Chapter 8 - Licensing and Intellectual

In 2013, the ______ Act amended United States patent law to be based on the "______" rule.

America Invents; first-to-file

Which of the following is a basic type of intellectual property?

A trade secret

17. A distinctive word, name, symbol or device used by a business to distinguish its goods from those of its competitors is known as a(n):

A. Copyright B. Patent C. Trade secret D. Trademark D

18. A patent holder's rights over a patented product generally ends when it is sold to a lawful purchaser under the:

A. Economic Use Doctrin B. Fair Use Doctrin C. Reasonable Use Doctrine D. Patent Exhaustion Doctrine D

12. Dan, an employee of ABC Company, endorses and recommends the products of ABC Company on its online website. Which of the following is true regarding Federal Trade Commission regulation, if any, of his activity.

A. Federal Trade Commission guidelines require that people get prior approval from the Commission prior to endorsing a producer or service provider B. Federal Trade Commission guidelines prohibit an employee from endorsing a product or service provided by the employee's employer C. There are no Federal Trade Commission guidelines addressing such activity D. Federal Trade Commission guidelines require that people endorsing a product or service must disclose their affiliation with the producer or service provider D

16. Which of the following protects against unauthorized reproduction of creative works such as books, plays, musical compositions and films?

A. Service marks B. Trademarks C. Copyrights D. Patents C

11. Which of the following was the result in Authors Guild v. Google, the case in the text involving whether Google violated the copyright right to authors by scanning books and establishing a publicly available search function making snippets of text available?

A. That the activities of Google augmented public knowledge and that Google did not lose the protection of the fair use doctrine based on its profit motivation B. That Google violated the rights of the book copyright holders because Google had no right to scan the contents of publications C. That Google violated the rights of the book copyright holders because while Google had the right to scan the books, it had no right to institute a search function available to the public D. That Google did not violate the rights of the book copyright holders because, while the fair use doctrine was inapplicable, Google was involved in digital imaging, a protected activity. A

10. Which of the following is not considered in determining whether the fair use doctrine applies in relation to the law of copyright protect?

A. The effect on the market B. The purpose and character of the use C. The nature of the copyrighted work D. The age of the copy right D

15. Which of the following is true regarding trademark dilution laws?

A. They protect distinctive or famous marks even when confusion is not likely to occur B. They were designed to protect consumers when confusion is likely to occur C. They apply only when the alleged infringer is located outside the borders of the US D. They were designed to protect businesses only making use of a famous trademark A

13. Which of the following never expires?

A. Trade Secret B. Copyright C. Patent D. Trademark A

14. Which of the following creates a temporary monopoly to encourage the development of new technologies?

A. Trademark B. Trade Secret C. Copyright D. Patent D

Which of the following is correct regarding the extraterritorial reach of United States trademark laws?

Although courts have recognized that such laws may reach extraterritorial conduct, they have never adopted a precise test to govern such cases.

In a trademark infringement lawsuit, courts use which of the following factors to determine whether a likelihood of consumer confusion exists?

The defendant's intent in adopting its mark

Which of the following are risks and drawbacks associated with a technology licensing agreement? (Check all that apply)

The licensee could become a competitor. The licensee may produce inferior products or provide inferior service. The licensor may be cheated out of large sums of money.

Which of the following is correct regarding a licensing agreement?

The person who owns the intellectual property is known as the licensor.

All of the following are benefits of licensing for the licensee except ______.

absolute protection of intellectual property rights

When willful misappropriation of a trade secret occurs, the owner may receive ______.

an injunction, compensatory damages, and punitive damages

Trademark rights are infringed when a party uses a mark in a way that is likely to cause ______.

consumer confusion

If a defendant had knowledge of and materially contributed to another's direct copyright infringement, ______ copyright infringement has occurred.

contributory

The ______ copyright infringement theory of recovery has been used effectively against several suppliers of peer-to-peer file sharing software that has been used to illegally download copyright content from the Internet.

contributory

If foreign goods are likely to infringe upon United States trademark rights, ______ may block their importation.

customs officials

Many ______ nations have enacted legislation designed to protect local ______ from the superior bargaining strength possessed by foreign businesses.

developing; licensees

When a mark is famous, uses of the same mark by others is likely to ______ its ______.

dilute; distinctiveness

If a plaintiff establishes ownership of a valid copyright and copying of constituent elements of the work that are original, ______ copyright infringement has occurred.

direct

Trademarks must be ______ to merit legal protection.

distinctive

When negotiating an international licensing agreement licensors are justifiably most wary about ______.

entrusting their intellectual property to overseas companies

A patent provides its owner with the ______ right to prevent others from making, using, offering for sale, selling, or importing the patented invention in the United States during the term of the patent without the patent owner's consent.

exclusive

The first sale doctrine is also known as copyright ______.

exhaustion

Consumers associate ______ marks with only one company.

famous

Patent exhaustion is also known as the ______ doctrine.

first sale

The Copyright Act states that a purchaser of copyrighted material "lawfully made...is entitled, without the authority of the copyright, to sell or otherwise dispose of the possession of that copy." This is known as the ______ doctrine.

first sale

For most of its history, United States patent law as based on the "______" rule.

first-to-invent

Under United States law, patent ______ occurs when a person makes, uses, offers for sale, sells, or imports the patented invention in the United States without the patent holder's authorization.

infringement

A business may encourage high levels of ______ on its own social media sites in order to better understand its ______.

interactivity; customer base

Frequently, an intellectual property owner has few options other than to ______ its technology to others.

