Ch. 8 Intellectual Property Rights_EXAM 2

trademark

A distinctive word, symbol, or design that identifies the manufacturer as the source of particular goods and distinguishes its products from those made or sold by others.

collective mark

A mark used by members of a cooperative, association, union, or other organization to certify the region, materials, mode of manufacture, quality, or other characteristic of specific goods or services.

certification mark

A mark used by one or more persons, other than the owner, to certify the region, materials, mode of manufacture, quality, or other characteristic of specific goods or services.

trade name

A name that a business uses to identify itself and its brand. A trade name that is the same as the company's trademarked product is protected as a trademark, and unique trade names are protected under the common law.

patent

A property right granted by the federal government that gives an inventor an exclusive right to make, use, sell, or offer to sell an invention in the United States for a limited time.

license

An agreement by the owner of intellectual property to permit another to use a trademark, copyright, patent, or trade secret for certain limited purposes. In the context of real property, a revocable right or privilege to enter onto another person's land.

A copy must be exactly the same as the original to infringe a copyright. True False

False

A list of customers cannot be a trade secret. True False

False

A party who unintentionally uses the trademark of another is not liable for trademark infringement. True False

False

A trademark must be registered to support a trademark infringement action. True False

False

An applicant cannot register a trademark on the basis of an intention to use the mark in commerce. True False

False

An arbitrary use of ordinary words may not be trademarked. True False

False

In the United States, a patent is given to the first person to invent a product or process. True False

False

Patent infringement occurs only if an invention is copied in its entirety. True False

False

Pricing information cannot be a trade secret. True False

False

The Anti-Counterfeiting Trade Agreement (ACTA) applies only to counterfeit physical goods, such as medications. True False

False

The theft of trade secrets is not a crime unless a contract is breached. True False

False

The unauthorized use of a "famous" trademark is prohibited only if the unauthorized user competes directly with the owner of the mark. True False

False

To establish dilution, an alleged infringer's use of a "famous" mark must actually reduce the value of the mark. True False

False

Trademark dilution requires proof that consumers are likely to be confused by the unauthorized use of the mark. True False

False

Under the Anti-Counterfeiting Trade Agreement (ACTA), border officials of member nations must get a warrant from an international governing body before searching commercial shipments of imports and exports. True False

False

EY corporation sues Robert for patent infringement. The court finds that Robert willfully infringed EY's patent and awards remedies. For this case, which of the answers listed is not a possible remedy? a) Treble damages. b) Royalties. c) Injunction. d) Prison for Robert.

d) Prison for Robert.

The international law that prohibits member nations from discriminating against foreign owners of intellectual property rights is the: a) Digital Millennium Copyright Act. b) Madrid Protocol. c) Berne Convention. d) Trade-Related Aspects of Intellectual Property Rights agreement.

d) Trade-Related Aspects of Intellectual Property Rights agreement.

Employees could be liable for the misappropriation of trade secrets if they: a) send protected confidential information to a competitor by email. b) walk out with the information on a flash pen drive. c) disclose protected confidential information by misusing a company's social media accounts. d) all of the above actions could constitute misappropriation. e) none of the above actions could constitute misappropriation.

d) all of the above actions could constitute misappropriation.

Almost anything is patentable, except: a) the laws of nature. b) natural phenomena. c) abstract ideas. d) all of these choices.

d) all of these choices.

Under Section 102 of the Copyright Act, copyright protection is specifically excluded for any: a) idea. b) procedure. c) process. d) all of these choices.

d) all of these choices.

Information protected under the law of trade secrets is protected for: a) life of the owner plus seventy years. b) twenty years. c) ten years. d) as long as secrecy is maintained.

d) as long as secrecy is maintained.

Standard Factory Machinery, Inc., obtains a patent on a drill press. Total Equipment Company (TEC) copies the design. This patent is infringed: a) only if TEC copies the press in its entirety and sells it. b) only if TEC sells the press in the market. c) only if TEC copies the press in its entirety. d) regardless of whether TEC copies the press in its entirety or sells it.

d) regardless of whether TEC copies the press in its entirety or sells it.

Copy Products, Inc. uses, in its ads, a trademark that is similar, but not identical, to a distinctive mark used by Durable Goods, Inc. Copy's use of the mark is actionable: a) only if consumers are confused. b) only if Copy and Durable are competitors. c) only if consumers are confused and Copy and Durable are competitors. d) regardless of whether consumers are confused or Copy and Durable are competitors.

d) regardless of whether consumers are confused or Copy and Durable are competitors.

