International Business Law Chapter 17
Marking Scheme 2024
Intellectual Property Rights (IPR) - ANS-- Companies need them to dominate Market
Place
- Build strong IPR portfolios
- recognized as central driver for growth and stock value
- shift from tangible to IPR by companies
- give owners monopoly to sue anyone that competes within its literal bounds
Litigation Section - ANS-- First to a patent can hold a monopoly over any and all tech in
that category (apple triangular computer)
- companies can force close the competition
- Lit is unavoidable
- Smartphone Wars (Apple offensive, now everyone sues back)
IPR Infringment - ANS--Owner is plaintiff and asserts infringement of one ore more IPRs
sold or manufac. by the accused infringer
- Defense can assert non-infringe, invalidity, or "unenforceability" Or even counter claim
- US Fed District Courts have rights to patent cases
Apple Inc V. Samsung - ANS-- August 2012 Jury Awarded Apple 1 billion in
infringement damages
- Court Ordered a new trial bc they identified an impermissible legal theory for the
damage awards
- New amount 598,908
Fair, Reasonable, and Nondiscriminatory (FRAND) terms - ANS-- Hague Court said
Samsung had to give Apple a license on FRAND terms befor seeking injunctive relief
- It can significantly decrease the risk of patent hold up and the percieved adv of
litigation (keeping comp out of mkt place)
- can only be applied in limited circumstances and hasn't curbed the lawsuits enough
yet :(
Reasons for IPR Transfer Arangements - ANS-- most rapidly growing method of doing
business abroad is to transfer IPRs to a foreign business in exchange for a fee or other
, form of payment
- no need to involve any capital investment abroad ( they just send the idea over and
have other companies manufacture it)
- the tech transfer can be the US comp's contribution to a joint venture - Risk is always
the same: losing control of the IPRs and helping establish a competitor
royalty - ANS-- a license fee
- finding the right royalty level is tricky due to unknown market
- Too high could lead to end product price being to high to be competitive
License - ANS-- limited permission to use the firm's trademarks, copyrights, or know
how in making products for sale in a foreign country
- often time provide know how and materials for re-export back to US
Utility Patent - ANS-- A patent with a broad range of potential applications
- novel and useful process, machine, or composition of matter
design patent - ANS-protects the ornamental features of an article of manufacture
IPR transfer Firms - ANS-1. IPR Clearing houses - strategy and advice, valuation, and
infringement analysis
2. IPR brokers - handle IPR auctions and brokerages
3. IPR aggregation Funds for open source software
4. Firms that identify and acquire patents for the purpose of preventing violations and
litigation costs
Transfer Arrangements - ANS-- Licensor agrees to provide services to facilitate the
anticipated activities: setting up an assembly line, training, tech support. - licensor
generally seeks to limit the licensee's use of transfered IPR.
Geographical limit - ANS-licensee can only sell the doll within a specified nation or other
geo boundary
Field of Use Limit - ANS-restrict the applications a licensee can employ the IPR
Output/Customer limit - ANS-basically the licensee can only make the product not sell it
Competitive Circumstances - ANS-- When a licensee is putting in a lot of resources into
the IPR it will often demand [EXCLUSIVE RIGHTS] to ensure it makes a profit from the
Marking Scheme 2024
Intellectual Property Rights (IPR) - ANS-- Companies need them to dominate Market
Place
- Build strong IPR portfolios
- recognized as central driver for growth and stock value
- shift from tangible to IPR by companies
- give owners monopoly to sue anyone that competes within its literal bounds
Litigation Section - ANS-- First to a patent can hold a monopoly over any and all tech in
that category (apple triangular computer)
- companies can force close the competition
- Lit is unavoidable
- Smartphone Wars (Apple offensive, now everyone sues back)
IPR Infringment - ANS--Owner is plaintiff and asserts infringement of one ore more IPRs
sold or manufac. by the accused infringer
- Defense can assert non-infringe, invalidity, or "unenforceability" Or even counter claim
- US Fed District Courts have rights to patent cases
Apple Inc V. Samsung - ANS-- August 2012 Jury Awarded Apple 1 billion in
infringement damages
- Court Ordered a new trial bc they identified an impermissible legal theory for the
damage awards
- New amount 598,908
Fair, Reasonable, and Nondiscriminatory (FRAND) terms - ANS-- Hague Court said
Samsung had to give Apple a license on FRAND terms befor seeking injunctive relief
- It can significantly decrease the risk of patent hold up and the percieved adv of
litigation (keeping comp out of mkt place)
- can only be applied in limited circumstances and hasn't curbed the lawsuits enough
yet :(
Reasons for IPR Transfer Arangements - ANS-- most rapidly growing method of doing
business abroad is to transfer IPRs to a foreign business in exchange for a fee or other
, form of payment
- no need to involve any capital investment abroad ( they just send the idea over and
have other companies manufacture it)
- the tech transfer can be the US comp's contribution to a joint venture - Risk is always
the same: losing control of the IPRs and helping establish a competitor
royalty - ANS-- a license fee
- finding the right royalty level is tricky due to unknown market
- Too high could lead to end product price being to high to be competitive
License - ANS-- limited permission to use the firm's trademarks, copyrights, or know
how in making products for sale in a foreign country
- often time provide know how and materials for re-export back to US
Utility Patent - ANS-- A patent with a broad range of potential applications
- novel and useful process, machine, or composition of matter
design patent - ANS-protects the ornamental features of an article of manufacture
IPR transfer Firms - ANS-1. IPR Clearing houses - strategy and advice, valuation, and
infringement analysis
2. IPR brokers - handle IPR auctions and brokerages
3. IPR aggregation Funds for open source software
4. Firms that identify and acquire patents for the purpose of preventing violations and
litigation costs
Transfer Arrangements - ANS-- Licensor agrees to provide services to facilitate the
anticipated activities: setting up an assembly line, training, tech support. - licensor
generally seeks to limit the licensee's use of transfered IPR.
Geographical limit - ANS-licensee can only sell the doll within a specified nation or other
geo boundary
Field of Use Limit - ANS-restrict the applications a licensee can employ the IPR
Output/Customer limit - ANS-basically the licensee can only make the product not sell it
Competitive Circumstances - ANS-- When a licensee is putting in a lot of resources into
the IPR it will often demand [EXCLUSIVE RIGHTS] to ensure it makes a profit from the
