Chapter 8 - Intellectual Property Rights

A certification mark distinguishes products approved, or "certified," by the government.

False

A copyright owner must place a © or an ® on the work to have the work protected from copyright infringement.

False

A customer list is not a trade secret.

False

A generic term is not protected under trademark law unless it acquires a secondary meaning.

False

A patent and a copyright are examples of intellectual property, but a trademark is not an example of intellectual property.

False

A person who buys a copyrighted work cannot sell it to someone else.

False

A service mark distinguishes products used, or "put into service," by the government.

False

A trademark does not need to be registered to support a trademark infringement action.

False

Anyone who writes a book has automatic international copyright protection.

False

Foreign firms cannot obtain U.S. patent protection on items that they sell in the United States.

False

It is estimated that over 70 percent of the goods imported to the United States are counterfeit.

False

It is possible to copyright an idea.

False

Pricing information is not a trade secret.

False

The need to protect intellectual property is recognized in the Declaration of Independence.

False

Gas Up, Inc., designs, makes, and sells a fuel injection system that copies Hybrid Corporation's design without Hybrid's permis¬sion. This is most likely a. copyright infringement. b. patent infringement. c. trademark infringement. d. a theft of trade secrets.

b. patent infringement.

Billy opens a bicycle shop that sells an innovative new kind of bicycle. He decides to call the bicycles "Bicycles." Billy extensively markets his product, has a high sales volume and becomes well known for selling Bicycles. The term Bicycle a. is automatically protected against trademark infringement. b. receives no protection against trademark infringement. c. can be registered as a trademark to obtain protection against trademark infringement. d. can be registered as a certification mark.

b. receives no protection against trademark infringement.

From Southeast Asia, Tai Ltd. exports genuine trademarked goods to the United States. Tai also makes labels and packaging bearing another firm's trademark, ships the labels to another location, and then affixes them to an inferior product to deceive buyers. Tai sells these goods to retailers who are unaware that the marks are counterfeit. Under the Stop Counterfeiting in Manufactured Goods Act, it is a crime to a. import genuine trademarked goods. b. traffic in counterfeit labels, stickers, and packaging. c. sell counterfeit versions of brand-name products in foreign countries. d. unknowingly use a counterfeit mark on goods.

b. traffic in counterfeit labels, stickers, and packaging

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

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

Trek Transport Company uses a mark associated with its name to distinguish its services from those of other trucking firms. This mark is a. a certification mark. b. a collective mark. c. a service mark. d. a trade name.

c. a service mark.

Wendy works as a weather announcer for a TV station under the character name Weather Wendy. Wendy can register her name as a a. a certification mark. b. a collective mark. c. a service mark. d. a trade name.

c. a service mark.

Moving Advanced Technology Corporation can not claim a trademark in the phrase "Moving to the Market" if the phrase a. has a secondary meaning. b. is descriptive. c. is generic. d. is memorable.

c. is generic

Paula develops a new espresso machine that she names "Sure Shot." She also writes an operating manual for the machine. Paula can obtain trademark protection for a. the espresso machine. b. the "newness" of the espresso machine. c. the name "Sure Shot." d. the operating manual.

c. the name "Sure Shot"

Creation Worx, Inc., develops, makes, and markets new computer programs for businesses and consumers. Generally, copyright protection extends to a. all aspects of the software. b. the "look and feel" of the software. c. those parts of the software that can be read by humans. d. all of the choices.

c. those parts of the software that can be read by humans.

Beans Coffee & Cocoa Company makes and sells a chocolate-flavored coffee drink under the name "CoCoCafe." Darkroast Java, Inc., later markets a similar drink under the name "KoKoKafe." This is most likely a. copyright infringement. b. patent infringement. c. trademark infringement. d. a theft of trade secrets.

c. trademark infringement

Caramello Chip & Cookie Corporation (4C) obtains, and gives its employees, a list of the customers of Sugar & Spice Sales, Inc. (3S). Under the law that applies to trade secrets, 4C's conduct is actionable provided a. consumers are confused. b. 4C's conduct is intentional. c. 4C uses the list. d. 4C does not have 3S's permission to use the list.

d. 4C does not have 3S's permission to use the list.

