Deck 11: Intellectual Property

Question 1

The protections of property often do not apply automatically to ownership of intangible knowledge resources that are created.

Answer 1

True
Explanation: The protections of property often do not apply automatically to ownership of intangible knowledge resources you or your business creates. Depending on the type of information, you may be required to undertake certain steps to protect the time, effort, and money spent in developing knowledge in order to transform it into valuable intangible assets.

Question 2

Misappropriation occurs when one discloses information that one was under a duty to keep secret,even if the original acquisition was proper.

Answer 2

True
Explanation: Misappropriation occurs when one improperly acquires secret information through burglary, espionage, or computer hacking. It also occurs when one discloses information that one was under a duty to keep secret, even if the original acquisition was proper.

Question 3

Any private individual or a public firm can bring a case under the Economic Espionage Act (EEA).

Answer 3

False
Explanation: The Economic Espionage Act (EEA) makes it a crime to steal (intentionally misappropriate) trade secrets and provides for fines and up to 10 years imprisonment for individuals and up to a $5 million fine for organizations. Only the federal government can bring a case under the EEA.

Question 4

Although various state laws make intentional trade secret misappropriation a crime,most criminal prosecutions today take place under the federal Economic Espionage Act (EEA).

Question 5

An injunction is an order by a judge either to do something or to refrain from doing something.

Question 6

Trade secrets are required to be unique.

Question 7

If,through your own effort,you are able to recreate the same information that another considers to be a trade secret,a misappropriation has occurred.

Question 8

Employers can only enforce a covenant not to compete if they have a valid business purpose for doing so.

Question 9

A patent is a legal monopoly in copying and marketing a new invention.

Question 10

The justification for intellectual property is the same as for the private property system.

Question 11

Under patent law,even if an invention is otherwise new,it fails the novelty test if it has been described in a publication,sold,or put to public use more than one year before a patent application on it is filed (the one-year grace period).

Question 12

Innocently acquiring a secret from another without knowledge of their theft is generally misappropriation.

Question 13

To protect information as a trade secret,the information must actually be secret,and the business must take reasonable measures to keep it so.

Question 14

Once information is in the public domain,an intellectual property right can be applied to recapture it.

Question 15

LinkedIn is an example of a service mark.

Question 16

Intellectual property systems presume that the long-term benefits of increased information and investment are greater than the short-term costs.

Question 17

To qualify as a trade secret,any form of knowledge protected must have economic value.

Question 18

Design patents apply to the appearance of an article of manufacture,unrelated to its function.

Question 19

Trademarks indicate a specific producer.

Question 20

Trade secrets lose property in knowledge-based resources when they come into contact with suppliers,customers,repair technicians,or even visitors.

Question 21

Which of the following statements is true of intellectual property?

A) Intellectual property requires that certain types of information are not disclosed to the public.
B) The type of information is irrelevant in determining the time, effort, and money required to convert intellectual property to intangible assets.
C) The basic economic system of intellectual property is grounded in the idea of incentives.
D) There is little correlation between research and development (R&D) and intellectual property in determining the competitive advantage of a firm.
E) An economic system based on intellectual property presumes that the long-term benefits of increased information and investment are lower than the short-term costs.

Question 22

The courts can declare a trademark invalid even if the U.S.Patent and Trademark Office has accepted registration.

Question 23

Companies can be considered authors under copyright law.

Question 24

Copyright laws protect inventors rather than authors.

Question 25

The Federal Trademark Dilution Act prohibits the use of a mark that is the same or similar to a "famous" trademark only when the owner of the "famous" trademark can prove public confusion regarding the two marks.

Question 26

One can be liable for materially contributing to another's infringement with knowledge of the infringement.

Question 27

Fair use of a registered trademark is allowed by the Economic Espionage Act.

Question 28

To violate another's trade secret rights,one must ______.

A) misappropriate the information
B) use another's information without permission
C) engage in unauthorized use of another's information
D) steal another's intellectual property
E) engage in buying and selling of trade secrets

Question 29

The Digital Millennium Copyright Act holds Internet service providers liable for illegal copies that pass temporarily through their systems.

