Kermit Wong Invents a New Type of Computer Even Smaller

question 42

Multiple Choice

Kermit Wong invents a new type of computer even smaller than a calculator and patents the invention. A large U.S. computer company buys the rights and makes the units at its California plant, whence it ships them across North America. Kermit realizes that he could make them more cheaply, but the computer company refuses to give him a licence to do so in Canada. Which of the following is true?

• A)Kermit can apply for a compulsory licence and the government will permit him to make and sell the units in Canada.
• B)There is nothing Kermit can do
• C)Kermit can apply but will be unsuccessful in obtaining a compulsory licence because the patent holder is using the patent.
• D)Kermit can apply but will be unsuccessful because compulsory licensing only applies to drugs.
• E)Kermit can apply but will be unsuccessful in obtaining a compulsory licence because the patent holder is selling the computer in Canada.

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Definitions:

Credit Manager

A professional responsible for overseeing a company's credit granting process and managing the credit risks and policies.

Accounts Receivable

Payments pending from customers to a business for items or services that have been supplied but not yet remitted.

Cash Manager

An individual or team responsible for managing a company's cash flow to meet operational needs and investment goals.

Cash Cycle

The duration of time it takes a company to convert its investments in inventory and other resources into cash flows from sales.