Ernie's Good Eatin' Cafe uses a distinctive decor, layout, menu, and style of service. This restaurant's image and overall appearance is: a) a service mark. b) a collective mark. c) a certification mark. d) trade dress.

d) trade dress.

intellectual property

Property resulting from intellectual and creative processes.

copyright

The exclusive right of an author or originator of a literary or artistic production to publish, print, sell, or otherwise use that production for a statutory period of time.

trade dress

The image and overall appearance ("look and feel") of a product. Basically, trade dress is subject to the same protection as trademarks.

A formula for a chemical compound can be a trade secret. True False

True

A person can reproduce copyrighted material for purposes such as teaching, including multiple copies for classroom use, without paying royalties, so long as the activity is noncommercial. True False

True

A personal name is protected under trademark law if it acquires a secondary meaning. True False

True

Each member country of the TRIPS agreement must include in its domestic laws broad intellectual property rights. True False

True

There are no registration requirements for trade secrets. True False

True

Trade dress has the same legal protection as trademarks. True False

True

Ordinarily, you may not reproduce a copyrighted object without the owner's permission. The exception to this general rule is contained in the: a) "fair use" doctrine. b) appropriation doctrine. c) Lanham Act. d) "fair copy" doctrine.

a) "fair use" doctrine.

AAA Cola features Best Cola's trademark without its owner's permission. Cartel Company does not make or bottle AAA Cola, but distributes and sells it. Dian buys a bottle of AAA Cola. The mark has been used by: a) AAA. b) Best. c) Dian. d) none of the above.

a) AAA.

Which of the following may not be copyrighted? a) An idea b) A photograph c) A novel d) A painting

a) An idea

Joey reproduces Mina's copyrighted work without paying royalties. Joey is most likely exempted from liability for copyright infringement under the "fair use" doctrine if: a) Joey's use has no effect on the market for Mina's work. b) Joey distributes the copies freely to the public. c) Joey copies the entire work. d) Joey's use is for a commercial purpose.

a) Joey's use has no effect on the market for Mina's work.

Which of the following is not an international agreement concerning intellectual property rights? a) The Lanham Act b) The Berne Convention c) Paris Convention of 1883 d) The Madrid Protocol

a) The Lanham Act

Canada and the United States are signatories of the Berne Convention. Doug, a citizen of Canada, publishes a book first in Canada and then in the United States. Doug's copyright must be recognized by: a) all of the signatories of the Berne Convention. b) Canada and the United States only. c) Canada only. d) none of the signatories of the Berne Convention.

a) all of the signatories of the Berne Convention.

Under the Anti-Counterfeiting Trade Agreement (ACTA), member nations: a) are required to establish border measures that allow officials, on their own initiative, to search commercial shipments of imports and exports for counterfeit goods. b) are prohibited from conducting random border searches of electronic devices not based on probable cause. c) are not allowed to keep the suspect goods unless the authorities can prove the goods in transit are counterfeit. d) do not have authority to make requests of online service providers concerning the identity of suspected trademark and copyright infringers without probable cause.

a) are required to establish border measures that allow officials, on their own initiative, to search commercial shipments of imports and exports for counterfeit goods.

Kari buys a copy of the newest edition of her Business Law textbook. At the end of the semester, she wants to sell it to her roommate. Under Copyright law, Kari: a) can sell the book to her roommate legally under the First Sale Doctrine. b) cannot sell the book to her roommate legally under the Fair Use Doctrine. c) cannot sell the book to her roommate legally because the author holds the exclusive right to distribute the work. d) can sell the book to her roommate legally because distribution is not one of the rights of copyright law.

a) can sell the book to her roommate legally under the First Sale Doctrine.

Donna makes and distributes copies of Every Good Boy Does Fine, a movie copyrighted by Great Films Corporation, without Great Films' permission. Donna may be liable for: a) damages, fines, and/or imprisonment. b)damages only. c) fines or imprisonment only. d) nothing.

a) damages, fines, and/or imprisonment.

In 2010, Sara writes Terror at the Track, a novel about racecar driving. Sara does not register the work with the appropriate government office. Under federal copyright law, Sara's work is protected: a) for the life of the author plus seventy years. b) for twenty years. c) for ten years. d) forever.

a) for the life of the author plus seventy years.

Fiona invents a new deep-sea fishing net, which she names "Great Catch." She also writes the operating manual to be included with each net. Fiona could obtain copyright protection for: a) the manual only. b) the name only. c) the net only. d) the manual, the net, and the name.

a) the manual only.

If a firm makes, uses, or sells another's patented design, product, or process without the patent owner's permission, the firm commits: a) the tort of patent infringement. b) the crime of license infringement. c) the tort of license infringement. d) the crime of patent infringement.

a) the tort of patent infringement.