Question 30

Garry uses Vizikool,an Internet service provider,to access a file sharing website that can help Garry download copyright protected music.Under the Digital Millennium Copyright Act (DMCA),Vizikool can be held liable for Garry's actions,even though the service provider was unintentionally linking Garry to the file sharing website.

Question 31

Copying for research or teaching are considered an infringement of the owner's property.

Question 32

A(n)______ is an order by a judge either to do something or to refrain from doing something.

A) penalty
B) injunction
C) actual damage
D) punitive damage
E) compensatory damage

Question 33

Copyright deals with original invention,like patents.

Question 34

Which of the following is most likely to be the first step taken by a business to protect its trade secrets?

A) assert its property by preserving secrecy
B) decide who can visit the business and what areas can be seen by them
C) establish the existence of a trade secret as it is critical in controlling valuable knowledge resources
D) identify confidential knowledge-based resources by conducting a trade secret audit
E) require visitors, suppliers, and customers to sign a non-disclosure agreement

Question 35

Misappropriation of a trade secret occurs when ______.

A) a person is able to recreate the same information that the other considers to be a trade secret
B) a person recreates a product after looking at it and figuring out how it works or how it is formulated
C) a person uses another's trade secret and confidential information with authorization
D) a person improperly acquires secret information through burglary, espionage, or computer hacking
E) a person uses his or her own knowledge and understanding to recreate what is another's trade secret

Question 36

The Digital Millennium Copyright Act makes illegal the effort to get around devices used by copyright owners to keep their works from being infringed.

Question 37

The Patent Cooperation Treaty (PCT)allows applicants to obtain a preliminary international examination and then pursue final rights in multiple countries at the same time.

Question 38

If a trademark becomes generic or if it loses its distinctiveness,it also loses its status as a protected trademark.

Question 39

Trade dress refers to a color or shape associated with a product or service.

Question 40

A ______ is any form of knowledge or information that has economic value from not being generally known to others or readily ascertainable by proper means and has been the subject of reasonable efforts by the owner to maintain secrecy.

A) copyright
B) trademark
C) patent
D) company policy
E) trade secret

Question 41

Which of the following statements is true of patent enforcement?

A) The explicit purpose of patent law is to maintain secrecy of inventions for an indefinite time period.
B) Upon the expiration of a patent, an invention is removed from the public domain.
C) Beyond the duration of a patent, the owner can sue those who infringe on it.
D) Usually multiple intellectual property rights can cover the same article.
E) Patent laws include the right to use the invention.

Question 42

Which of the following is true in case a patent expires?

A) It comes under the purview of the Supreme Court to restrict its use in public.
B) It is in the public domain and others may use it without limitations.
C) It is put aside for someone else to acquire.
D) It will be reviewed and reassigned to the same owner.
E) It will be declared as null and void and the invention will be declared useless.

Question 43

Hillward Bakers Inc.has been using a logo with the letters "HB" in blue color and a baker's hat above these letters since its inception ten years ago.This logo has since been connected with Hillward Bakery by its customers.Hobert Bakers Inc.,a newly opened bakery and confectionary chain,uses the same logo.Hillward has not registered its logo,but chooses to sue Hobert.Which of the following is true of this case?

A) Hillward cannot sue Hobert since the logo has not been registered as a trademark.
B) Hillward can sue Hobert since the logo has been used by Hillward and is associated with it.
C) Hobert can defend that Hillward created something that lacks utility and cannot be trademarked.
D) Hobert can defend that Hillward created something that was very obvious.
E) Hillward cannot sue Hobert because logos cannot be patented or trademarked.

Question 44

Which of the following types of intellectual property can be assigned to the invention of a plant that can be reproduced asexually?

A) patent
B) copyright
C) trademark
D) trade name
E) brand mark

Question 45

The Patent and Trademark Office (PTO)assigns a ______ to consider a patent application.

A) claims officer
B) patent examiner
C) patent technician
D) court judge
E) patent issuer

Question 46

The one-year grace period applies to ______ law.

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

Question 47

Which of the following defenses can an alleged infringer use to prove that the patent is invalid?

A) The invention is a novelty.
B) The invention has utility.
C) The invention was previously unknown.
D) The invention is obvious.
E) The invention has produced unexpected results.

Question 48

Which of the following statements is true of patents?

