Question 1

In the United States, which of the following can be patented?

Accepted Answer

A)  New chemical compounds 
B)  Laws of nature 
C)  Physical phenomena 
D)  Abstract ideas 
A)  New chemical compounds 
B)  Laws of nature 
C)  Physical phenomena 
D)  Abstract ideas A

Question 2

In order to prevail in a vicarious copyright infringement case, the copyright owner must prove indirect infringement by a primary party, an indirect financial benefit to the defendant, and the defendant's inability to supervise the infringers.

Accepted Answer

A) True 
 B)False  False

Question 3

What are technology transfer agreements? Discuss some of their merits and demerits.

Accepted Answer

A technology transfer occurs when a business licenses its intellectual property to another firm. These contractual agreements generally permit a company to quickly penetrate a foreign market without incurring the substantial financial and legal risks associated with direct investment. It permits an intellectual property owner to grant to another the right to use protected technology in return for some form of compensation. This generally takes place through a licensing agreement.
Licensing provides numerous benefits for both licensors and licensees. Licensors directly benefit by receiving royalty payments and gaining a presence in a market that might otherwise be inaccessible. Furthermore, by licensing, a business minimizes its physical and financial presence overseas, thereby reducing the risks of suffering devastating losses in the event of an expropriation.
Despite its many benefits, technology licensing is not without its drawbacks. Perhaps the greatest risk is that the licensee, after gaining access to the licensor's technology, will sever the licensing relationship and become a competitor. If a licensor does not closely monitor the activities of a licensee, it runs the risk that the licensee will produce inferior products or provide inferior service. Further, some licensees cannot be trusted to honestly report their use of the licensed technology.

Question 4

When the trademark is a descriptive term, _____.

Accepted Answer

A)  courts routinely treat the term as distinctive to legal merit 
B)  protection exists only if a claimant proves that the term conveys to consumers a secondary meaning of association with the claimant 
C)  courts are unwilling to allow the term for trademark protection 
D)  it qualifies for trademark protection automatically and functions as the common descriptive name of a product class 
A)  courts routinely treat the term as distinctive to legal merit 
B)  protection exists only if a claimant proves that the term conveys to consumers a secondary meaning of association with the claimant 
C)  courts are unwilling to allow the term for trademark protection 
D)  it qualifies for trademark protection automatically and functions as the common descriptive name of a product class

Question 5

The fair use defense against copyright infringement applies:

Accepted Answer

A)  if the use diminishes the value or enhances the marketability of the original work. 
B)  if there are substantial differences between the copyrighted work and the derivative work. 
C)  only to creative works and not informational works. 
D)  to commercial uses, which will be termed presumptively fair. 
A)  if the use diminishes the value or enhances the marketability of the original work. 
B)  if there are substantial differences between the copyrighted work and the derivative work. 
C)  only to creative works and not informational works. 
D)  to commercial uses, which will be termed presumptively fair.

Question 6

A mark provides its owner with the exclusive right to make, use, or sell an invention or process during the mark period.

Accepted Answer

A) True 
 B)False

Question 7

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-to-invent U.S. citizen 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-to-invent U.S. citizen to register a trademark to become its legal owner.

Question 8

Discuss the intellectual property aspects of social media.

Accepted Answer

Facebook, LinkedIn, Twitter, and YouTube

Question 9

Currently, the Unites States awards patent privileges based on a _____ system.

Accepted Answer

A)  first-to-contemplate 
B)  first-to-use 
C)  first-to-file 
D)  first-to-invent 
A)  first-to-contemplate 
B)  first-to-use 
C)  first-to-file 
D)  first-to-invent

Question 10

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.

Question 11

If a term is arbitrary or suggestive, courts treat it as distinctive and automatically disqualify it for trademark protection.

Accepted Answer

A) True 
 B)False

Question 12

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 13

The direct copyright infringement theory of recovery has been used effectively against suppliers of peer-to-peer file sharing software that has been used to download DVDs from the Internet.

Accepted Answer

A) True 
 B)False

Question 14

Patent protection generally runs for a period of 14 years, although design patents are protected for 20 years.

Accepted Answer

A) True 
 B)False

Question 15

The _____ immunizes online service providers from liability for the information that originated with third persons.

Accepted Answer

A)  E-Infringement Act 
B)  Online Liability Act 
C)  Social Media Privacy Act 
D)  Communications Decency Act 
A)  E-Infringement Act 
B)  Online Liability Act 
C)  Social Media Privacy Act 
D)  Communications Decency Act

Question 16

Explain the "first in time equals first in right" principle of trademark law.

Accepted Answer

A fundamental principle of trademark law

Question 17

According to the territoriality principle, priority of trademark rights in the United States depends solely on priority of use anywhere in the world, not on priority of use in the United States.

Accepted Answer

A) True 
 B)False

Question 18

D&J is a company that owns intellectual property. It allows Freedman Bros. to sell their items. Here, D&J will be known as the _____.

Accepted Answer

A)  warrantor 
B)  protector 
C)  guarantor 
D)  licensor 
A)  warrantor 
B)  protector 
C)  guarantor 
D)  licensor

Question 19

A trade secret is also called _____.

Accepted Answer

A)  performance standard 
B)  contributory copyright 
C)  compilation of information 
D)  propriety information 
A)  performance standard 
B)  contributory copyright 
C)  compilation of information 
D)  propriety information

Question 20

It makes good sense for companies to engage in widespread monitoring of social media content to head off budding complaints or criticisms.

Accepted Answer

A) True 
 B)False

Exam 8: Licensing and Intellectual Property

In the United States, which of the following can be patented?

In order to prevail in a vicarious copyright infringement case, the copyright owner must prove indirect infringement by a primary party, an indirect financial benefit to the defendant, and the defendant's inability to supervise the infringers.

What are technology transfer agreements? Discuss some of their merits and demerits.

When the trademark is a descriptive term, _____.

The fair use defense against copyright infringement applies:

A mark provides its owner with the exclusive right to make, use, or sell an invention or process during the mark period.

Which of the following is an advantage of licensing?

Discuss the intellectual property aspects of social media.

Currently, the Unites States awards patent privileges based on a _____ system.

Which of the following is a drawback of technology licensing?

If a term is arbitrary or suggestive, courts treat it as distinctive and automatically disqualify it for trademark protection.

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

The direct copyright infringement theory of recovery has been used effectively against suppliers of peer-to-peer file sharing software that has been used to download DVDs from the Internet.

Patent protection generally runs for a period of 14 years, although design patents are protected for 20 years.

The _____ immunizes online service providers from liability for the information that originated with third persons.

Explain the "first in time equals first in right" principle of trademark law.

According to the territoriality principle, priority of trademark rights in the United States depends solely on priority of use anywhere in the world, not on priority of use in the United States.

D&J is a company that owns intellectual property. It allows Freedman Bros. to sell their items. Here, D&J will be known as the _____.

A trade secret is also called _____.

It makes good sense for companies to engage in widespread monitoring of social media content to head off budding complaints or criticisms.

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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