Asked by TRISHA MARTINEZ on May 18, 2024
Verified
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.
Patent Licensing
An agreement in which a patent holder allows another party to use, make, sell, or distribute the patented invention for a defined period, terms, and territory.
Tying Agreements
Business arrangements where the buyer of a product or service is required to purchase an additional product or service from the seller.
- Examine the use of antitrust regulations in the context of patent licensing, along with the discussions on what constitutes legal versus illegal pricing strategies.
Verified Answer
SR
sarah rashidMay 23, 2024
Final Answer :
A
Explanation :
Firms that seek to monopolize by acquiring most or all of the patents related to an area of commerce may face liability for violating Section 2 of the Sherman Act or Section 7 of the Clayton Act because a patent has been held to be an asset within the meaning of Section 7.
Learning Objectives
- Examine the use of antitrust regulations in the context of patent licensing, along with the discussions on what constitutes legal versus illegal pricing strategies.