CLP International Licensing Flashcards
6 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 6 CLP International Licensing flashcards as text
What is a compulsory license in international IP law?
Answer: A government-authorized license allowing a third party to use a patent without the owner's consent, typically for public health reasons
A compulsory license is issued by a government to allow production of a patented item (e.g., medicine) without the patent holder's permission, permitted under TRIPS in specific circumstances.
In international licensing, 'choice of law' clause designates:
Answer: Which country's laws govern the interpretation and enforcement of the license agreement
A choice-of-law clause specifies the governing jurisdiction's laws, which is critical in cross-border deals where countries have different contract and IP rules.
Transfer pricing rules in international licensing require that intercompany royalties between related entities be set at:
Answer: Arm's-length market rates as if the parties were unrelated
Tax authorities in most countries require that royalties between affiliated companies reflect arm's-length pricing to prevent profit shifting to low-tax jurisdictions.
The European Union's exhaustion doctrine in trademark and patent law holds that:
Answer: Once a rights holder sells a product within the EEA, IP rights in that product are exhausted and cannot block further resale within the EEA
EU regional exhaustion means that after a first authorized sale anywhere in the European Economic Area, the IP holder cannot use IP rights to prevent resale within the EEA.
Why are arbitration clauses particularly important in international license agreements?
Answer: They provide a neutral, enforceable dispute resolution mechanism across borders without relying on any single country's court system
International arbitration awards are enforceable in over 170 countries under the New York Convention, making them far more practical than foreign court judgments for cross-border disputes.
Export control laws such as the US EAR (Export Administration Regulations) can affect technology licensing by:
Answer: Requiring licenses or approvals before transferring certain controlled technologies to foreign licensees
The EAR classifies dual-use technologies by ECCN and may require a US government export license before the technology can be licensed or disclosed to foreign persons.