Ch. 6

The initial registration for a trademark lasts:

10 years.

The term of a copyright is the author's life plus:

70 years.

Licensing has significant value as a marketing strategy to holders of patents, trademarks, or copyrights. Describe licensing agreements in each of the three intellectual property facets: patents, trademarks, and copyright.

A patent license agreement specifies how the licensee would have access to the patent. For example, the licensor may still manufacture the product but give the licensee the rights to market it under their label in a competitive market. This agreement must be carefully worded and should involve a lawyer, to ensure the protection of all parties. Licensing a trademark generally involves a franchising agreement. The entrepreneur operates a business using the trademark and agrees to pay a fixed sum for use of the trademark, pay a royalty based on sales volume, buy supplies from the franchisor, or some combination of these. Copyrights are another popular licensed property. Computer games have been designed using licenses from arcade games, movies and television shows. Celebrities will often license the right to use their name, likeness, image, or name in a product.

A trademark is given a 50-year registration with no renewal. T/F?

False

Casualty insurance may include fire, burglary and theft, and business interruption coverage. T/F?

False

To prevent others from copying his or her ideas, the entrepreneur should not send drawings with the patent application. T/F?

False

Under the Sarbanes-Oxley Act CEOs are not required to vouch for the firm's financial statements because they are not involved with the day to day operations of the firm. T/F?

False

Which of the following is not part of intellectual property?

Insurance

Which of the following is not part of intellectual property? Copyrights Trademarks Insurance Trade secrets

Insurance

Which of the following is not a condition that makes a contract legally enforceable? Money is exchanged for products/services Consideration is given by both parties All parties involved are competent Acceptance of the offer must be voluntary

Money is exchanged for products/services

Which of the following is not a condition that makes a contract legally enforceable? Acceptance of the offer must be voluntary. All parties involved are competent. Money is exchanged for products/services. Consideration is given by both parties.

Money is exchanged for products/services.

Which of the following is true regarding the Sarbanes-Oxley Act?

Private companies are not included in this act.

Which of the following is true regarding the Sarbanes-Oxley Act? The act only covers a narrow range of corporate governance activity. The act does not cover fraud via TV or radio. Private companies are not included in this act. It only applies to companies that make over $10 million in gross revenue.

Private companies are not included in this act.

What type of agreement must always be in writing in order to be a legally binding contract? Supplier Client Distributor Real estate

Real estate

Define a trade secret and briefly discuss a noncompetition agreement.

Trade secret means protection against others revealing or disclosing information that could be damaging to business. In certain instances, the entrepreneur may prefer to maintain an idea or process as confidential and to sell or license it as a trade secret. The trade secret will have a life as long as the idea or process remains a secret. Noncompete agreements are documents that are prepared by an employer and signed by an employee in order for the company to protect valuable assets ranging from product information, to marketing ideas, and unique strategies. Historically, noncompete agreements have not been very successful in courts. Well-written agreements will hold up in court if they are fair to all parties and have a reasonable duration and geographic coverage.

A design patent has a term of 14 years, beginning on the date of filing with the Patent and Trademark Office (PTO). T/F?

True

A patent is a contract between the government and an inventor. T/F?

True

A utility patent grants the owner protection from anyone else making, using, and/or selling the identified invention and generally reflects protection of new, useful, and unobvious processes. T/F?

True

Entrepreneurs, because of their lack of understanding of intellectual property, ignore important steps that they should have taken to protect these assets. T/F?

True

Licensing agreements generate revenue while minimizing risk and start-up investment costs. T/F?

True

To minimize patent risk, an entrepreneur should seek a patent attorney who has experience in their product line. T/F?

True

While dealing with leaking of trade secrets, legal action can be taken only after the secret has been revealed. T/F?

True

Identify and describe the three different types of patents.

Utility patent—Most popular type, 20-year term. A utility patent basically grants the owner protection from anyone else making, using, and/or selling the identified invention and generally reflects protection of new, useful, and unobvious processes. Design patent—Covering new, original, ornamental, and unobvious designs for articles of manufacture, a design patent reflects the appearance of an object. These patents are granted for a 14-year term and, like the utility patent, provide the inventor with a negative right excluding others from making, using, or selling an article having the ornamental appearance given in the drawings included in the patent. Plant Patents—These are issued under the same provisions as utility patents and are for new varieties of plants. These patents represent a limited area of interest, and thus very few of these types of patents are issued.

What type of insurance is mandatory in some states?

Workers' Compensation

The section of the patent application which provides the criteria by which any infringement will be determined is the:

claims section

Authors or publishers of software are protected under:

copyrights.

To apply for a trademark:

intent to use the mark is required.

Copyrights can protect all of the following except: molded plastic parts. sculptures. models. music.

molded plastic parts.

Copyrights are registered with:

the Library of Congress.