Exam 18: Knowledge-Based Businesses and Intellectual Property

Carlos, a baseball fanatic, has spent most of his adult life in a workshop, trying to invent a better baseball bat. Finally, after having spent many years and most of his savings, Carlos succeeded in creating a bat out of an aluminum alloy that results in sending the baseball further than if the ball was hit with a standard bat. Ecstatic, Carlos decides to hire a patent agent to help him secure a patent. But he contacts you for advice about his options for exploiting his patent, and to discuss the risks and benefits of each potential avenue.

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Question 1

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Carlos does not appear to be in great financial shape. As such, he may need a large amount of money in a relatively short amount of time. If that is the case, it might be best for him to sell his invention to a baseball bat manufacturer. The benefit of this is that he will get a significant sum of money up front. However, in order to determine a fair amount for the rights to the bat, Carlos needs to be able to forecast its success in the marketplace. If his bat becomes popular and, ultimately, an industry standard, his invention could be worth a significant sum. The likelihood of accurately foreseeing the future worth of the bat is slim, and Carlos runs the risk of undervaluing his invention.
Alternatively, Carlos could licence the right to produce the bat to any number of bat producers. So long as they do not negotiate exclusive licenses with him, the benefit of this route is that Carlos retains control of the patent and is able to accumulate royalties from various bat manufacturers. A risk that is run here is that he may not make enough money from these licencing agreements. Moreover, these agreements require a bit of policing, in order to ensure that the licencee is only using the product to the degree agreed upon by the parties.
As a further alternative, if he is able to secure some sort of financing, Carlos could manufacture and market the bat himself. The downside to this route is the massive commitment it demands. Moreover, if the product is not a success, or if Carlos does not have sufficient funds to properly market the bat, his years of research may not be as profitable as he had hoped.

Exclusive possession can be distinguished from non- rivalrous possession in that exclusively possessed assets

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Question 2

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Only works produced by Canadians, or in Canada, are protected by Canadian copyright law.

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(True/False)

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Question 3

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False

A Canadian inventor has up to 15 months to file a patent application in another Paris Convention member state in order to gain protection in that country.

(True/False)

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Question 4

Stealth Inc designs and manufactures a variety of products. Some of those products are marketed to ordinary consumers, while others are marketed toward governments. Stealth Inc is also aware, however, that its products often end up in the hands of criminals and terrorists. Which of the following statements is TRUE?

(Multiple Choice)

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Question 5

Roula, a law professor, recently read a fascinating article about online privacy in Canadian Science and Technology Weekly, a Canadian magazine. She was so impressed with the article that she clipped it for future reference. Later in the term, a scandal erupted at the University when it was discovered that professors' emails were being surveilled. Incensed, Roula photocopied the article and slipped a copy of it under every professor's door in the faculty. There are 50 professors in the faculty. Which of the following is most likely TRUE?

(Multiple Choice)

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Question 6

James owns a software development company. He toils day- in and day- out to develop new ideas. For James, the laws of intellectual property are useful because

(Multiple Choice)

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Question 7

In Canada, when does a work generally become part of the public domain?

(Multiple Choice)

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Question 8

Distinguishing guises cannot be registered as they can only be protected through the common law tort of passing- off.

(True/False)

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Question 9

Which of the following statements about an episode of "This Hour has 22 Minutes" best reflects Canadian copyright law?

(Multiple Choice)

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Question 10

A- Plus Health has come up with a previously undiscovered method of bonding skin back together after it has been cut. The new method allows doctors to use a series of tape- like strips that serve to pull the skin together and hold it in place. The benefit to the invention is that by using the tape, stitches are no longer necessary. Although the company cares about people's health, it also cares about its bottom line. It knows that if everyone discovers how the tape works, anyone would be able to manufacture this medical treatment. Which of the following is TRUE?

(Multiple Choice)

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Question 11

Big and Bad Motors has come out with its newest line of SUV. They market the line under the slogan, "Enjoying the countryside has never been so easy®." A group of guerrilla environmentalists, angry about increased exhaust emissions from the SUVs, has started up a billboard campaign with a photo of an SUV in a diseased forest, surrounded by pollution and sick animals. Beneath the photo reads the caption "Destroying the countryside has never been so easy." The owners of Big and Bad Motors decide to take legal action. Which of the following claims is Big and Bad most likely to initiate?

(Multiple Choice)

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Question 12

Woody has invented a method for instantly analyzing perfume, breaking it down into its component chemicals and reproducing the scent. He is so excited about his invention; he wants to tell the world. Which of the following examples of disclosure would be fatal to a patent claim?

