Deck 8: Intellectual Property Rights

Question 1

The law does not prohibit the creation or shipment of counterfeit labels unless they are attached to products.

Answer 1

False

Question 2

A patent applicant must demonstrate that an invention is useful to receive a patent.

Answer 2

True

Question 3

Certain business processes are patentable.

Answer 3

True

Question 4

A trademark owner that successfully proves infringement can recover the profits that the infringer wrongfully received from the infringement.

Question 5

An unusual or fanciful trade name is not protected under trademark law.

Question 6

The need to protect intellectual property is recognized in the U.S. Constitution.

Question 7

Once a manufacturer's trademark is established, another manufacturer may use it without permission.

Question 8

To succeed in a suit for trademark infringement, the owner must show that the infringer acted intentionally.

Question 9

Trademark dilution cannot occur online.

Question 10

The products involved in a trademark dilution suit must be similar.

Question 11

Intellectual property is property resulting from intellectual, creative processes.

Question 12

After a patent is issued, there is a nine-month limit before it can be challenged.

Question 13

A licensor who allows a licensee to use a trademark as part of the licensee's company name must also permit the licensee to use the mark on its products.

Question 14

A trade name is used to indicate all or part of a business's name.

Question 15

Service marks are not protected in the same way as trademarks.

Question 16

Only the federal government provides for the registration of trademarks.

Question 17

A descriptive term is protected under trademark law if it acquires a secondary meaning.

Question 18

The United States can prosecute foreign counterfeiters under U.S. law.

Question 19

With respect to a patented process, all steps or their equivalent must be copied for infringement to occur.

Question 20

Fanciful trademarks are sometimes considered to be the most distinctive trademarks.

Question 21

Brewed Beans Inc. makes and sells "CoCoCafe," a chocolate-flavored coffee. Darkroast Inc. later markets a similar drink under the name "KoKoKafe." This is most likely

A) copyright infringement.
B) patent infringement.
C) trademark infringement.
D) none of the choices.

Question 22

To obtain copyright protection under federal law, a work must be original.

Question 23

The registration of a copyright is not evidence that the copyright is valid.

Question 24

Pricing information is not a trade secret.

Question 25

Works that are copyrightable include product packaging.

Question 26

Gilda, marketing manager for Home Stuff LLC, is responsible for branding the company's products. Aspects of branding that can be trademarked include

A) a catchy phrase, such as "Stuff your home with Home Stuff!"
B) the shape of a container, even if it does not aid in product identification.
C) use of another party's established trademark, with or without permission.
D) none of the choices.

Question 27

Without permission, Race Runners Inc. uses a trademark that is similar to the registered mark of Swiftfoot, Inc. This use of the mark constitutes trademark dilution

A) if consumers are confused.
B) all of the choices.
C) only if the two companies' products are similar.
D) if the use diminishes the distinctive quality of the mark.

Question 28

A copyright owner who sells a copy of a work retains the right to control the further distribution of that copy.

Question 29

Some business processes can be protected as trade secrets.

Question 30

Each member country to the TRIPS agreement must include in its domestic laws broad intellectual property rights and effective remedies for violations.

Question 31

Tapping into a competitor's computer to obtain confidential business data is not a theft of trade secrets.

Question 32

An unauthorized reproduction must be exactly the same as the original, and reproduce the original in its entirety, for infringement of copyright to occur.

Question 33

A license that limits the uses of a patent by the licensee is unlawful.

Question 34

Information that cannot be patented, copyrighted, or trademarked cannot be protected as a trade secret.

Question 35

Sea Coast Café uses the trademark of Tacos del Mar without permission. This use of the mark is actionable as trademark infringement

A) if consumers are confused.
B) all of the choices.
C) only if the two companies' products are similar.
D) if the use diminishes the distinctive quality of the mark.

Question 36

Phoenix Inc. is a publisher. Phoenix uses a logo featuring a bird rising from a flame to identify its publications. The publications are printed in a unique process that includes a 3-D printer. Phoenix could most likely obtain trademark protection for its

A) logo.
B) publications.
C) printing process.
D) printer.

Question 37

Certain business processes are copyrightable.

Question 38

The European Union's copyright rules limit the royalty protection for musicians to ten years.

Question 39

If a creative work is not copyrightable, other intellectual property law will not protect it.

Question 40

Under the Madrid Protocol, the fees and procedures for trademark registration vary significantly among individual countries.

