Procedures & Policies flashcards as text
When computing a reasonable royalty for patent infringement damages, the Georgia-Pacific factors are used to:
Answer: Reconstruct a hypothetical negotiation to set a reasonable royalty rate
The Georgia-Pacific factors provide a multi-factor framework courts use to reconstruct what royalty a willing licensor and licensee would have agreed to in a hypothetical pre-infringement negotiation.
A 'running royalty' differs from a 'paid-up license' in that running royalties:
Answer: Accrue on an ongoing basis tied to actual sales or usage
Running royalties continue throughout the license term as a percentage of ongoing sales, while a paid-up license is a one-time payment granting perpetual use rights.
Under FRAND (Fair, Reasonable, and Non-Discriminatory) licensing obligations, a patent owner must:
Answer: License standard-essential patents on terms that are fair, reasonable, and non-discriminatory
FRAND commitments arise when patents are declared essential to a standard, requiring the holder to license on non-discriminatory terms to all implementers who request a license.
Which clause in a license agreement typically specifies the procedure for resolving disputes without litigation?
Answer: Dispute resolution / arbitration clause
Dispute resolution clauses specify the agreed mechanism — such as mediation, arbitration, or expert determination — for settling controversies outside of court.
In a licensing context, 'technology transfer' most accurately refers to:
Answer: The process of transferring knowledge, skills, and IP rights enabling a licensee to use and build upon a technology
Technology transfer encompasses conveying not just IP rights but also the know-how, training, and technical support enabling the licensee to practically implement the technology.
A 'step-down royalty' structure in a license agreement means that:
Answer: Royalty rates decrease after sales reach certain volume thresholds
Step-down royalties reduce the royalty rate once cumulative or annual sales exceed predefined thresholds, rewarding licensees for high-volume commercialization.
What is the primary reason a licensor might insist on a 'performance clause' or minimum royalty guarantee?
Answer: To ensure the licensee actively commercializes the licensed technology rather than shelving it
Performance clauses, including minimum royalty guarantees, protect licensors from licensees who might acquire rights only to prevent competitors from using the technology without intent to commercialize.