Licensing Law & Regulations Flashcards

Under U.S. antitrust law, which agency has primary jurisdiction over licensing practices that may constitute anticompetitive conduct?

Answer: The Department of Justice (DOJ) Antitrust Division and the Federal Trade Commission (FTC)

The DOJ Antitrust Division and the FTC jointly enforce antitrust laws in the U.S., including scrutinizing anticompetitive licensing practices.

What is 'patent misuse' and how does it affect a licensor's ability to enforce a patent?

Answer: A defense that arises when a patent holder improperly extends the patent's scope through anticompetitive licensing practices, rendering the patent temporarily unenforceable

Patent misuse is an equitable defense that bars enforcement of a patent when the holder has expanded the patent's scope beyond its lawful reach, such as through tying arrangements.

A software company licenses its product under a 'shrink-wrap' license. Which legal issue has historically been most disputed regarding such licenses?

Answer: Whether terms visible only after purchase constitute a binding contract

Courts have long debated whether shrink-wrap terms, revealed only after purchase and opening, form an enforceable contract, with outcomes varying by jurisdiction.

What does FRAND stand for in the context of standard-essential patent (SEP) licensing?

Answer: Fair, Reasonable, And Non-Discriminatory

FRAND (Fair, Reasonable, And Non-Discriminatory) terms are commitments SEP holders make to standards bodies to license their essential patents on such terms.

Which of the following best describes a 'compulsory license' under U.S. copyright law?

Answer: A statutory license that allows certain uses of copyrighted works without the owner's permission in exchange for specified royalties

Compulsory licenses (e.g., for musical compositions under 17 U.S.C. § 115) allow specific uses without owner consent upon payment of statutory royalty rates.

In the context of technology licensing, what is a 'most-favored licensee' (MFL) clause?

Answer: A clause requiring the licensor to give the licensee the same or better terms offered to any future licensee

An MFL clause entitles the licensee to receive terms no less favorable than those granted to any other similarly situated licensee.

Under U.S. law, what is the effect of recording a patent license with the USPTO?

Answer: Recording provides constructive notice to subsequent purchasers and assignees, protecting the licensee's rights

Under 35 U.S.C. § 261, recording a patent license at the USPTO gives constructive notice and protects the licensee against subsequent bona fide purchasers without actual notice.