Boeing replied that gulfstream should take up the matter


PATENTS

Review this case carefully and answer the question at the end of the case in detail.

Boeing received a contract from the Air Force to build 10 C-17 Cargo airplanes. The Government issued a change order to the contract to add an upward extension of the wings known as "winglets." These features provided a 10% increase in range with no other changes to the aircraft. The contract for the C- 17 contained the Authorization and Consent clause, and the Patent Indemnity clause.

The aircraft was on display at the Paris Air Show. Gulfstream Aircraft , who attended the show had developed the "winglets" for use on their aircraft, Gulfstream IV, and had a patent on the design. Gulfstream sent a letter to Boeing, declaring patent infringement, and demanded reimbursement for "winglets" used on the C- 17.

Boeing replied that Gulfstream should take up the matter with the Air Force since the contract gave them the authorization and consent to use any patented invention.

QUESTION:

1. Is Boeing's response valid?

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Business Law and Ethics: Boeing replied that gulfstream should take up the matter
Reference No:- TGS02494560

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