CLP Compliance & Risk Management 2

Question 1

A licensee operating in a regulated industry fails to obtain required government approvals before sublicensing. What type of risk does this primarily represent?

Accepted Answer

Regulatory compliance risk

Answer

Failure to obtain required government approvals before sublicensing constitutes a regulatory compliance risk, which can result in fines, injunctions, or license revocation.

Question 2

Which contractual provision specifically requires a licensee to maintain records sufficient for the licensor to verify royalty calculations?

Accepted Answer

Audit rights clause

Answer

An audit rights clause grants the licensor the right to inspect the licensee's books and records to verify that royalty payments are accurate and complete.

Question 3

A U.S. company licenses technology to a foreign entity located in a country subject to OFAC sanctions. What is the most immediate compliance concern?

Accepted Answer

Export control and sanctions violations

Answer

OFAC (Office of Foreign Assets Control) sanctions prohibit U.S. persons from engaging in transactions with sanctioned entities or countries, making this an export control and sanctions compliance issue.

Question 4

In a licensing compliance program, what is the primary purpose of conducting a 'gap analysis'?

Accepted Answer

To compare current practices against required compliance standards

Answer

A gap analysis compares an organization's current compliance practices against required standards or regulations to identify deficiencies that must be addressed.

Question 5

When a licensee discovers that a licensed product infringes a third party's patent, which risk category is most directly implicated for the licensor?

Accepted Answer

Indemnification liability risk

Answer

Third-party patent infringement by a licensed product triggers indemnification liability risk for the licensor, who may be contractually obligated to defend or compensate the licensee.

(CLP) Certified Licensing Professional Practice Test

(CLP) Certified Licensing Professional Practice Test

CLP Compliance & Risk Management 2