Delta, Inc., copies Eagle Corporation's patented invention in its entirety. Delta sells it as its own invention to First Products Company, without Eagle's permission. Eagle's patent is infringed by: a) Delta and First. b) Delta only. c) First only. d) neither Delta nor First.

b) Delta only.

Target Marketing, LLC., a new start-up business, has developed a way to identify quickly those who might be in need of marketing services, but it sees the potential of its method to expand to uses for other businesses. What should Target Marketing do to protect its new business process? a) Get a copyright b) Get a patent c) Get a license d) All of these choices

b) Get a patent

One form of international protection for intellectual property comes from which treaty? a) The TRIMS agreement b) The TRIPS agreement c) The Geneva Accords d) The Lugano Convention

b) The TRIPS agreement

Modern Clothing, Inc. and National Denim Corporation use the mark "Made by Members of the U.S. Textile Workers Union" on the tags of their products to indicate the participation of the union in the manufacture. Modern and National are not in business together and do not own this mark. The mark is: a) a service mark. b) a collective mark. c) a certification mark. d) trade dress.

b) a collective mark.

In 1936 Margaret Mitchell wrote Gone with the Wind. Mitchell received the National Book Award in 1936 and a Pulitzer Prize for fiction in 1937. Mitchell died in 1949 without writing a sequel. For years, fans wondered what happened to the characters in the original novel but no one could write a sequel without the permission of Mitchell's family. This is because the copyright holder has exclusive rights to create: a) public displays. b) derivative works. c) copies. d) musical works.

b) derivative works.

Phil invents "PhutureNow," new Web site design software, and applies for a patent. If Phil is granted a patent, his invention will be protected: a) for the life of the inventor plus seventy years. b) for twenty years. c) for ten years. d) forever.

b) for twenty years.

Jiffy Software, Inc., a U.S. manufacturer, files a suit against Kawa, Ltd., a Japanese software maker, for the infringement of intellectual property rights under Japan's national laws. Under the TRIPS agreement, Jiffy is entitled to receive: a) better treatment than Kawa. b) the same treatment as Kawa. c) worse treatment than Kawa. d) nothing.

b) the same treatment as Kawa.

Under the Restatement of Torts, persons who disclose or use another's trade secret, without authorization, are liable to that other party if: a) inadequate steps were taken by the owner to guard the information. b) their disclosure or use constitutes a breach of a duty owed to the other party. c) they properly discovered the secret as part of their duties. d) the information was properly registered with the USPTO.

b) their disclosure or use constitutes a breach of a duty owed to the other party.

Suppose that when you enter an "On the Border" Mexican restaurant, you see a distinctive interior, a distinctive menu, and a wait staff wearing distinctive attire. This combination of things creates a unique ambience, known in legal terms as a: a) trademark. b) trade dress. c) trade name. d) trade secret.

b) trade dress.

Trademark dilution laws protect against the: a) unauthorized use of a patent. b) unauthorized use of a mark regardless of whether the user is a competitor. c) unauthorized use of a mark by a competitor only. d) authorized use of trade dress, in some cases.

b) unauthorized use of a mark regardless of whether the user is a competitor.

If a U.S. citizen writes a book, the U.S. author's copyright in the book must be recognized by all countries that signed the: a) Madrid Protocol. b) TRIPS agreement. c) Berne Convention. d) Anti-Counterfeiting Trade Agreement.

c) Berne Convention.

Julie, a teacher, wants to use a small portion of a novel for use in class to discuss the different perspectives of environmentalism. Use of this material likely is allowable under the: a) Educational Practices Doctrine. b) First Sale Doctrine. c) Fair Use Doctrine. d) First Amendment.

c) Fair Use Doctrine.

Rita copies Sam's book, Two for the Show, in its entirety and sells it to USA Books, Inc., without Sam's permission. USA publishes it under Rita's name. Sam's copyright is infringed by: a) Rita only. b) USA only. c) Rita and USA. d) none of these choices.

c) Rita and USA.

The "Good Housekeeping Seal of Approval" on a product is an example of a: a) patent. b) strong mark. c) certification mark. d) license.

c) certification mark.

Blog magazine buys and publishes an article by Cleo. Later, Blog markets a Web site database that contains a compilation of Blog articles, including Cleo's, without her consent. Blog has committed: a) theft of trade secrets. b) patent infringement. c) copyright infringement. d) trademark infringement.

c) copyright infringement.

Carol buys Dan's book Expedition!, photocopies more than half of it without his permission, and sells the copies without paying him royalties. This is an example of: a) licensing. b) fair use. c) copyright infringement. d) protected expression.

c) copyright infringement.

