Which of the following best describes the relationship between a patent holder and a patent infringer?

The relationship between a patent holder and a patent infringer is characterized by legal implications, particularly the potential for consequences faced by the infringer. When a patent holder has obtained a patent, they possess the exclusive rights to produce, use, sell, or license their invention. If an individual or entity infringes on these rights—meaning they use or sell the patented invention without permission—they can be subject to legal action by the patent holder.

The patent holder holds the legal authority to enforce their patent, which can result in the infringer facing lawsuits. These legal actions may lead to financial penalties, an injunction to cease infringing activities, or the obligation to pay royalties. This dynamic is essential in protecting intellectual property rights, ensuring that inventors are compensated for their innovations and that their rights are upheld under the law.

In contrast, the other statements present inaccuracies regarding this relationship: patent holders do have exclusive rights, but there are legal limitations; they can recover damages in cases of infringement; and not all patent infringers are competitors, as infringement can occur in various contexts unrelated to market competition. Thus, the focus on the legal consequences faced by the patent infringer accurately depicts a critical aspect of the relationship established within patent law.