The Cost of Successfully Defending a Patent in an Infringement

question 60

Multiple Choice

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

• A)charged to Legal Expenses.
• B)deducted from the carrying amount 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:

Multiplier

A factor by which an increase in investment results in a greater increase in output.

Dollars

Dollars are a unit of currency used in the United States and other countries, serving as a medium of exchange, unit of account, and store of value.

Arbitrage

The practice of exploiting price differences for the same asset in different markets by simultaneously buying and selling the asset to take advantage of those price differences.

Risk-free Rate

A forecasted return rate on a risk-free investment, usually shown through government security yields.