The Cost of Successfully Defending a Patent in an Infringement

question 30

Multiple Choice

The cost of successfully defending a patent in an infringement suit should be

• A) charged to Legal Expenses.
• B) deducted from the book value of the patent.
• C) added to the cost of the patent.
• D) recognized as a loss in the current period.

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Definitions:

Good Faith Purchaser

A Good Faith Purchaser is someone who buys property without knowledge of any prior claims, disputes, or flaws related to the property, thereby obtaining legal ownership.

Holder In Due Course

A legal term referring to a person who has acquired a negotiable instrument in good faith and for value, and thus has certain rights above the original payee.

Acceptor

The person (the drawee) who accepts a draft and who agrees to be primarily responsible for its payment.

Ordinary Holder

An ordinary holder in financial contexts refers to an individual or entity that legally possesses a negotiable instrument, like a check or draft, without necessarily having any special rights, claims, or defenses related to it.