Deck 12: The Importance of Intellectual Property

Question 1

Which of the following is NOT one of the four key forms of intellectual property protection?

A) Innovations
B) Copyrights
C) Trademarks
D) Trade secrets
E) Patents

Answer 1

A

Question 2

What are the two primary rules of thumb for determining whether intellectual property protection should be pursued for a particular intellectual asset?

Answer 2

First, a firm should determine whether the intellectual property in question is directly related to its competitive advantage. Second, a firm should determine whether the item has independent value in the marketplace. If either or both of these conditions exist, intellectual property protection for an asset should be strongly considered.

Question 3

The first patent, which was granted for a process of making potash, an ingredient in fertilizer, was signed by ________.

A) John Adams
B) Thomas Jefferson
C) Abraham Lincoln
D) Theodore Roosevelt
E) George Washington

Answer 3

E

Question 4

Which of the following are the four key forms of intellectual property protection?

A) Patents, copyrights, trademarks, and trade secrets
B) Discoveries, covenants, trademarks, patents
C) Patents, official documents, copyrights, inventions
D) Discoveries, Internet domain names, innovations, trademarks
E) Convents, inventions, opportunities, and copyrights

Question 5

What is intellectual property? Why is it called "intellectual" property? Why is intellectual property such an important issue for entrepreneurial firms?

Question 6

A grant from the federal government conferring the rights to exclude others from making, selling, or using an invention for a specific period of time is referred to as a(n) ________.

A) trademark
B) patent
C) idea secret
D) innovation
E) copyright

Question 7

Which of the following is NOT an example of intellectual property?

A) Proactiv's formula for acne medication
B) Apple's trademark
C) Internet domain name www.dripcatch.com
D) Microsoft's Windows operating system
E) A computer monitor

Question 8

Intellectual property is any product of human intellect that is intangible but has value in the marketplace.

Question 9

There are three basic requirements for a patent to be granted. The subject of the patent application must be ________.

A) useful, difficult to copy, and novel in relation to prior arts in the field
B) based on cutting edge science or technology, not obvious to a person of ordinary skill in the field, and rare
C) useful, novel in relation to prior arts in the field, and not obvious to a person of ordinary skill in the field
D) rare, difficult to copy, and not obvious to a person of ordinary skill in the field
E) useful, scientific, and novel in relation to prior arts in the field

Question 10

Amazon.com's one-click ordering system and Priceline.com's "name-your-price" business model are examples of ________ patents.

A) copyright extension
B) utility
C) business technique
D) trademark extension
E) business method

Question 11

Which of the following was NOT identified in the textbook as one of the common mistakes that entrepreneurs make regarding intellectual property?

A) Not fully recognizing the value of their intellectual property
B) Not properly identifying all their intellectual property
C) Not properly registering their Internet domain names
D) Not using their intellectual property as part of their overall plan for success
E) Not taking sufficient steps to protect their intellectual property

Question 12

The sole entity responsible for granting patents in the United States is the ________.

A) U.S. Patent and Trademark Office
B) Federal Patent, Copyright and Trademark Office
C) Securities and Exchange Commission
D) U.S. Department of Patents
E) U.S. Treasury Department

Question 13

Which of the following selections correctly identifies the three types of patents?

A) Manufacturing; process; plant
B) Usefulness; purpose; genetic
C) Explicit; implicit; plant
D) Utility; design; plant
E) Manufacturing; service; other

Question 14

There are two primary rules of thumb for deciding if intellectual property protection should be pursued for a particular intellectual asset. First, a firm should determine if the intellectual property has value in the marketplace. Second, a firm should determine if its intellectual property ________.

A) is directly related to its competitive advantage
B) could be licensed to another company
C) is more than three years old
D) is something that was developed "in-house"
E) rightfully belongs to the firm or the employees who developed it

Question 15

Patents, trademarks, copyrights, and licenses are the four key forms of intellectual property.

Question 16

Which of the following is an example of intellectual property?

A) 3Derm System's cash reserves
B) The computer that you use
C) Nike's swoosh logo
D) United's fleet of planes
E) Google's headquarters in Mountain View, California

Question 17

The opening feature focuses on 3Derm Systems, a company that makes a device that takes 3D images of the human skin. The central form of intellectual property that 3Derm is hoping to benefit from is a(n) ________.

A) patent
B) Internet domain name
C) license
D) trademark
E) copyright

Question 18

Since the first patent was granted, there have been ________ patents granted in the United States.

A) 526,000
B) 2.3 million
C) 4.6 million
D) 9.6 million
E) 12.2 million

Question 19

________ patents are the most common type of patent and cover what we generally think of as new inventions.

A) Value
B) Product
C) Method
D) Utility
E) Design

Question 20

Which form of intellectual property protection is the only one expressly mentioned in the original articles of the U.S. Constitution?

A) Assurances
B) Patents
C) Copyrights
D) Trade secrets
E) Trademarks

Question 21

A ________ is any word, name, symbol, or device used to identify the source of origin of products or services and to distinguish those products or services from others.

