Andrew and Martha license each other to use their patents. They agree not to license their patents to anyone else without asking for the other's permission first. Which of the following statements is true of Andrew and Martha's agreement?
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 unlawful cross-licensing because it restricts competition by preventing either party from licensing their patents to others without permission, which can be considered anti-competitive behavior.

Andrew and Martha License Each Other to Use Their Patents