Fact Pattern 11-1 Samantha Develops a New Type of Comb That Effectively Removes

question 41

Multiple Choice

Fact Pattern 11-1
Samantha develops a new type of comb that effectively removes loose dog hair and eliminates problems with shedding. Samantha had never seen such a comb on the market and was very surprised when she received notification that she was being sued for patent infringement by the holder of a patent on a similar type of comb. Samantha investigates and determines that the earlier patent was valid. Her friend Harry, a first year law student told her that she could not be guilty of patent infringement because she was not aware of the earlier patent, and that she should proceed to at least sell the rest of her inventory.
-Refer to fact pattern 11-1. Assuming the validity of the earlier patent,which of the following is true regarding Samantha's rights to legally continue selling the combs?

• A) She should stop selling the combs immediately.
• B) She may continue selling the combs until she sells the rest of her inventory, but she must then stop.
• C) Since she was not aware of the earlier patent when she started marketing her combs, she can continue to sell the combs indefinitely without providing any royalties to the holder of the initial patent.
• D) Since she was not aware of the earlier patent when she started marketing her combs, she can continue to sell the combs indefinitely, but she must pay reasonable royalties to the holder of the initial patent.

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Definitions:

Quarterly Dividends

Dividend payments made to shareholders four times a year, typically every three months.

Shares

Units of ownership in a company or financial asset that give shareholders a portion of the corporation's assets and profits.

Capital Gain

The increase in value of an asset or investment above its purchase price, often realized upon sale of the asset.

Total Return

The complete return on an investment over a given time period, including both capital gains and dividends or interest, expressed as a percentage of the initial investment cost.