Question 1

Bailey patents a device that allows its user to pretend to imitate the ability of a superhero copyrighted by Comic Cons,Inc.Bailey and Comic Con enter into a licensing agreement to make and sell the device as a toy to the public.Under the terms of the license,the licensee agrees to pay Bailey royalties of 4 percent.Their contract does not specify an end date.According to a majority of the United States Supreme Court in Kimble v.Marvel Entertainment,LLC,Comic Con can legally stop the payments

A)immediately.
B)never.
C)when the copyright expires.
D)when the patent expires.

D

Accepted Answer

According to the ruling in Kimble v. Marvel Entertainment, LLC, a licensee can legally stop paying royalties once the patent expires, even if the licensing agreement does not specify an end date. Therefore, in this scenario, Comic Con can stop making payments to Bailey once the patent for the device expires. The copyright expiration is relevant for protection of the superhero character, but not for the licensing agreement for the device. Choice A is incorrect because it assumes that Comic Con can stop payments immediately, which may not be the case if the contract does not allow it. Choice B is incorrect because, as mentioned earlier, the licensing agreement can end once the patent expires. Choice C is also incorrect because the copyright expiration is not relevant to the licensing agreement for the device.

Question 2

Hal patents a new type of running shoe.Hal and Iconic Shoe Company enter into a contract that allows the firm to make and market the shoe in exchange for royalty payments to Hal that decrease after the patent expires.In a previous case,a similar agreement was held to be invalid. According to the dissent in Kimble v.Marvel Entertainment,LLC,stare decisis

A)means "sticking to some wrong decisions."
B)does not require retaining "baseless and damaging precedents."
C)promotes unpredictability and inconsistency in the business world.
D)permits parties to negotiate a licensing agreement that reflects the true value of a patent.

B

Accepted Answer

Stare decisis does not require retaining "baseless and damaging precedents." It is a principle that requires courts to follow precedent and make decisions based on past rulings, but also allows for those rulings to be overturned or distinguished in appropriate circumstances.

Deck 29: Ethics Today: Stare Decisis Versus Spider Man