Question

Which of the following is true? Multiple Choice

A) Licenses for functional intellectual property typically have revenue recognized over a period of time.
B) Licenses for symbolic intellectual property convey a right of use, and not a right of access.
C) Software and media are not examples of functional intellectual property.
D) Licenses for functional intellectual property can be viewed as conveying a right of use.

Answer 1

The answer is: D) Licenses for functional intellectual property can be viewed as conveying a right of use.

Step-by-step explanation:

Functional Intellectual Property (IP) is different from other IP since it must possess a standalone functionality. This means it must be able to perform a task, process a transaction, etc.

Because functional IP possess a standalone functionality, licensing agreements provide the customer immediate use of the functional IP. Therefore, revenue from licensing functional IP is recognized at the time the license is given.