Question 41

Stig creates unique graphic works that feature characters of his own imagination. Copyright protection for Stig's work is

A) not possible.
B) automatic.
C) available only on registration with the U.S. Copyright Office.
D) enforceable only if Stig places a circled "c" on the work.

Question 42

Graphix S.A. traffics in labels that bear counterfeit trademarks. This is a crime

A) only if the labels have negative effects on legitimate businesses.
B) only if the labels are attached to counterfeit goods.
C) under all circumstances.
D) under no circumstances.

Question 43

Berry Good LLC registers its trademark with the U.S. Patent and Trademark Office, and uses it to market a distinctive line of ice cream products. Crabapple Inc. uses the mark without Berry's consent to sell imitation frozen desserts. Berry has a cause of action against

A) Crabapple.
B) the U.S. Patent and Trademark Office.
C) consumers who buy Crabapple's desserts.
D) all of the choices.

Question 44

Pseudo Drugs Inc. is convicted of trafficking in counterfeit prescription drugs. As a penalty, the company may be ordered to pay restitution to the trademark holders in an amount equal to

A) their lost net profits.
B) the retail prices of the genuine drugs.
C) Pseudo's profits from the sale of the counterfeit drugs.
D) the retail prices of the counterfeit drugs.

Question 45

Don One decides to use his personal name for a line of clothing he is developing. In this circumstance, Don One will receive trademark protection under the law when

A) Don begins to market his line of clothing.
B) customers begin to associate the name with the source of the product.
C) Don begins to make his line of clothing.
D) all of the choices.

Question 46

Galaxy Research Inc. uses a mark associated with its name to distinguish its services from those of other tech firms. This mark is

A) none of the choices.
B) a trade secret.
C) a service mark.
D) a trade name.

Question 47

O-Ring Corporation allows Piston Company to incorporate O-Ring's patented fuel-injection system into Piston's product. This is

A) a license.
B) copyright infringement.
C) trademark infringement.
D) patent infringement.

Question 48

Organos Ltd. traffics in nutritional supplements that are marketed as genuine, trademark-branded products when in fact they are counterfeit. This is a crime

A) only if the counterfeits have negative effects on legitimate businesses.
B) only if the counterfeits present serious public health risks.
C) under all circumstances.
D) under no circumstances.

Question 49

Without the permission of the copyright owner, Faye copies the literary expression of Game of Thrones, changes the names of the main characters, and publishes the result as her own work. This is

A) copyright infringement.
B) a "fair use."
C) a legitimate creative act.
D) none of the choices.

Question 50

Gargantua Equipment Corporation registers its trademark as provided by federal law. This registration gives notice that the mark belongs exclusively to Gargantua. This notice is

A) national.
B) limited to Gargantua's home state.
C) limited to Gargantua's market.
D) limited to those who have actual notice of it.

Question 51

Works that are copyrightable include

A) books.
B) music videos.
C) product packaging.
D) all of the choices.

Question 52

Chris operates the Devil's Brew chain of coffee stands. "Devil's Brew" is

A) none of the choices.
B) a trade secret.
C) a service mark.
D) a trade name.

Question 53

Obtaining a court order to close down the domain name of a website is an effective tool that U.S. officials use to combat online sales of

A) licenses.
B) counterfeit goods.
C) competing products.
D) trademarks.

Question 54

Ruby invents a new type of pillow and obtains a patent for it. Sleep-Time Inc. believes that Ruby's pillow infringes on one of Sleep-Time's previously patented products. Sleep-Time must file a challenge to Ruby's patent within

A) nine months.
B) twenty years.
C) the life of the inventor plus seventy years.
D) no specific time.

Question 55

Wendy works as a weather announcer for a TV station under the character name Weather Wendy. Wendy can register her name as

A) none of the choices.
B) a trade secret.
C) a service mark.
D) a trade name.

Question 56

Apex Electrical Inc. agrees to allow Apex Foundations LLC to use the owner's trademark "Apex" as part of its company name but not otherwise. The domain name apex.com can be used online by

A) Apex Electrical only.
B) both businesses but no others.
C) neither business.
D) both businesses and any others that own the mark.

Question 57

Serena invents a new, unique, long-life battery. A grant from the government that gives Serena the exclusive right to make and sell the battery for a certain period of time is

A) a patent.
B) a trademark.
C) a copyright.
D) a trade secret.

Question 58

To be protected under the Copyright Act, a work must be

A) an inseparable idea and expression.
B) original and fixed in a durable medium.
C) a concept, principle, or discovery.
D) none of the choices.