(Multiple Choice)

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Question 13

A patent can be rejected for public policy reasons, even if all the patent criteria are met.

(True/False)

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Question 14

In Canada, trademark protection is only afforded to registered trademarks.

(True/False)

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Question 15

Distraught after having lost his cat, Jimmy Corpini drew up some designs for the "Kitty Caller Collar." The collar was designed so that when its wearer strays beyond certain limits, a signal is sent to a receiver, which pinpoints the location of the collar. In anticipation that one day he would get another cat, Jimmy printed off a copy of his design and emailed a copy to himself. A year later, Jimmy moved, and Takashi moved into his home. While cleaning the house, he came across the design. An engineer by trade, and cat lover by nature, Takashi copied the designs and took them to the Patent Office, where he applied for a patent on the collar, which he renamed the "CatchMeow." In due course, the patent was granted. Six months later, on the advice of an entrepreneur friend, Jimmy produced 100 Kitty Caller Collars, and began selling them at pet shows. He was unaware that Takashi had patented his invention. The collars sold quite well, and Jimmy became something of a local star in the community newspapers. Soon thereafter, Jimmy received a letter from a stern lawyer informing him that he had to stop selling his Kitty Caller Collars, because by so doing he was infringing the patent for the CatchMeow. Which of the following is the most accurate assessment?

(Multiple Choice)

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Question 16

For an invention to be considered non- obvious, the general public must not have been able to come to the solution directly and without difficulty.

(True/False)

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Question 17

While visiting his parents in Toronto, Egon went to a see a local band at a bar. He purchased the compact disk they had for sale, and took it back to his hometown in Victoria, BC. Once there, Egon made copies of the compact disk onto tapes and sold them at his record store for $5 each. Which of the following is TRUE?

(Multiple Choice)

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Question 18

T- Bone Steak, a Canadian pop act, just finished writing a new song. The band does not need to register their copyright ownership in order to protect their copyright.

(True/False)

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Question 19

Rory Parisien has invented a mesh screen to keep bugs out of his cottage in the summer. Being a good steward of the environment, Rory had the unique idea of making the mesh biodegradable, so that when he replaces the mesh, he can just throw it away without harming the pristine environment around his cottage. There is, however, a problem with the mesh in that it biodegrades too easily. After a rainstorm or two, the mesh begins to disintegrate. Moreover, secretions from various bugs can have the same effect. Rory submits a patent for the biodegradable mesh screen designed to keep out bugs. Which of the following assessments is most accurate of his application?

(Multiple Choice)

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Question 20

Showing 1 - 20 of 70

Exclusive possession can be distinguished from non- rivalrous possession in that exclusively possessed assets

Only works produced by Canadians, or in Canada, are protected by Canadian copyright law.

A Canadian inventor has up to 15 months to file a patent application in another Paris Convention member state in order to gain protection in that country.

James owns a software development company. He toils day- in and day- out to develop new ideas. For James, the laws of intellectual property are useful because

In Canada, when does a work generally become part of the public domain?

Distinguishing guises cannot be registered as they can only be protected through the common law tort of passing- off.

Which of the following statements about an episode of "This Hour has 22 Minutes" best reflects Canadian copyright law?

Woody has invented a method for instantly analyzing perfume, breaking it down into its component chemicals and reproducing the scent. He is so excited about his invention; he wants to tell the world. Which of the following examples of disclosure would be fatal to a patent claim?

A patent can be rejected for public policy reasons, even if all the patent criteria are met.

In Canada, trademark protection is only afforded to registered trademarks.

For an invention to be considered non- obvious, the general public must not have been able to come to the solution directly and without difficulty.

T- Bone Steak, a Canadian pop act, just finished writing a new song. The band does not need to register their copyright ownership in order to protect their copyright.

Risk Management and Sources of Law

Litigation and Alternative Dispute Resolution

Introduction to Torts

Intentional Torts

Miscellaneous Torts Affecting Business

Negligence

The Nature and Creation of Contracts

Consideration and Privity

Representations and Terms

Contractual Defects

Discharge and Breach

Contractual Remedies

Special Contracts: Sale of Goods

Special Contracts: Negotiable Instruments

Real Property: Interests and Leases

Real Property: Sales and Mortgages

Personal Property: Bailment and Insurance

Electronic Commerce

Agency and Other Methods of Carrying on Business

Basic Forms of Business Organizations

Legal Rules for Corporate Governance

Secured Transactions

Dealing With Bankruptcy and Insolvency

Government Regulation of Business

Individual Employment

Organized Labour

Doing Business in a Global Economy

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