CLP Licensing Procedures & Policies 5

Question 1

When computing a reasonable royalty for patent infringement damages, the Georgia-Pacific factors are used to:

Accepted Answer

Reconstruct a hypothetical negotiation to set a reasonable royalty rate

Answer

The Georgia-Pacific factors provide a multi-factor framework courts use to reconstruct what royalty a willing licensor and licensee would have agreed to in a hypothetical pre-infringement negotiation.

Question 2

A 'running royalty' differs from a 'paid-up license' in that running royalties:

Accepted Answer

Accrue on an ongoing basis tied to actual sales or usage

Answer

Running royalties continue throughout the license term as a percentage of ongoing sales, while a paid-up license is a one-time payment granting perpetual use rights.

Question 3

Under FRAND (Fair, Reasonable, and Non-Discriminatory) licensing obligations, a patent owner must:

Accepted Answer

License standard-essential patents on terms that are fair, reasonable, and non-discriminatory

Answer

FRAND commitments arise when patents are declared essential to a standard, requiring the holder to license on non-discriminatory terms to all implementers who request a license.

Question 4

Which clause in a license agreement typically specifies the procedure for resolving disputes without litigation?

Accepted Answer

Dispute resolution / arbitration clause

Answer

Dispute resolution clauses specify the agreed mechanism — such as mediation, arbitration, or expert determination — for settling controversies outside of court.

Question 5

In a licensing context, 'technology transfer' most accurately refers to:

Accepted Answer

The process of transferring knowledge, skills, and IP rights enabling a licensee to use and build upon a technology

Answer

Technology transfer encompasses conveying not just IP rights but also the know-how, training, and technical support enabling the licensee to practically implement the technology.

(CLP) Certified Licensing Professional Practice Test

(CLP) Certified Licensing Professional Practice Test

CLP Licensing Procedures & Policies 5