Question 1

Which of the following is a drawback of technology licensing?

Accepted Answer

A) The licensee can sever the licensing relationship and become a competitor after gaining access to the licensor's technology. 
B) The licensee runs the constant risk that the licensor will provide inferior service. 
C) Licensing maximizes the physical and financial presence of a business overseas thereby exposing it to risks. 
D) Licensing escalates the risks of suffering devastating losses in the event of an expropriation. 
A) The licensee can sever the licensing relationship and become a competitor after gaining access to the licensor's technology. 
B) The licensee runs the constant risk that the licensor will provide inferior service. 
C) Licensing maximizes the physical and financial presence of a business overseas thereby exposing it to risks. 
D) Licensing escalates the risks of suffering devastating losses in the event of an expropriation. A

Question 2

Briefly explain the three distinct time frames when secrecy provisions under the confidentiality clause of licensing agreements may be utilized.

Accepted Answer

When a licensed technology is a trade secret,the agreement should contain a confidentiality clause that restricts the licensee's right to disclose the information.There are three distinct time frames when secrecy provisions can be utilized.First,a licensee may insist on a limited right to inspect the licensor's technology before entering the licensing agreement to ensure that the licensing relationship will be worthwhile.When this occurs the licensee is generally required to sign a contract prohibiting it from using the technology or disclosing it to others.Second,during the life of the licensing agreement,the licensor may wish to restrict the number of people with whom the licensee will share its trade secrets.Finally,the licensor generally insists that the licensee promise not to use or disclose the trade secrets after the licensing agreement has ended.

Question 3

In the United States,the copyright period for works for hires:

Accepted Answer

A) is 110 years from the first publication or 140 years from creation,whichever comes first. 
B) lasts for the life of the author plus 70 years. 
C) is 95 years from the first publication or 120 years from creation,whichever comes first. 
D) lasts for the life of the author plus 120 years 
A) is 110 years from the first publication or 140 years from creation,whichever comes first. 
B) lasts for the life of the author plus 70 years. 
C) is 95 years from the first publication or 120 years from creation,whichever comes first. 
D) lasts for the life of the author plus 120 years C

Question 4

How can a copyright holder recover under the theory of contributory copyright infringement?

Accepted Answer

Three elements must be proven for a copy

Question 5

The United States awards the exclusive rights over patentable subjects to the first individual to file an application rather than the inventor of the product or process.

Accepted Answer

A) True 
 B)False

Question 6

A patent generally is effective for 10 years from the date of filing.

Accepted Answer

A) True 
 B)False

Question 7

The exclusive dealing clause permits the licensee from providing goods or services that are competitive with those supplied by the licensor.

Accepted Answer

A) True 
 B)False

Question 8

As a part of their new business expansion strategies,an Italian company,manufacturing car accessories,licensed a local firm in Kenya for production of car sun shades.After running a successful business for one year,the Kenyan firm manufactured its own car shades with local resources and started selling them at lower rates.This was a violation of the _____ clause in licensing agreements which prohibits the licensee from providing goods or services that are competitive with those supplied by the licensor.

Accepted Answer

A) granting 
B) requirements 
C) exclusive dealing 
D) technical service 
A) granting 
B) requirements 
C) exclusive dealing 
D) technical service

Question 9

Trademark dilution laws protect "distinctive" or "famous" marks from unauthorized uses even when confusion is not likely to occur.

Accepted Answer

A) True 
 B)False

Question 10

The risk of a licensee producing inferior goods or inferior service is drastically reduced if the licensor closely monitors his/her activities.

Accepted Answer

A) True 
 B)False

Question 11

Patents,trademarks,copy rights,and trade secrets are basic types of:

Accepted Answer

A) intellectual property. 
B) community property. 
C) business property. 
D) patented property. 
A) intellectual property. 
B) community property. 
C) business property. 
D) patented property.

Question 12

Which of the following statements is true for the confidentiality clause?

