Which of the Following Statements About Patent Licensing Is False

question 12

Multiple Choice

Which of the following statements about patent licensing is false?

• A)Firms that seek to monopolize by acquiring most or all of the patents related to an area of commerce will not face liability for violating the Sherman and Clayton Acts.
• B)Patent holders cannot lawfully control the price at which patented items are resold by distributors purchasing them from the patent holder.
• C)Patent holders cannot use their patents to impose tying agreements that would be unlawful under the Sherman and Clayton Acts.
• D)The Supreme Court has recognized that an important part of holding a patent is the right to license others to manufacture the patented item.

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Definitions:

Herfindahl Index

A measure of market concentration to assess the level of competition within an industry, calculated by summing the squares of each company's market share.

Highly Elastic

Describes a situation where demand for a product is highly sensitive to changes in price, leading to significant changes in quantity demanded.

Highly Inelastic

A situation in which demand or supply changes very little in response to large changes in price, often applicable to essential or unique goods and services.