ACCT 324- Ch.12 (Intellectual Property)

A service mark is a mark licensed by a group that has established certain criteria for use of the mark such as "U.L. Tested" or "Good Housekeeping Seal of Approval."

false (A *certification mark is a mark licensed by a group that has established certain criteria for use of the mark such as "U.L. Tested" or "Good Housekeeping Seal of Approval.")

Copyrights protect ideas themselves.

false (Copyrights do not protect ideas themselves but only the fixed form of expressing them, such as books, periodicals, musical compositions, plays, motion pictures, sound recordings, lectures, works of art, and computer programs.)

In the case of, Toys "R" Us Inc., v. Canarsie Kiddie Shop Inc., evidence of actual confusion is a prerequisite for the plaintiff to recover in a trademark infringement action.

false (Evidence of actual confusion is a strong indication that there is a likelihood of confusion. It is not, however, a prerequisite for the plaintiff to recover.)

With which of the following does a government website address end? A. .gov B. .edu C. .net D. .org E. .com

A. .gov (Most web sites have two domains. The first-level domain, the one the address ends with, generally identifies the type of site. For example, if it is a government site, it will end in gov.)

Which of the following is true regarding trade secret protection? A. A trade secret is protected from unlawful appropriation by competitors as long as it is kept secret and consists of elements not generally known in the trade. B. A trade secret is protected from unlawful appropriation by competitors for ten years. C. A trade secret is protected from unlawful appropriation by competitors for twenty years. D. A trade secret is protected from unlawful appropriation by competitors for thirty years as long as it is kept secret and consists of elements not generally known in the trade. E. A trade secret is protected from unlawful appropriation by competitors for seventy years.

A. A trade secret is protected from unlawful appropriation by competitors as long as it is kept secret and consists of elements not generally known in the trade.

Which of the following is FALSE regarding trade secret protection? A. Competitors may not discover trade secrets by doing reverse engineering. B. Competitors may discover secrets by going on public tours of plants and observing the use of the trade secret. C. Lawful discovery of a trade secret means there is no longer a trade secret to be protected. D. A company's client list may be considered a trade secret. E. There is no registration of trade secrets.

A. Competitors may not discover trade secrets by doing reverse engineering. (Competitors may discover a trade secret by any lawful means, such as by doing reverse engineering or by going on a public plant tour and observing its use.)

Which of the following is an example of a product developing secondary meaning? A. Customers identify a certain color as identifying a company's product. B. Customers hear of the term through a secondary source such as media advertising. C. A company has illegally misappropriated a trademark and has used it in second place to identify a product. D. A company has agreed to only use a trademark secondarily after the primary user has abandoned it. E. A product has secondary meaning in the minds of consumers as to usefulness.

A. Customers identify a certain color as identifying a company's product.

As referenced in the case in the text, Toys "R" Us Inc., v. Canarsie Kiddie Shop Inc., which of the following is true regarding generic terms? A. Generic terms are not eligible for protection as trademarks. B. The rule that generic terms are ineligible for protection as trademarks does not apply to words that designate an entire species of products. C. The rule that generic terms are ineligible for protection as trademarks does not apply to sub-classifications or varieties of goods. D. Generic terms are eligible for protection as trademarks only if they have been used for at least ten years. E. Generic terms are eligible for protection as trademarks only if they have been used for at least seven years.

A. Generic terms are not eligible for protection as trademarks.

To be protected in ___ use, a trademark must be registered with the U.S. Patent and Trademark Office under the Lanham Act of 1947. A. Interstate B. Intrastate C. Interstate and intrastate D. Commercial E. Interstate, intrastate, and commercial

A. Interstate

When trademark infringement is alleged, what is the effect of actual confusion? A. It is not a prerequisite for the plaintiff to recover but it is a strong indication that there is a likelihood of confusion. B. It is a prerequisite for the plaintiff to recover. C. It is a weak indication that there is a likelihood of confusion. D. It is a strong indication that the plaintiff will bridge the gap. E. It is a strong indication that there is a likelihood of confusion and also that the plaintiff will bridge the gap.

