2023a IPM Exam June 2023.pdf Flashcards
(10 cards)
What is a “field of use” clause and why is it important in IP collaborations?
A field of use clause defines specific markets or applications in which a party can use IP.
Example: BOSCO can use the co-developed sensor-bearing tech only in marine engines, while SKF can use it in all other fields.
What is the IP disassembly problem and how can it be managed in joint projects?
It involves dividing IP rights after a collaboration ends. This is managed via contracts that define ownership and licensing.
Example: SKF and BOSCO agree upfront on how to split patent rights and licensing terms when the project finishes.
What is IP modularity and how can it benefit IP collaboration?
It means IP boundaries align with technical modules, enabling clearer rights separation.
Example: One firm owns the software module, another the hardware. This makes IP licensing cleaner and reduces disputes.
How can companies avoid unintended knowledge leakage during joint development?
Share only necessary info, use NDAs, limit access.
Example: SKF doesn’t disclose design strategies for all bearings, and BOSCO keeps marine market knowledge confidential.
What is the purpose of the patent system and how does compulsory licensing fit into it?
Patents incentivize innovation and knowledge sharing. Compulsory licensing may conflict with incentives but can promote societal welfare in crises.
Example: During a pandemic, forced licensing of a vaccine patent may reduce private profits but increase access and save lives.
Is a 4% royalty cap in compulsory licenses fair in pharma?
Likely not. Pharma has high R&D costs and risks. A flat 4% may undercompensate innovators, especially in exclusive or high-margin markets.
Example: If a firm spends $1B to develop a drug, a 4% revenue royalty may not cover its investment.
What are the pros and cons of patenting, publishing, and secrecy?
Patenting: Strong legal rights but public disclosure.
Publishing: Prevents others from patenting but allows copying.
Secrecy: No disclosure, but risk of leaks.
Example: For a new desalination process, patenting works if it’s hard to invent around; secrecy may fail if staff leave and leak info.
When and where should you publish if you choose not to patent?
Publish in a place that’s either obscure (to hide) or well-known (to create prior art).
Timing should depend on competitor activity.
Example: If rivals are close to patenting, publish ASAP in a database indexed by patent offices.
What are the threats to using secrecy to protect an innovation?
Risks include employee departure and independent discovery by others.
Example: Like the AAA battery case, knowledge could leak if key researchers leave. Solution: use NDAs, compartmentalize info, retain key staff.
What does the Cost Method tell us about pricing a report?
If recreating the report costs $2M, selling it at $5,000 per copy is attractive.
Example: Firms are more likely to buy the report than invest millions to replicate it.
