Entrepreneurship and Small Business (ESB) Certification Practice Exam

Is patent licensing typically utilized for new products or inventions?

1. True

2. False

3. Only for established products

4. Only for software inventions

The correct answer is: True

Patent licensing is indeed typically utilized for new products or inventions. This approach allows the patent holder to grant permission to another party to use, produce, or sell the patented invention. By licensing a patent, the inventor can generate revenue while still retaining ownership of the intellectual property. Using patent licensing for new inventions is particularly advantageous because it enables inventors to leverage their innovations without the need for extensive personal investment in production or distribution. It encourages collaboration, allowing businesses to bring new technologies or products to market that they may not have the resources to develop independently. In contrast, established products may not often require licensing agreements since these products already have market presence and business models in place. Similarly, limitations to software inventions do not capture the broader strategy of patent licensing, which can also apply to various other fields of innovation.