A. It is not a prerequisite for the plaintiff to recover but it is a strong indication that there is a likelihood of confusion.

Which of the following is a principle of The Paris Convention of 1883? A. National treatment B. Nonconditional protection C. Complex treatment D. Enforcement priority E. Treaty affirmation

A. National treatment (The Paris Convention of 1883 has three basic principles: (1) national treatment, as defined under the Berne Convention; (2) the right of priority, which allows a national of a member state, 12 months after filing in his or her home nation, to file an application in any other member state and have the date of application be the date of the filing in the home nation; and (3) common rules, which set out minimum standards of protection in all states.)

Which of the following is a mark affixed to a good, its packaging, or its labeling? A. Product trademark B. Collective mark C. Certification mark D. Service mark E. Physical activity mark

A. Product trademark (A product trademark is a mark affixed to a good, its packaging, or its labeling, such as the Nike "swoosh.")

As recognized in the case in the text, Toys "R" Us Inc., v. Canarsie Kiddie Shop Inc., to obtain trademark protection, a descriptive term must have attained ____________. A. Secondary meaning B. Primary meaning C. Primary application D. Secondary application E. Secondary acknowledgement

A. Secondary meaning

Which of the following was developed by the United Nations as an alternative for countries who wanted to participate in some form of multilateral protection of copyrights, but did not want to agree to the terms of the Berne Convention? A. The Universal Copyright Convention B. The Agreement on Trade-Related Aspects of Intellectual Property Rights C. The Paris Convention D. The Signatory Agreement E. The US-Soviet Agreement

A. The Universal Copyright Convention

Which of the following is a mark identifying the producers as belonging to a larger group, such as a trade union? A. Product trademark B. Collective mark C. Certification mark D. Service mark E. Physical activity mark

B. Collective mark

After the initial renewal, assuming a trademark was initially registered after 1990, how often must the trademark be renewed? A. Every nine years. B. Every ten years. C. Every eleven years. D. Every twelve years. E. Every thirteen years.

B. Every ten years. (Once a mark has been registered, the registration must be renewed between the fifth and sixth years. After that renewal, the mark holder must renew every 10 years. [If the mark was initially registered before 1990, renewal is necessary only every 20 years.])

If a trademark is unregistered, which of the following may the holder recover when an infringer uses the mark to pass off goods as being those of the mark owner? A. Only damages. B. Only an injunction prohibiting the infringer from using the mark. C. An additional amount of damages computed as a multiplier of 5 times the original damages. D. Damages, an injunction prohibiting the infringer from using the mark, and additional damages based on a multiplier of 5 times the original damages. E. Damages and an injunction prohibiting the infringer from using the mark.

B. Only an injunction prohibiting the infringer from using the mark.

When a patent is issued for an object, it gives its holder the exclusive right to produce, sell, and use the object of the patent for ___ years from the date of application. A. Ten B. Twenty C. Thirty D. Forty E. Fifty

B. Twenty

With which of the following does a network website address end? A. .gov B. .edu C. .net D. .org E. .com

C. .net

A registrant may lose registration of a domain name for Internet usage by not using it for more than ___days. A. 30 B. 60 C. 90 D. 120 E. 180

C. 90

Which of the following is a mark licensed by a group that has established certain criteria for use of the mark, such as "U.L. Tested" or "Good housekeeping Seal of Approval"? A. Product trademark B. Collective mark C. Certification mark D. Service mark E. Physical activity mark

C. Certification mark

Which of the following consists of the fruits of one's mind? A. Theoretical property B. Cognitive property C. Intellectual property D. Protected property E. Tradable property

C. Intellectual property

Which of the following is true regarding the No Electronic Theft Act? A. It provides that it is legal for a person to infringe a copyright so long as financial gain is not involved. B. It provides that it is illegal for a person to reproduce, even for no financial gain, the copyrighted work of another; but there are only civil damages available, no criminal penalties. C. It provides that it is illegal for a person to reproduce, even for no financial gain, the copyrighted work of another; and criminal penalties including imprisonment for up to five years may be imposed. D. It provides that it is illegal for a person to reproduce, even for no financial gain, the copyrighted work of another; and criminal penalties in the form of fines, but not imprisonment, may be imposed. E. It provides that it is illegal for a person to reproduce, even for no financial gain, the copyrighted work of another; but the only remedy available would be an injunction requiring that the offender cease the infringement.

