CLP Licensing Procedures & Policies 2

Question 1

When a licensee wants to sublicense rights to a third party, what must typically be present in the original license agreement?

Accepted Answer

An explicit provision granting sublicensing authority

Answer

Sublicensing rights must be expressly granted in the original license agreement because they are not implied by default.

Question 2

In a field-of-use restriction, the licensee is limited to using the licensed technology in:

Accepted Answer

A specific defined application or market segment

Answer

Field-of-use restrictions confine the licensee's exploitation of the technology to a specifically defined application or industry sector.

Question 3

What is the primary purpose of a license audit clause?

Accepted Answer

To verify that royalty payments are accurately calculated and paid

Answer

Audit clauses give the licensor the right to inspect the licensee's books to confirm royalties are correctly reported and paid.

Question 4

A 'most-favored licensee' clause ensures that:

Accepted Answer

The licensee receives the lowest royalty rate the licensor offers any other party for comparable rights

Answer

A most-favored licensee clause contractually guarantees the licensee terms no less favorable than those offered to any comparable licensee.

Question 5

Which document is typically executed FIRST when two parties begin exploring a licensing relationship?

Accepted Answer

Non-disclosure agreement (NDA)

Answer

An NDA is signed first to protect confidential information shared during preliminary due diligence and negotiations.

(CLP) Certified Licensing Professional Practice Test