CLP Ethical Practices in Licensing 5

Question 1

A licensee requests a meeting to discuss technical assistance, and the licensing professional realizes the licensee is attempting to reverse-engineer the licensed software beyond the agreed scope.
The ethical response is to:

Accepted Answer

Decline to assist and document the potential contractual breach

Answer

Continue the meeting to gather information before acting

Answer

Provide technical assistance and add a contractual amendment later

Answer

Report the licensee to law enforcement immediately

Question 2

The ethical principle of 'competence' in licensing practice means that a CLP professional should:

Accepted Answer

Only advise on matters within their verified expertise, seeking help or disclosing limitations otherwise

Answer

Always give an opinion even on unfamiliar topics to maintain client confidence

Answer

Delegate all legal questions to attorneys regardless of the professional's knowledge

Answer

Limit their practice to fields where they hold academic degrees

Question 3

Which action by a licensing professional would MOST likely constitute an ethical violation related to misrepresentation?

Accepted Answer

Claiming a patent is commercially practiced when it is not yet reduced to practice

Answer

Presenting comparable royalty benchmarks from public databases

Answer

Disclosing that the patent portfolio has pending continuation applications

Answer

Noting that a licensed technology has been independently validated

Question 4

In ethical IP management, the duty of loyalty requires that a licensing professional acting as an agent must:

Accepted Answer

Prioritize the principal's interests above the agent's own financial interests

Answer

Negotiate the best possible deal for themselves as intermediary

Answer

Split any brokerage fee equally between licensor and licensee

Answer

Disclose all principal communications to the counterparty

Question 5

A licensing professional is aware that a specific valuation methodology would produce a higher royalty for their employer's benefit, while a more widely accepted methodology would produce a lower, fairer rate. Ethical conduct requires:

Accepted Answer

Applying the most appropriate and widely accepted methodology and disclosing alternatives

Answer

Using the employer-favorable methodology since the employer sets compensation

Answer

Averaging both methodologies to reach a compromise

Answer

Using the favorable methodology only if the licensee does not specifically ask for alternatives

Question 6

When a licensing professional learns that confidential deal terms have been leaked to a competitor, the FIRST ethical obligation is to:

Accepted Answer

Investigate internally, stop further disclosure, and notify affected parties

Answer

Deny any knowledge of the leak to protect the firm's reputation

Answer

Continue the deal and address the leak after closing

Answer

Blame the breach on the other party's legal team

Question 7

A technology licensor engages in 'sham litigation'—filing infringement suits they know are meritless to pressure smaller competitors into taking a license. This practice raises which primary ethical concern?

Accepted Answer

Abuse of the legal process and anticompetitive exclusionary conduct

Answer

Breach of the duty of confidentiality toward licensees

Answer

Violation of FRAND licensing commitment obligations

Answer

Misrepresentation of patent claims to the USPTO