A) copyright
B) trademark
C) license
D) trade secret
E) patent

Question 22

Design patents are the most common type of patent and cover what we generally think of as new inventions.

Question 23

________ marks are similar to ordinary trademarks, but they are used to identify the services or intangible activities of a business rather than a business's physical product.

A) Creative
B) Intangible
C) Examination
D) Service
E) Subtle

Question 24

A patent is a grant from the federal government conferring the rights to exclude others from making, selling, or using an invention for the term of the trademark.

Question 25

The term of a utility patent is ________ years from the date ________.

A) 7; the patent is granted
B) 15; of the initial application
C) 15; the patent is granted
D) 20; of the initial application
E) 20; the patent is granted

Question 26

Since the first patent was granted in 1790, the USPTO has granted 9.6 million patents.

Question 27

A utility patent can be obtained for a new product or process or the "idea" for a new product or process.

Question 28

The Savvy Entrepreneurial Firm feature in Chapter 12 focuses on provisional patent applications. The main point of the feature is to illustrate that filing a provisional patent application effectively takes ________.

A) substantial financial resources
B) a substantial commitment of time and effort
C) very little effort
D) some finesse
E) substantial expertise

Question 29

Patent ________ takes place when one party engages in the unauthorized use of another party's patent.

A) breach
B) encroachment
C) violation
D) infraction
E) infringement

Question 30

Dell for computers, Modcloth for vintage and vintage-inspired women's clothing, and Proactiv for acne medication are examples of ________.

A) certifications
B) copyrights
C) patents
D) trade secrets
E) trademarks

Question 31

Identify and briefly describe the three types of patents.

Question 32

In terms of priority in filing a patent application, the United States uses a first-to-________ system.

A) file
B) invent
C) manufacture
D) sell
E) validate

Question 33

________ marks are trademarks or service marks used by the members of a cooperative, association, or other collective group, including marks indicating membership in a union or similar organization.

A) Collective
B) Share
C) Examination
D) Joint
E) Certification

Question 34

The four types of trademarks are ________.

A) trademarks, service marks, collective marks, and certification marks
B) examination marks, trademarks, combined marks, and service marks
C) shared marks, collective marks, mutual marks, and trademarks
D) service marks, cooperative marks, trademarks, and shared marks
E) trademarks, collective marks, documentation marks, and combined marks

Question 35

________ patents are the second most common type of patent and cover the invention of new, original, and ornamental designs for manufactured products.

A) Aesthetic
B) Utility
C) Visual
D) Blueprint
E) Design

Question 36

A utility patent is good for ________ years from the date of the original application, a design patent is good for ________ years from the date the patent is granted, and a plant patent is good for ________ years from the date of the original application.

A) 14; 14; 20
B) 20; 20; 14
C) 20; 20; 20
D) 20; 14; 20
E) 14; 20; 14

Question 37

Which of the following is NOT generally eligible for trademark protection?

A) Trade dress
B) Shapes
C) Words
D) Surnames
E) Designs or logos

Question 38

Which of the following is NOT a type of trademark?

A) Trademark
B) Certification mark
C) Documentation mark
D) Collective mark
E) Service mark

Question 39

The Partnering for Success feature in Chapter 12 starts by talking about the Maker Movement. According to the feature, there are a growing number of companies that have formal processes in place for ________ to submit ideas.

A) customers
B) suppliers
C) inventors
D) stakeholders
E) the general public

Question 40

The average time for the approval of a patent is approximately seven months.

Question 41

What is a trademark? Why are trademarks important?

Question 42

A trademark is a word, name, symbol, or device used to identify the source or origin of products or services and to distinguish those products or services from others.

Question 43

Certification marks are similar to ordinary trademarks, but they are used to identify the services or intangible activities of a business rather than a business's physical product.

Question 44

Which of the following symbols is the copyright bug?

A) ç
B) €
C) ¢
D) ©
E) ™

Question 45

Pictorial, graphic, and sculptural works can be protected via copyrights.

Question 46

Copyright ________ occurs when one work derives from another or is an exact copy or shows substantial similarity to the original work.

A) infringement
B) violation
C) intrusion
D) breach
E) duplication

Question 47

Copyright law protects any work of authorship ________.

A) 90 days after it is approved by the U.S. Copyright Office
B) one year after it assumes a tangible form
C) the moment it assumes a tangible form
D) as soon as it is approved by the U.S. Copyright Office
E) 30 days after it assumes a tangible form

Question 48

Copyright law is governed by the ________.

A) U.S. Constitution
B) 1946 Intellectual Property Act
C) 1966 Trademark and Copyright Act
D) 1955 Inventors and Writer's Protection Act
E) Copyright Revision Act of 1976

Question 49

If a local band wrote their own rendition of a Katy Perry song, the band could try to copyright their rendition of the song as a(n) ________ work.

A) imitative
B) offshoot
C) derivative
D) subsequent
E) supplemental

Question 50

Marks that are merely descriptive of a product or service can be trademarked.

Question 51

Trademark law falls under the Lanham Act, which passed in 1946.