C. It provides that it is illegal for a person to reproduce, even for no financial gain, the copyrighted work of another; and criminal penalties including imprisonment for up to five years may be imposed. (The No Electronic Theft Act makes it illegal for a person not only to infringe a copyright for commercial purposes or financial gain but also to reproduce or distribute, for no financial gain, the copyrighted work of another. Criminal penalties for violating the act include fines of up to $250,000 and imprisonment for up to five years.)

A(n) ___ mark is one that requires imagination, thought, and perception to reach a conclusion as to the nature of the goods. A. Generic B. Descriptive C. Suggestive D. Conclusory E. Artful

C. Suggestive

Which of the following provides that a portion of a copyrighted work may be reproduced for purposes of criticism, comment, news reporting, teaching, scholarship, and research? A. The Limited Use Doctrine B. The Copyright Use Doctrine C. The Fair Use Doctrine D. The Trade Use Doctrine E. The Approved Use Doctrine

C. The Fair Use Doctrine

Which of the following is the way people and businesses are located on the web? A. Through product names B. Through Internet names C. Through domain names D. Through trademark names E. Through search engines

C. Through domain names

With which of the following does an organization website address end? A. .gov B. .edu C. .net D. .org E. .com

D. .org

A(n) ___ mark identifies a significant characteristic of the product but is not the common name of the product. A. Suggestive B. Arbitrary or fanciful C. Generic D. Descriptive E. Common

D. Descriptive

In which of the following orders of ascending strength may marks fall? A. Generic, suggestive, descriptive, arbitrary or fanciful. B. Descriptive, generic, suggestive, arbitrary or fanciful. C. Arbitrary or fanciful, generic, descriptive, suggestive. D. Generic, descriptive, suggestive, arbitrary or fanciful. E. Suggestive, generic, descriptive, arbitrary or fanciful.

D. Generic, descriptive, suggestive, arbitrary or fanciful.

Which of the following is a mark used in conjunction with a service? A. Product trademark B. Collective mark C. Certification mark D. Service mark E. Physical activity mark

D. Service mark (A service mark is a mark used in conjunction with a service, such as the name "AT&T" painted on a vehicle that provides repair services for AT&T phone users.)

Which of the following is the oldest treaty designed to protect artistic rights? A. The Universal Copyright Convention of 1952, as revised in 1971 B. The Paris Convention of 1883 C. The 1994 agreement on Trade-Related Aspects of Intellectual Property Rights D. The Berne Convention of 1886 E. The Geneva Convention of 1860

D. The Berne Convention of 1886

Which of the following administers international treaties pertaining to the protection of intellectual property? A. The United Nations Intellectual Property Association B. The Federal Intellectual Property Organization C. The National and World Intellectual Protection Agency D. The World Intellectual Property Organization E. There is no organization or agency with that responsibility

D. The World Intellectual Property Organization (The primary international protection for intellectual property is offered through multilateral conventions. These treaties are generally administered by the World Intellectual Property Organization, a specialized agency of the United Nations.)

Which of the following is true regarding whether the shape of a product or package may be a trademark? A. The shape of a product may be a trademark if it is nonfunctional but the shape of a package may not be a trademark. B. The shape of a product may be a trademark if it is functional but the shape of a package may not be a trademark. C. The shape of a product or package may be a trademark if it is functional. D. The shape of a product or package may be a trademark if it is nonfunctional. E. The shape of a package may be a trademark if it is nonfunctional, but the shape of a product may not be a trademark.

