Andrew and Martha License Each Other to Use Their Patents

question 69

Multiple Choice

Andrew and Martha license each other to use their patents. They agree not to license their patents to anyone else without asking for the other's permission first. Which of the following statements is true of Andrew and Martha's agreement?

• A) This arrangement must be registered in court.
• B) This arrangement constitutes an unlawful tying arrangement.
• C) This arrangement constitutes unlawful cross-licensing.
• D) This arrangement is legal and valid.

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Definitions:

Effective Usury Laws

Regulatory laws that set maximum interest rates on loans, intended to protect consumers from exorbitant or unfair lending practices.

Money Markets

Money markets are financial markets for short-term borrowing and lending, dealing with financial instruments like treasury bills and commercial paper.

Nominal Interest Rate

The interest rate stated on a loan or investment agreement, not adjusted for inflation, reflecting the gross interest per period.

Real Rate

The interest rate adjusted for inflation, reflecting the actual purchasing power of interest earnings.