A USLicensor Can Try to Prevent a Licensee from Voiding Its

question 15

Multiple Choice

A U.S.licensor can try to prevent a licensee from voiding its contract and using what it has learned to create a competitor by:

• A) using lawyers from both countries to write the licensing agreement.
• B) insisting that all licensees have a published code of ethics.
• C) having the licensee pay a fee for the use of the manufacturing process,trademark,patent,or other proprietary knowledge.
• D) locally registering patents and trademarks to the U.S.firm-not the licensee.
• E) avoiding the use of any patents and trademarks.

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Definitions:

Intangible Assets

Non-physical assets that have a value, such as trademarks, patents, and copyrights.

Appraised Value

The estimated monetary value of a property as assessed by a professional appraiser based on its features and market conditions.

Consolidated Financial Statements

Financial reports that aggregate all financial data for a parent company and its subsidiaries, showing the financial results and position of the entire corporate group as a single entity.

Inter-company Transactions

Financial activities between different divisions or subsidiaries within the same parent company.