D. The shape of a product or package may be a trademark if it is nonfunctional.

A(n) ___ is a distinctive mark, word, design, picture, or arrangement that is used by a producer in conjunction with a product and tends to cause consumers to identify the product with the producer. A. Copyright B. Patent C. Trade secret D. Trademark E. Intellectual Property

D. Trademark

With which of the following does a business website address end? A. .gov B. .edu C. .net D. .org E. .com

E. .com

Which of the following is true regarding what may be the subject of a patent? A. Only products may be the subject of patents. B. Only processes may be the subject of patents. C. Only inventions may be the subject of patents. D. An invention may be the subject of a patent, but a plant produced by asexual reproduction may not be the subject of a patent. E. A product, a process, an invention, or a plant produced by asexual reproduction may be the subject of a patent.

E. A product, a process, an invention, or a plant produced by asexual reproduction may be the subject of a patent.

Once a trademark is registered today, when must it be renewed for the first time? A. Between the first and second year. B. Between the second and third year. C. Between the third and fourth year. D. Between the fourth and fifth year. E. Between the fifth and sixth year.

E. Between the fifth and sixth year.

If a trademark is registered, what may the owner obtain in the event of infringement from a person who used the trademark to pass off goods as being those of the mark owner? A. Damages only. B. An injunction prohibiting the infringer from using the mark only. C. An additional amount of damages computed as a multiplier of 5 times the original damages but nothing else. D. Damages, an injunction prohibiting the infringer from using the mark, and additional damages based on a multiplier of 5 times the original damages. E. Damages and an injunction prohibiting the infringer from using the mark.

E. Damages and an injunction prohibiting the infringer from using the mark.

Bob properly filed for a patent on a new machine with the U.S. Patent and Trademark Office. Alice who had been working on the same type of machine was furious when she learned about Bob's filing. She presented proof that she had actually invented the machine first but had not yet prepared the paperwork for filing at the time of Bob's filing. Assuming no wrongdoing on the part of either party and that they developed the machine independently, which of the following is the correct resolution of the dispute? A. Alice will win and possess all rights to the patent under common law because she first invented the machine. B. Bob will win and possess all rights to the patent under common law because he was the first to file for a patent. C. Under common law, Alice and Bob will share rights to the patent on a 50-50 basis. D. Under the America Invents Act, Alice will control rights to the patent because she was the first to invent. E. Under the America Invents Act, Bob will control rights to the patent because he was the first to file.

E. Under the America Invents Act, Bob will control rights to the patent because he was the first to file. (Under the America Invents Act, the first person to file a patent application in the United States for an invention will be deemed to have rights to the invention which is a change from the previous policy, where the first person to invent had the rights to the invention.)

A tying arrangement occurs when the holder issues a license to use a patented object only if the licensee agrees to buy some non-patented product from the holder.

true

Copyrights protect the expression of creative ideas.

true

Network Solutions Inc., is funded by the National Science Foundation and is responsible for registering domain names on the Internet.

true

Trade dress is entitled to the same protection as a trademark.

true

A person who applies for a domain name on the Internet must state in the application that the name will not infringe on anyone else's intellectual property rights.

true (Anyone seeking to register a domain name must now state in the application that the name will not infringe on anyone else's intellectual property rights and that the registrant intends to use it on a regular basis on the Internet.)

A teacher cannot be held liable for copyright infringement under the Fair Use Doctrine so long as copies are used only for educational purposes.

true (In determining whether the fair-use doctrine provides a valid defense to a claim of copyright infringement, Section 107 of the Copyright Act requires that the court weigh the following four factors: (1) The purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes. (2) The nature of the copyrighted work. (3) The amount and substantiality of the portion used in relation to the copyrighted work as a whole, and (4) The effect of the use on the potential market for or value of the copyrighted work.)

The laws of intellectual property protect property this is primarily the result of mental creativity rather than physical effort.

true (Intellectual property consists of the fruits of someone's mind. The laws of intellectual property protect property that is primarily the result of mental creativity rather than physical effort.)

An invention might be considered a trade secret.

true (Inventions and designs might be considered trade secrets.)