Business Law Chapter 8

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True or false: In the context of copyright infringement occurring abroad, a U.S. exporter may discover that it has little recourse against the infringer.

True

When willful misappropriation of a trade secret occurs, the owner may receive ______. Multiple choice question. an injunction and compensatory damages, but not punitive damages

an injunction, compensatory damages, and punitive damages

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

Global licensing agreements require ______ planning and ______ flexibility.

meticulous; great

One way for firms to maintain the secrecy of their information is to restrict access to trade secrets on a "______" basis

need-to-know

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

no

What constitutes "reasonable measures" to maintain secrecy varies with all of the following except the ______.

owner's effort to seek assistance from the Trade Secret Task Force The reasonable measure requires: a. likelihood that someone will discover the secret b. competitive importance of the secret c. costs of the measures

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

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

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

A ______ is a distinctive word, name, symbol, or device used by a business to distinguish its goods from those of its competitors.

trademark

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

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

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

A trade secret

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

America Invents; first-to-file

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 is correct regarding copyright registration in the United States?

Copyright owners are not required to register their copyrights in order to secure their rights

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

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 Because of the legal environment in the host country, the range of issues that may be governed by the technology transfer agreement is often severely limited.

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

False Reason:: No, even an inadvertent reproduction of these copyrighted materials can subject a firm to liability for copyright infringement.

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.

Intellectual property law grants ______ to creative individuals and businesses.

Limited monopolies

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

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

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

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

Temporary monopoly

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

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

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

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.

Under the Vanity Fair test, which of the following factors are used to determine when a United States citizen can be sued for violating U.S. trademarks abroad? (Check all that apply)

Whether the defendant's actions have a substantial effect on U.S. commerce Whether the defendant is a United States citizen whether relief would create a conflict with foreign law

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

absolute protection of intellectual property rights

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

actual damages profits earned by the infringer

Under United States copyright law, a copyright comes into existence ______.

automatically upon the creation of the work

Most patents involve inventions of ______ useful goods or ______ processes for producing such items.

commercially; novel

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

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

Many developing countries do not extend patent protection for inventions involving ______.

food or drugs

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

The Vanity Fair test is used only: ______.

when the defendant is a U.S. citizen


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