license

If a well-known computer manufacturer installs a "Windows" operating system on its laptops, it is most likely doing so pursuant to a ______ agreement.

licensing

A ________ agreement permits the owner of intellectual property to grant a third party a license to use or sell the intellectual property in return for _______.

licensing; compensation

A business can quickly penetrate a market without substantial financial and legal risks by _______ its intellectual property using a _________ agreement.

licensing; technology transfer

In a licensing agreement, the ______ is the party who owns the intellectual property who, in return for compensation, agrees to license the intellectual property to the ______ who can produce, use, or sell it.

licensor; licensee

Global licensing agreements require ______ planning and ______ flexibility.

meticulous; great

Generally, ______ patent infringement occurs under United States law when a product patented in the U.S. is made and sold in another country.

no

Licensing agreements require a careful ______ selection process that clearly identifies each firm's ______ and details how each plans to meet the other's ______.

partner; objectives; expectations

Businesses that hastily share their core technology risk ______.

permanently losing it

Although the United States legal system supports competitive markets, it also values ______.

private research and development

Under United States copyright law, a prevailing copyright holder may collect ________. (Check all that apply)

profits earned by the infringer actual damages

Vicarious copyright infringement theory is an outgrowth of the doctrine of ______.

respondeat superior

An individual is not liable for misappropriation of a trade secret if she discovers the trade secret using a ______ process.

reverse engineering

A licensor can avoid misunderstandings about payments with a regular _____ of the licensee's business records.

royalty audit

A ______ is used to describe services.

service mark

To serve their ______ function, trademarks must be distinctive to qualify for legal protection.

source-identifying

A ________ agreement licenses intellectual property to a third party.

technology transfer

A ______ is provided to a patent holder as an incentive to encourage people to invest in and develop innovative products and technologies.

temporary monopoly

The copyright in a work is generally owned by the ______.

the person(s) who creates the work

In terms of monetary damages in a patent infringement case, the patent holder is entitled to up to ______.

three times the losses caused by the infringement

In the United States, ______ patents are available for processes, machines, articles of manufacture, compositions of matter, and any improvements thereon.

utility

Copyright owners may assert a claim for ______ copyright infringement against any party who (1) has the right and ability to supervise a person engaged in direct copyright infringement and (2) has a direct financial benefit from the person's direct infringement.

vicarious

7. T/F Abstract ideas are not protected by patents.

True

Which of the following laws protects the creative expression in works that have no other function than to be observed?

Copyright

Which of the following protect nonfunctional design features of products?

Design patents

Which of the following is a defense to a copyright infringement claim?

Fair use

2. T/F If the trademark becomes used as a generic term by the public, a business may still keep its trademark protection.

False

5. T/F The United States follows the "first to invent" rule with regards to patents

False

6. T/F A trademark is eligible for registration in the absence of prior commercial use

False

8. T/F To obtain a copyright, the author must register the protected work with the appropriate government office

False

9. T/F Copyrighted works are protected only as long as the author is alive

False

True or false: Only an intentional reproduction of copyrighted materials can subject a firm to liability for copyright infringement.

False

True or false: Section 271(f) of the Patent Act provides that infringement does not occur when one supplies from the United States, for combination abroad, a patented invention's components.

False

True or false: The range of issues that may be governed by an international technology transfer agreement is generally broad and far-reaching.

False

Which of the following is correct regarding the intellectual property aspects of social media?

Firms should train employees on proper and improper uses of the firm's own trademarks and copyright material.

Which of the following is a classification for the inherent distinctiveness of a mark?

Generic

Which of the following is correct regarding the need of an intellectual property owner to license its technology to others?

In order to do business in another country, a foreign intellectual property owner may be compelled to license its technology to a local firm.

What are the two types of trademark distinctiveness?

Inherent and acquired

Which of the following is a requirement for information to qualify for trade secret protection?

It must be subject to reasonable measures to maintain its secrecy.

To establish direct copyright infringement, a plaintiff must prove which of the following? (Check all that apply)

Ownership of a valid copyright Copying of constituent elements of the work that are original

Which of the following occurs when a patent holder sells all her rights in the patent to a lawful purchaser?

Patent exhaustion

Which of the following are the four (4) types of intellectual property?

Patents, trademarks, copyrights, and trade secrets

Name all the benefits of licensing for the licensor. (Check all that apply)

Receiving royalty payments Minimizing the financial risks of manufacturing Penetrating foreign markets

Which of the following are factors for evaluating whether a use is a fair use according to the copyright act? (Check all that apply)

The purpose and character of the use The amount and substantiality of the portions used The nature of the copyrighted work

Which of the following are factors for evaluating whether a use is a fair use according to the copyright act? (Check all that apply)

The purpose and character of the use The nature of the copyrighted work The amount and substantiality of the portions used

When drafting an international licensing agreement, a licensor should consider which of the following as principal considerations? (Check all that apply)

The rights and duties of the parties if the agreement is terminated The identification of potential conflicts The establishment of mechanisms for potential conflicts

Which of the following are descriptive terms that identify businesses themselves, rather than their products or services?

Trade names

Which of the following laws provide legal protection for confidential, proprietary information?

Trade secret

1. T/F Charles, a US business owner, owns a trademark for "Squish" a hot new line of toys. Upon entering the foreign market, charles discovers that a local store in London also owns the trademark for "Squish." Because of Charles' trademark, a US court would likely rule that the London store does have a legal right to the term "Squish"

True

3. T/F If an owner of intellectual property allows another to use that property, not all protection is forfeited.

True

4. T/F Any incremental patent changes used by a business will not increase the time of protection awarded by a patent

True