Accepted Answer

A) It restricts the licensor's right to disclose trade secrets after the licensing agreement has ended. 
B) During a licensing agreement,it permits the licensor to limit the number of people with whom the licensee may share the technology. 
C) It restricts the licensee's right to disclose the information only when the licensed technology is not a trade secret. 
D) Prior to licensing,it does not allow potential licensees to inspect the technology the licensor is providing. 
A) It restricts the licensor's right to disclose trade secrets after the licensing agreement has ended. 
B) During a licensing agreement,it permits the licensor to limit the number of people with whom the licensee may share the technology. 
C) It restricts the licensee's right to disclose the information only when the licensed technology is not a trade secret. 
D) Prior to licensing,it does not allow potential licensees to inspect the technology the licensor is providing.

Question 13

An American university professor derives a new formula which explains a fundamental principle of nature.In the United States,this formula:

Accepted Answer

A) can be patented. 
B) cannot be patented. 
C) can be patented if it is novel. 
D) cannot be patented because it is not useful. 
A) can be patented. 
B) cannot be patented. 
C) can be patented if it is novel. 
D) cannot be patented because it is not useful.

Question 14

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

Accepted Answer

A) service name. 
B) service mark. 
C) trade name. 
D) trademark. 
A) service name. 
B) service mark. 
C) trade name. 
D) trademark.

Question 15

Trademark dilution laws focus on protecting the investment of trademark owners,while traditional trademark laws were intended to protect consumers.

Accepted Answer

A) True 
 B)False

Question 16

An individual can freely use the trade secrets of another if he discovers them through means such as reverse engineering.

Accepted Answer

A) True 
 B)False

Question 17

A copyright comes into existence in the United States only after the work has been registered with the appropriate governmental office.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is an advantage of licensing?

Accepted Answer

A) It permits quicker foreign market penetration than direct investment. 
B) It maximizes the physical and financial presence of a business overseas. 
C) It allows the licensee to directly benefit by receiving royalty payments. 
D) It allows the first person to register a trademark to become its legal owner. 
A) It permits quicker foreign market penetration than direct investment. 
B) It maximizes the physical and financial presence of a business overseas. 
C) It allows the licensee to directly benefit by receiving royalty payments. 
D) It allows the first person to register a trademark to become its legal owner.

Question 19

Generally,compensation clauses specify the currency in which royalty payments are to be made.

Accepted Answer

A) True 
 B)False

Question 20

The unauthorized reproduction of creative works is prohibited by a(n):

Accepted Answer

A) inventor's certificate. 
B) patent. 
C) compulsory license. 
D) copyright. 
A) inventor's certificate. 
B) patent. 
C) compulsory license. 
D) copyright.

Exam 8: Licensing and Intellectual Property

Which of the following is a drawback of technology licensing?

Briefly explain the three distinct time frames when secrecy provisions under the confidentiality clause of licensing agreements may be utilized.

In the United States,the copyright period for works for hires:

How can a copyright holder recover under the theory of contributory copyright infringement?

The United States awards the exclusive rights over patentable subjects to the first individual to file an application rather than the inventor of the product or process.

A patent generally is effective for 10 years from the date of filing.

The exclusive dealing clause permits the licensee from providing goods or services that are competitive with those supplied by the licensor.

Trademark dilution laws protect "distinctive" or "famous" marks from unauthorized uses even when confusion is not likely to occur.

The risk of a licensee producing inferior goods or inferior service is drastically reduced if the licensor closely monitors his/her activities.

Patents,trademarks,copy rights,and trade secrets are basic types of:

Which of the following statements is true for the confidentiality clause?

An American university professor derives a new formula which explains a fundamental principle of nature.In the United States,this formula:

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

Trademark dilution laws focus on protecting the investment of trademark owners,while traditional trademark laws were intended to protect consumers.

An individual can freely use the trade secrets of another if he discovers them through means such as reverse engineering.

A copyright comes into existence in the United States only after the work has been registered with the appropriate governmental office.

Which of the following is an advantage of licensing?

Generally,compensation clauses specify the currency in which royalty payments are to be made.

The unauthorized reproduction of creative works is prohibited by a(n):

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remedies

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

The Agency Relationship-Creation, Duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountants

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers

Introduction to Security

Security Interests in Personal Property

Bankruptcy

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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