Question 52

Which of the following statements about copyrights is incorrect?

A) Businesses typically possess a treasure trove of copyrightable material.
B) A musical composition that is written down is copyrightable.
C) Copyrightable material may be in tangible or intangible form.
D) The 1976 Copyright Act governs copyright law in the United States.
E) A copyright is a form of intellectual property protection.

Question 53

Combinations of numbers and letters, such as 3M and 1-800-CONTACTS, can be trademarked.

Question 54

The What Went Wrong? feature in Chapter 12 focuses on trademark disputes between large firms and start-ups. In the case of Eat More Kale and Chick-fil-A, the winner was ________.

A) Eat More Kale
B) Chick-fil-A
C) neither; settled out of court
D) neither; a compromise was reached
E) neither; Chick-fil-A withdrew complaint

Question 55

A trademark is registered with the ________.

A) U.S. Commerce Department
B) Federal Trade Commission
C) Securities and Exchange Commission
D) Federal Patent, Copyright, and Trademark Office
E) U.S. Patent and Trademark Office

Question 56

The main exclusion from copyright laws is that copyright laws cannot protect ________.

A) ideas
B) dramatic works
C) computer software
D) musical compositions
E) literary works

Question 57

Computer software is not covered by copyright law.

Question 58

According to current regulations, any copyrightable work created on or after January 1, 1978, is protected by copyright law for the life of the author plus ________ years.

A) 28.5
B) 101
C) 40
D) 55
E) 70

Question 59

A form of intellectual property protection that grants to the owner of a work of authorship the legal right to determine how the work is used and to obtain the economic benefits from the work is referred to as a(n) ________.

A) assurance document
B) patent
C) trade secret
D) brand
E) copyright

Question 60

A trademark is a form of intellectual property protection that grants to the owner of a work of authorship the legal right to determine how the work is used and to obtain the economic benefits from the work.

Question 61

While stealing trade secrets is widely considered to be unethical, it is not a criminal offense.

Question 62

What is a copyright? What is protected by a copyright?

Question 63

Which of the following items would typically be protected by a form of intellectual property protection other than trade secret statutes?

A) Financial forecast
B) Product formula
C) A company's logo
D) Logs of sales calls
E) Employee roster

Question 64

Consider the following questions: Do our products under development require patent protection? Are we in compliance with the copyright license agreements into which we have entered? Is anyone infringing on our trademarks? Are company trade secrets leaking out to competitors? These are the types of questions that would be asked when conducting a(n) ________.

A) intangible material examination
B) intellectual property inventory
C) intangible material inspection
D) patent, trademark, copyright, and trade secret review
E) intellectual property audit

Question 65

Copyright infringement occurs when one work derives from another or is an exact copy.

Question 66

According to the textbook, trade secret disputes arise most frequently when ________.

A) one firm alleges that it can legally use another firm's trade secrets because they were "voluntarily" disclosed
B) an employee leaves a firm to join a competitor and is accused of taking confidential information with him or her
C) one firm claims that another firm outright stole its trade secrets
D) one firms claims that what another firm is claiming as a trade secret is common knowledge
E) one firm claims that it obtained another firm's trade secrets through legal means

Question 67

The ________, which was drafted in 1979 by a special commission, attempted to set nationwide standards for trade secret legislation.

A) Intangible Assets Protection Act
B) Fairness in Intellectual Property Act
C) Uniform Trade Secrets Act
D) Trademark & Copyright Act
E) Economic Espionage Act

Question 68

A trade secret is any formula, pattern, physical device, idea, process, or other information that provides the owner of the information with a competitive advantage in the marketplace.

Question 69

The federal Economic Espionage Act, passed in 1996, criminalizes ________.

A) copyright infringement
B) utility patent violations
C) trademark violations
D) design patent violations
E) the theft of trade secrets

Question 70

There are two primary reasons to conduct an intellectual property audit. First, it is prudent for a company to periodically determine whether its intellectual property is being properly protected. The second reason for a company to conduct an intellectual property audit is to ________.

A) remain prepared for a Security & Exchange Commission spot inspection
B) remain prepared to justify its value in the event of a merger or acquisition
C) remain prepared for an initial public offering
D) update the value of its intellectual property on its balance sheet
E) make sure no intellectual property has been stolen

Question 71

An ________ is conducted to determine the intellectual property a company owns.

A) intellectual property audit
B) intangible materials audit
C) academic property inventory
D) intellectual materials inventory
E) intangible property inventory

Question 72

An intellectual property audit is conducted to determine the intellectual property a company owns.

Question 73

A ________ is any formula, pattern, physical device, idea, process, or other information that provides the owner of the information with a competitive advantage in the marketplace.

A) patent
B) copyright
C) trademark
D) trade secret
E) certification mark

Question 74

A company's customer list is most commonly protected under ________ regulations.

A) patent
B) copyright
C) trade secret
D) trademark
E) collective mark

Question 75

Trade secret disputes arise most frequently when one firm alleges that a trade secret claimed by another firm is common knowledge, and can therefore be used by anyone.