Elvin publishes a book titled First Place, which includes a chapter from Frank's copyrighted book Olympic Winners & Losers. Elvin's use of the chapter is actionable provided a. consumers are confused. b. Elvin's use is intentional. c. Elvin's use reproduces Frank's chapter exactly. d. Elvin does not have Frank's permission.

d. Elvin does not have Frank's permission.

RiteMade Machinery, Inc., designs, makes, and sells a unique drill press. Steel Equipment Company copies the design without RiteMade's permission. Steel's conduct is actionable provided that a. consumers are confused. b. Steel's conduct is intentional. c. Steel's conduct reduces the value of RiteMade's design. d. RiteMade's design is patented.

d. RiteMade's design is patented.

Sayers is very clever and spends lots of time creating new things. Which of the following is not copyrightable? a. A sculpture of Sayers's dog b. A book about Sayers's business successes c. A movie about Sayers's life d. Sayers's idea for a new way to play the guitar

d. Sayers's idea for a new way to play the guitar

Which of the following cannot be registered as a trade name? a. Peach Blossom, Certified Public Accountant b. Apples & Oranges, Investment Partnership c. Banana Republic Clothing, Inc. d. Strawberries

d. Strawberries

Ross, an employee at Super Snowboard Company, is laid off. Before he exits Super's building, he e-mails the company's marketing campaign to Winter Sports Corporation, Super's competitor, without permission. This is a. copyright infringement. b. patent infringement. c. trademark infringement. d. a theft of trade secrets.

d. a theft of trade secrets

Trevor's operates The Spicy Chocolatier Café chain of restaurants. "The Spicy Chocolatier Café" is a. a certification mark. b. a collective mark. c. a service mark. d. a trade name.

d. a trade name

Riley invents a new valve to cap undersea oil spills. He names the valve "Great Catch." He also writes the installation manual to be included with each valve. Riley can obtain copyright protection for a. the valve. b. the "newness" of the valve. c. the name. d. the installation manual.

d. the installation manual

The idea for "On Your Mark," a computer game featuring world-class athletic competition in extreme and unique contests, is protected by a. copyright law. b. patent law. c. trademark law. d. trade secrets law.

d. trade secrets law

A suggestive use of ordinary words may be trademarked.

true

A beverage company that competes with Coca-Cola Company cannot call its products "Koke."

True

A copy does not need to be exactly the same as the original to infringe a copyright.

True

A fanciful use of ordinary words may be trademarked.

True

A license permits the use of another's intellectual property for certain limited purposes.

True

A marketing technique can be a trade secret.

True

A trade name can be protected if it is unusual or fanciful.

True

A trademark can be diluted by the use of a similar mark.

True

By using another's trademark, a business could lead consumers to believe that its goods were made by the other business.

True

Copyright protection is automatic—registration is not required.

True

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

True

In the European Union, the period of royalty protection for musicians is seventy years.

True

Information that is not or cannot be protected under trademark, patent, or copyright law may be protected under the law of trade secrets.

True

Patent infringement is a tort.

True

The 1995 Federal Trademark Dilution Act allowed trademark owners to bring suit in federal court for trademark dilution.

True

The Anti-Counterfeiting Trade Agreement applies to counterfeit physical goods and to pirated copyrighted works being distributed via the Internet.

True

The TRIPS agreement established standards for the international protection of intellectual property rights for computer programs.

True

The owner of intellectual property may put restrictions on the use of the intellectual property in a license agreement.

True

The states and the federal government provide for registration of trademarks.

True

To be patentable, an invention, discovery, or design must be novel, useful and not obvious in light of current technology.

True

Trade names have the same legal protection as trademarks.