The Anti-Counterfeiting Trade Agreement: a) is a U.S. law designed to prosecute foreign companies who violate U.S. patents. b) is a U.S. law designed to prosecute foreign companies who violate U.S. copyrights. c) is an international treaty to combat global piracy. d) has not yet been ratified as an international treaty.

c) is an international treaty to combat global piracy.

Juan develops a new bike lock to prevent theft of bicycles on college campuses. In order to protect his invention, he must file a patent. In order to file that application, he must show that his bike lock is: a) original, functional, and market tested. b) made of a material not previously used in bike locks. c) novel, useful, and not obvious. d) creative, documented, and authentic.

c) novel, useful, and not obvious.

A government grant that gives an inventor the exclusive right or privilege to make, use, or sell his or her invention for a limited time period is a: a) certification. b) license. c) patent. d) copyright.

c) patent.

Businesses may protect their trade secrets by: a) applying for a copyright. b) registering them with the U.S. Patent Office. c) requiring that all employees must sign confidentiality agreements. d) making sure the information is trademarked.

c) requiring that all employees must sign confidentiality agreements.

Peak Corporation hacks into Quality Data Company's computers and downloads confidential business data. There is no contract between Peak and Quality regarding the data. This is: a) patent infringement. b) trademark infringement. c) trade secrets theft. d) none of the above.

c) trade secrets theft.

After the patent period ends, anyone can make, sell, or use an invention: a) by applying for a new patent on the invention. b) by paying a fee to the patent holder. c) without paying the patent holder. d) by applying to the federal government for a license to use the invention.

c) without paying the patent holder.

trade secret

A formula, device, idea, process, or other information used in a business that gives the owner a competitive advantage in the marketplace.

Federal law prohibits the unauthorized commercial use of a trademark. True False

True

The process behind the production of "Fast Pace," a racecar video game, is protected by: a) trademark law. b) patent law. c) copyright law. d) trade secrets law.

d) trade secrets law.

A collective mark is used to distinguish the services of one person or company from those of another. True False

False

A trade secret might include which of the following? a) A customer list b) A distinctive company logo c) A product name d) The appearance of a clothing store

a) A customer list

The structure, sequence and organization of a computer program is protected by copyright, but for the most part, not its: a) general appearance on screen. b) print outs. c) binary-language object code. d) source code.

a) general appearance on screen.

A patent for a new invention will last for: a) twenty years. b) fifteen years. c) ten years. d) fifty years.

a) twenty years.

Jami invents a new machine that automatically weeds small gardens. He obtains a patent for his invention from the U.S. government. Louisa buys one of Jami's machines, pulls it apart, copies his work, and starts producing and selling her own version of the amazing "Weed Eater." Louisa: a) has committed a wrongful appropriation. b) has infringed on Jami's patent rights. c) has done nothing wrong--competition is a part of our market economy. d) has violated Jami's trade dress.

b) has infringed on Jami's patent rights.

Unlike copyright protection, protection of trade secrets extends to: a) advertising jingles. b) ideas and their expression. c) computer programs. d) audiovisual works.

b) ideas and their expression.

A trade secret is anything that makes an individual company unique and that: a) is stored on the company's computers. b) would have value to a competitor. c) can be copyrighted. d) is known only to companies in the same industry.

b) would have value to a competitor.

Cassandra is starting a new karate dojo. She likes the phrase "Just do it!" that the company Nike uses in its ads and wants to adopt the slogan for her business. Should she do this? Why or why not? a) No, she shouldn't, because using that slogan would constitute copyright infringement. b) No, she shouldn't, because the Nike has a patent on that slogan. c) Yes, she should. It will be a catchy slogan for her new business. d) No, she shouldn't, because this well-known phrase is likely to be recognized as a trademark.

d) No, she shouldn't, because this well-known phrase is likely to be recognized as a trademark.

For the willful misappropriation of trade secrets under the Uniform Trade Secrets Act, a plaintiff only may recover: a) punitive damages. b) court costs. c) attorneys' fees. d) monetary damages. e) all of the above remedies are recoverable.

e) all of the above remedies are recoverable.

service mark

A mark that is used to distinguish the services of one person or company from those of another.

One of the goals of the Anti-Counterfeiting Trade Agreement (ACTA) treaty is to provide a legal framework to combat counterfeiting. True False

True

The Madrid Protocol aims to cut the cost and time required to protect trademarks internationally. True False

True

The Madrid Protocol concerns trademarks. True False

True

The TRIPS agreement includes copyright protection for computer programs. True False

True