Bertha is willing to issue a license for her patented copy machine, but only if the licensee agrees to buy all of the required copy paper from her office supply store during the term of the license. Which of the following statements is true about Bertha's plan?
A) This arrangement must be registered in court.
B) This arrangement constitutes an unlawful tying arrangement.
C) This arrangement constitutes unlawful cross-licensing.
D) This arrangement is legal and valid.

Question

Quizplus · Accepted Answer

This arrangement constitutes an unlawful tying arrangement. It is illegal to require a licensee to purchase a related product or service as a condition of the license. This is known as a tying arrangement, which is a violation of antitrust laws.

Bertha Is Willing to Issue a License for Her Patented