True

Ewa is Diamond Financial Planners' most productive employee. She is dissatisfied with the commission structure, however, so she quits to work for Feldstar Investments, Inc. When she leaves Diamond's employ, she takes her list of Diamond's clients so that she can induce them to switch to Feldstar. Trade secrets law covers a. Diamond's list of clients. b. Ewa's performance. c. Feldstar's commission structure. d. none of the choices.

a. Diamond's list of clients

Mary Kate Corporation allows Ashley Company to use Mary Kate's trademark as part of Ashley's domain name. This is a. a license. b. a likelihood of consumer confusion. c. counterfeiting. d. trademark dilution.

a. a license

Li'l Canine Company (LCC) uses a trademark that neither LCC nor anyone else has registered with the government. Under federal trademark law, LCC a. can register the mark for protection. b. cannot register a mark that has been used in commerce. c. has committed trademark infringement. d. must put off registration until the mark is out of use for six months.

a. can register the mark for protection

Bubbly Cola features Sparkly Cola's trademark without its owner's permission. Bubbly's use of the mark is actionable provided a. consumers are confused. b. Bubbly's use is intentional. c. Bubbly's use reduces the value of Sparkly's mark. d. Sparkly's mark is registered.

a. consumers are confused

In its ads for athletic shoes, Sleek Feet LLC uses a trademark that is similar, but not identical, to the famous, registered mark of Trend Flash, Ltd. Sleek Feet's unauthorized use of the mark constitutes trademark dilution, provided that a. consumers are confused. b. Sleek Feet and Trend Flash are competitors. c. Sleek Feet's use is intentional. d. Sleek Feet's use is likely to impair the distinctiveness of Trend Flash's mark.

a. consumers are confused

Mace copies Nick's book, Mumbai Monsoon, in its entirety and sells it to Parkland Books, Inc., without Nick's permission. Parkland publishes it under Mace's name. This is a. copyright infringement. b. fair use. c. licensing. d. protected expression.

a. copyright infringement

Go! is a handheld video game featuring races between imaginary creatures and vehicles. The graphics used in the game are protected by a. copyright law. b. patent law. c. trademark law. d. trade secrets law.

a. copyright laww

In 2012, Online Marketing Corporation registers its trademark as provided by federal law. After the first renewal, this registration a. is renewable every ten years. b. is renewable every twenty years. c. runs for the life of the corporation plus seventy years. d. runs forever.

a. is renewable every ten years.

James buys a copy of the book Downpour. Later, after reading the book, James sells it to his sister. Under the first sale doctrine, James's sale of the book is a. legal. b. legal only if the copyright has expired. c. legal only if he sells it for less than he paid for it. d. illegal.

a. legal

Stormclouds Inc. makes and markets its U.S. patented Tempest Tablet in the United States. Squalls Ltd., a Chinese firm, begins making and marketing the same product in China as Outburst Pad without Stormclouds's permission. Squalls is a. not guilty of patent infringement. b. guilty of patent infringement. c. guilty of trademark infringement. d. in violation of the America Invents Act.

a. not guilty of patent infringement

New Apps Company develops "Browser Lite" software, which speeds the display of graphics on Web sites. Browser "Lite" has the most copyright protection under a. the Berne Convention. b. the Paris Convention c. the TRIPS Agreement. d. the Madrid Protocol.

a. the Berne Convention

Trademarks are protected from use on noncompeting goods by a. the Federal Trademark Dilution Act. b. the America Invents Act. c. the Anticybersquatting Consumer Protection Act. d. the Copyright Act.

a. the Federal Trademark Dilution Act.

Ric designs a new tablet computer that he names "Sci Phi." He also writes the operating manual to be included with each final product. Ric can obtain patent protection for a. the tablet computer. b. the "newness" of the tablet computer. c. the name. d. the operating manual.

a. the tablet computer

Zoe invents "All for One," new business inventory control software, and applies for a patent. If Zoe is granted a patent, it will protect her product a. for ten years. b. for twenty years. c. for the life of the inventor plus seventy years. d. forever.

b. for twenty years

Ryan invents a pen that digitally "remembers" what is written or drawn with it. To obtain a patent for the pen, Ryan does not have to show that it is a. novel. b. marketable. c. useful. d. not obvious in light of current technology.

b. marketable

Sights Unseen, Inc., (SUI) sells telescopes with distinctively designed lenses and mirrors. Later, without SUI's permission, Telescopes Etc. Corporation begins to sell scopes with identical structures of lenses and mirrors. This is most likely a. copyright infringement. b. patent infringement. c. trademark infringement. d. not infringement.

b. patent infringement