ADVANCED LICENSING INSTITUTE

PROFESSOR KARL F. JORDA

SUMMER '96

FINAL EXAMINATION


This is a one-hour, open book exam (one and one-half hours for certain foreign students). You may consult the course materials as well as any other materials. Yet, your examination must be your own work. Do not discuss it with other students.

Write your answers in the blue books supplied, but please use only one side of the page and observe the margins. Please write or print as legibly as possible.

Grading will be anonymous; please do not put your name on anything you turn in.

BE SURE YOUR EXAM NUMBER
IS ON EACH BLUE BOOK YOU TURN IN.


PROBLEM I

A. Facts

Jane Smart (Smart) invented a packaging and dispensing method and, apparatus (Invention). Subsequently, Smart granted exclusive rights to the Invention to ABC Industries (ABC). Their agreement required ABC to patent the Invention with promptness and diligence, if they deemed it patentable. Smart was required to assist in the patenting process. Their agreement also provided for transfer of any patents, once issued, to ABC. Ultimately, patents issued in the U.S., Canada, and Great Britain with the following expiration dates: British - 3/3/94, U.S. - 4./4/96, Canadian 5/5/98. Furthermore, the agreement required royalty payments to Smart on all sales until the last patent expired; if no patents issued, all royalties were to cease after ten (10) years. The Invention has been in use only in the U.S. And so far ABC has paid all royalties due under the agreement. Another royalty payment will be due soon.
 

B. Questions

1. Can ABC stop royalty payments to Smart now? If so, why? If not, why not? [20 points]

2. What would your answer be, if the Invention were also in use in Canada? [10 points]

3.  What did Patricia Martone suggest as to how Smart could have ensured that she continues to receive royalties based on Canadian sales after U.S. patent expiration? [15 points]

PROBLEM II

1. In his "Licensing in Canada" talk, Alec Szibbo discussed about a dozen differences between Canadian and American licensing practices. Give at least three examples of such differences. [20 points]

2. In his "Software Licensing" presentation, Ward Classen gave three alternatives for dealing with a situation where a licensee faces a third-party patent infringement threat and looks to licensor for resolution of the dilemma. Which are the three alternatives and which of the three is least acceptable to licensee and why? [20 points]

3. How does the U.S. Government protect software developed in federal laboratories? [15 points]

* * * END OF EXAMINATION * * *
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