The Patent System Is Often Considered to Be Unfairly Stacked

question 68

Multiple Choice

The patent system is often considered to be unfairly stacked against start-ups because:

• A) bigger multinational firms enjoy patent protection in all countries as opposed to start-ups, which are domestic firms that do not get such protection for the most part.
• B) the intellectual property laws are not adequate to protect the interests of smaller firms from infringements.
• C) the patent system grants patents for innovations on a differential basis, with bigger firms getting precedence over start-ups.
• D) high litigation costs coupled with a few months of litigation can sink an early stage firm.
• E) patents are granted by the patent system on an ad hoc basis wherein firms that have been in business longer get patent protection for longer periods of time.

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Definitions:

Prior Period Adjustment

Corrections of errors in previously published financial statements not related to the current period.

Income Statement

A report detailing a company’s financial activities, including income and expenditures, over a designated accounting timeframe.

Computer Equipment

Hardware and devices, including computers, servers, and peripherals, necessary for the operations and management of digital tasks.

Price-earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, indicating market expectations.