Question 3

Renee Pharmaceutical Corporation licenses to a customer, Anna Inc., its patent rights to an approved drug compound for 10 years and also promises to manufacture the drug for Anna. The drug is a mature product; therefore, Renee will not undertake any activities to support the drug, which is consistent with its customary business practices. Renee is identifying the performance obligations in the contract with Anna.

Question 4

Based on the information in Question 3, if Renee's manufacturing process used to produce the drug is not unique or specialized and several other entities can also manufacture the drug for Anna, Renee will consider the implication on its patent rights.

REQUIRED

Explain how the manufacturing process affects the determination of the nature of Renee's promise on transfer patent rights.