PPC Patent Licensing & Assignments 2

Question 1

What is a royalty in a patent license agreement?

Accepted Answer

Compensation paid by the licensee to the licensor for the right to practice the patent

Answer

A royalty is the ongoing compensation paid by the licensee to the licensor—often as a percentage of net sales or a fixed per-unit fee—in exchange for the right to practice the patented technology.

Question 2

What is a cross-licensing agreement?

Accepted Answer

An arrangement in which two parties grant each other licenses to their respective patents

Answer

A cross-licensing agreement is a mutual arrangement where two patent holders grant each other licenses to their respective patents, often used to resolve infringement disputes or enable both parties to operate freely in a technology space.

Question 3

What is a patent pool?

Accepted Answer

An arrangement where multiple patent holders aggregate their patents and license them as a package to interested parties

Answer

A patent pool aggregates patents from multiple holders into a single licensing package, simplifying licensing for implementers and reducing the risk of royalty stacking in technology-dense industries.

Question 4

What does 'running royalty' mean in a patent license?

Accepted Answer

An ongoing royalty calculated as a percentage of sales or per-unit fee based on actual use of the licensed technology

Answer

A running royalty is a periodic payment tied to the licensee's ongoing commercial activity—such as a percentage of net sales—providing the licensor with compensation proportionate to actual use.

Question 5

What did the Bayh-Dole Act primarily establish regarding federally funded inventions?

Accepted Answer

It allows universities and small businesses to retain patent rights to inventions arising from federally funded research

Answer

The Bayh-Dole Act of 1980 permits universities, nonprofit organizations, and small businesses to elect to retain ownership of inventions made with federal funding, subject to certain government rights including march-in rights.

(PPC) Patent Paralegal Certification Practice Test

(PPC) Patent Paralegal Certification Practice Test

PPC Patent Licensing & Assignments 2