Question 59

Salty Snacks Inc. markets a fish-shaped cracker. When Tasty Tidbits Inc. begins to sell a similar product, Salty files a suit against Tasty, alleging infringement and claiming that consumers are likely to be confused. The court will most likely

A) rule in the plaintiff's favor.
B) dismiss the suit.
C) order both parties to redesign their respective products.
D) order both parties to destroy all remaining fish-shaped crackers.

Question 60

GoodGro Inc. makes genetically modified seeds that are identical to Harvest Corporation's patented seeds, without Harvest's permission. This is most likely

A) copyright infringement.
B) patent infringement.
C) trademark infringement.
D) none of the choices.

Question 61

Leigh buys Masters of Business, a copyrighted book. Under the first sale doctrine, Leigh can legally

A) sell the book to another person.
B) republish the book as his own work.
C) control the distribution of other copies of the book.
D) none of the choices.

Question 62

Prognosis Inc. owns a brain-computer interface that enables physicians to diagnose and treat some diseases quickly and accurately. Federal copyright protection extends to

A) the general appearance of the app.
B) the parts of the app that can be read by computers.
C) the command structure of the app.
D) all of the choices.

Question 63

United Inc., a U.S. film production company, files a suit against Video Ltd., a Mexican production firm, for infringement of intellectual property rights under Mexico's national laws. Both the U.S. and Mexico are signatories of the TRIPS agreement, under which United is entitled to

A) more protection under Mexican law than Video.
B) the same rights and protection under Mexican law as Video.
C) fewer rights under Mexican law than Video.
D) none of the choices.

Question 64

The idea for "Price & Profit," an app that businesses can use to track their revenue, profit, and payroll, is protected by

A) copyright law.
B) patent law.
C) none of the choices.
D) trade secrets law.

Question 65

Like most successful companies, Phones Inc. has trade secrets. The law protects those secrets if the information is

A) not revealed to outside parties.
B) cataloged by the company as "confidential."
C) useful and is in fact used by the company.
D) unique and has value to a competitor.

Question 66

Predictive Data LLC makes and sells software that enables a business to target its advertising precisely. The company could successfully bring an action for copyright infringement against a competitor who copies

A) the screen displays of the software.
B) the parts of the software that can be read by humans.
C) the menus of the software.
D) any of the choices.

Question 67

Bette choreographs a dance to accompany City Orchestra's performance of a medley of movie scores. Dian, a dance instructor, distributes copies of a short portion of the choreography to her students. This is most likely

A) copyright infringement.
B) a "fair use."
C) legal only on a payment of royalties to Bette.
D) legal only on a payment of royalties to City Orchestra.

Question 68

Paving Corporation taps into the computer network of Roadwork Inc., a competitor, and downloads confidential business data without Roadwork's knowledge or authorization. This is most likely

A) copyright infringement.
B) patent infringement.
C) trademark infringement.
D) a theft of trade secrets.

Question 69

College Copy Shop (CCS) compiles, copies, and sells reading materials to students on the instructions of their professors, who indicate which parts of certain publications to include. These include texts published by Deep Topics, Inc. CCS does not obtain the permission of Deep Topics, or any of the other original publishers of the copied materials, and does not pay royalties on the sales of the compilations. Deep Topics and others file a suit against CCS, alleging infringement of the plaintiffs' intellectual property rights. Which type of intellectual property is involved in this situation? What is CCS's likely defense? How is a court most likely to rule? Explain.

Question 70

France and the United States are signatories of the Berne Convention. Alain, a citizen of France, publishes a book first in France and then in the United States. Alain's copyright must be recognized by

A) France only.
B) France and the United States only.
C) all of the signatories of the Berne Convention.
D) none of the choices.

Question 71

Alpha Inc. announces a new computer operating system to be marketed under the name McSoftware. McDonald's Corp. asserts that the use of this name infringes on the McDonald's family of trademarks characterized by the prefix "Mc" attached to a generic term. Alpha responds that "Mc" has come into generic use as a prefix and therefore McDonald's has no trademark rights to the prefix. Alpha files an action, seeking a judgment that the mark McSoftware does not infringe on McDonald's trademarks. What factors will the court consider in deciding this issue? What will be the probable outcome of the case? Explain.

Question 72

Information that may be protected as trade secrets includes

A) customer lists.
B) pricing information.
C) marketing techniques.
D) all of the choices.