Exam 17: Protecting and Licensing Intellectual Property

Transfer of technology laws are U.S. statutes that require U.S. companies to share their technology and research with firms in Africa.

Under U.S. copyright law, an author's exclusive rights end upon his/her demise.

The TRIPS Agreement:

Governments in developing countries usually encourage the use of licensed intellectual property by diligently enforcing laws designed to protect it from theft or other means of exploitation.

Which of the following is true about fair, reasonable, and nondiscriminatory (FRAND) licensing terms?

Which of the following is not of the thre e type s o f regulator y scheme s fo r transfe r agreement s ?

Intellectua l propert y right s i n som e countrie s ar e no t protecte d because:

Restrictions written into the franchise agreement must be strictly adhered to regardless of the effects it may have on the competitive potential of the franchisee in the host country.

The Council of the European Union has jurisdiction over franchise agreements operating in its member countries.

Under a bilateral agreement concluded in 1994 between the U.S. and the EU:

Creat e a structur e o r standard s fo r a n onlin e internationa l disput e resolutio n foru m that handl es IP R issues.

Exhibit 17-1 Accuraphoto USA (AUSA) owns the "Accuraphoto" trademark in the United States. AUSA produces the "SureShot" camera, which is known to consumers as a moderately priced quality product. AUSA entered into a contract with Honshu Photographic, Inc. (HPI), a Japanese corporation. Pursuant to the terms of the contract, HPI was permitted to manufacture and market "SureShot" cameras utilizing the "Accuraphoto" trademark in return for payment of royalties based upon a percentage of HPI's sales. After producing "SureShot" cameras for a short time at its Japanese facility, HPI moved production to its facility in the Philippines in order to reduce labor costs. The cameras produced at the Philippine facility utilized the "Accuraphoto" trademark but were marketed under the name "SharpShot." Additionally, these cameras contained improved electronic features incorporated into the product by HPI engineers. Despite the inclusion of these improvements, "SharpShot" cameras proved to be of inferior quality. Furthermore, "SharpShot" cameras have begun to show up on the shelves of U.S. discount retailers such as K-Mart and Wal-Mart. Additionally, several "SharpShot" cameras have been sent by American consumers to AUSA's American facilities for repair. Finally, HPI has refused to share access with AUSA to the electronic improvements incorporated into the "SharpShot" on the basis that they are confidential proprietary information. Refer to Exhibit 17-1. What terms could AUSA have included in its contract with HPI that could have avoided this legal morass?

The great advantage of the International Convention for the Protection of Industrial Property is that by filing a trademark with this international body, the trademark owner achieves virtually worldwide trademark protection.

TRIPS requires every member of the World Trade Organization to:

Licensors of IPRs are generally wary of offering licensees exclusive rights in a certain geographic area.

Since 1996, the European Union's Trademark Regulation has allowed a single trademark registration enforceable in all members of the European Union.

The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) requires developing countries that are members of the WTO to adopt intellectual property laws similar to the United States.

Transfer agreements in Japan and some newly developed countries such as Korea require:

Licensees of IPRs are generally eager to operate under specific marketing quotas requested by the licensor.

U.S. courts have been reluctant to restrict gray market competition in situations where the product's quality being introduced to the home market is indistinguishable from its native counterpart.