2024a IPM Exam May 2024 FINAL_ANSWERS.pdf Flashcards
(17 cards)
What intellectual property tools are most effective for achieving market leadership with a consumer product like toys?
Trademarks (e.g., LEGO logo), design rights (protecting the shape of a specific toy), and patents (e.g., a novel brick connection mechanism).
If a toy company partners with an entertainment firm (e.g., Disney), what IP tools can maximize the value of that relationship?
Licensing agreements (e.g., exclusive rights to make toys from a movie), co-branding trademarks (e.g., LEGO + Star Wars), and merchandising contracts.
How can contracts and IP tools help build a shared sustainability ecosystem among different companies?
Contracts can require partners to use eco-friendly materials (e.g., recycled plastic), and a certification trademark (like “EcoToy Certified”) can identify participants who comply.
What are the three main methods for valuing intellectual property, and what are examples of each?
Cost-based: Value of R&D for a patented drug.
Market-based: Comparing license fees for similar music streaming patents.
Income-based: Forecasting future profits from a patented solar panel technology.
What are different ways to share profits from a jointly developed product involving IP?
Proportionality: Based on each party’s investment (e.g., 70/30 split).
25% rule: Licensee pays 25% of profits.
Shapley value: Value sharing based on marginal contribution.
Example: LEGO and Disney splitting toy sales 50/50 after combining characters and building blocks.
What is Arrow’s Information Paradox and how do IP rights help resolve it?
You must reveal info to evaluate it, but once revealed, others can use it freely.
Example: A startup wants to sell a new algorithm, but once shown to an investor, it could be copied—patents or NDAs protect against this.
What are the three requirements for a patent of invention?
Novelty – never disclosed (e.g., new drug molecule)
Usefulness – must have a practical use (e.g., improves health)
Non-obviousness – not easily thought of by others (e.g., unique formulation method)
What international treaty allows inventors to claim priority when filing patents or trademarks abroad?
The Paris Convention – e.g., a Swedish company files a patent in Sweden, then files in the US within 12 months and claims the original filing date.
What is a grant-back clause in an IP license agreement?
It gives the original IP owner rights to improvements made by the licensee.
Example: A company licenses drone tech, improves battery life, and must grant those improvements back to the licensor.
What is dynamic freedom to operate (FTO), and why is it difficult to achieve?
It’s the ability to use a technology without infringing current or future IP rights.
Example: A smartphone maker may think it’s in the clear today, but future patents on 5G chips may block it.
What is a “field of use” restriction and how is it used in IP licensing?
It limits the use of IP to a specific sector.
Example: A chip manufacturer licenses tech for use in agriculture only, while reserving use in aerospace.
What are common IP risks in collaborations or joint ventures?
IP leakage: Partner misuses confidential tech.
Ambiguous ownership: Both parties claim rights to new invention.
Example: Two companies co-develop AI software, but disagree on who owns the code.
How can IP modularity reduce risk in collaborations?
By designing products with separable IP modules, each with clear ownership.
Example: A robot has a navigation module (Partner A) and gripping arm (Partner B), each protected separately to avoid disputes.
What is one argument against patents in pharmaceuticals, according to academic literature?
Patents may not actually promote innovation and can delay generic drug access.
Example: Boldrin & Levine argue that drug firms focus on extending patent life rather than real breakthroughs.
What is one argument for pharmaceutical patents?
They help recover R&D costs and encourage investment.
Example: Holgersson & Wallin show that patents enable a firm to raise funding for expensive clinical trials.
What is one alternative to patents for rewarding inventors of new medicines?
A prize system – governments reward inventors with a lump sum.
Example: In the past, prizes were used for innovations like food preservation and calculating longitude at sea.
Why might a prize system not work well outside pharmaceuticals?
It’s hard to define fair reward categories or predict value in fields like software.
Example: Should a prize be given for a better social media algorithm? Who judges the impact?