A) Patents are usually created for an indefinite period of time.
B) Many of the basic principles of modern patent law are sourced from the Venetian Patent Act of 1474.
C) Utility patents apply to original and ornamental design for an article of manufacture.
D) Design patents apply to nonobvious, useful processes, machines, compositions of matter, or improvements thereof.
E) According to the federal Economic Espionage Act (EEA), plant patents usually last for 14 years from issue date.

Question 49

Which of the following statements is true of misappropriation?

A) Innocently acquiring a secret from another without having knowledge of its theft is an act of misappropriation.
B) If, through his or her own efforts, one is able to recreate the same information that another considers to be a trade secret, misappropriation has occurred.
C) If one acquires a secret from another who has a duty to maintain secrecy and one knows of that duty, misappropriation has occurred.
D) Knowledge or performance of a duty to maintain secrecy is irrelevant in the demonstration of misappropriation.
E) Recreation of the same information that another considers a trade secret is treated as misappropriation.

Question 50

Which of the following is a function of a trademark?

A) obviousness
B) utility
C) distinctiveness
D) certification
E) guarantee

Question 51

A(n)_____ patent applies to useful,functional inventions.

A) design
B) style
C) plant
D) ornamental
E) utility

Question 52

Which of the following statements is true of the Economic Espionage Act (EEA)?

A) Acts of standard trade secret misappropriation by individuals is beyond its scope.
B) The EEA excludes intentional misappropriation of trade secrets by firms or individuals.
C) The EEA allows local bodies, authorities, private individuals, and others to bring a case of misappropriation but excludes the federal government.
D) One of the provisions of the EEA makes one liable for misappropriation to benefit a foreign government.
E) The EEA does not have any provision that addresses espionage.

Question 53

Which of the following statements is true of trade secrets?

A) A first step involved in protection of trade secrets deals with preservation of secrecy through computer systems.
B) Establishment of the existence of trade secrets is a critical step in the control of valuable knowledge resources.
C) Two or more trade secrets must be unique.
D) Trade secrets lose property in knowledge-based resources when they come into contact with suppliers, customers, repair technicians, or even visitors.
E) Reasonable measures in the preservation of trade secrets exclude physically locking away written material.

Question 54

______ refers to the ability of an invention to produce surprising or unexpected results; that is,results not anticipated by prior art.

A) novation
B) nonobviousness
C) preemption
D) utility
E) tarnishment

Question 55

In the context of utility patents,which of the following terms refers to the details about the subject matter that an inventor regards as the invention?

A) claims
B) novation
C) preemption
D) distinctiveness
E) collective marks

Question 56

Which of the following statements is true of design patents?

A) The duration of a design patent is 14 years from the date of issue.
B) It is given to products that have undergone new compositions of matter or improvements.
C) It is applied to useful, functional inventions.
D) It also covers all other inventions that are under the purview of plant patents.
E) It excludes the appearance of a product in considering the patent for a product.

Question 57

In the context of patentable subject matter,which of the following characteristics about an invention indicates that something is new and different from the prior art?

A) nonobviousness
B) utility
C) novelty
D) tarnishment
E) preemption

Question 58

In the context of patentable subject matter,which of the following refers to doing something through a series of operations?

A) claim
B) process
C) infringement
D) recognizability
E) tarnishment

Question 59

In the context of trademarks,which of the following is otherwise known as recognizability?

A) distinctiveness
B) nonobviousness
C) novelty
D) utility
E) preemption

Question 60

Which of the following is true of a trademark?

A) A trademark is a form of legal and civil property.
B) One can have rights in a trademark only if he or she has registered it.
C) If a trademark is unregistered, it is open for public use.
D) A trademark is firmly associated with an inventive act and excludes others from making, using, or selling the invention.
E) Owners can sue for infringement and claim rights on a trademark even if they have not registered it.

Question 61

A ______ refers to a public meaning that is different from its meaning as a person's name or as a distinctive term,a public meaning that makes the name or term distinctive.

A) primary meaning
B) secondary meaning
C) trade meaning
D) principal meaning
E) supplemental meaning

Question 62

A trademark becomes ______ when,through the owner's actions or another's inappropriate use,the mark becomes synonymous in the consumers' mind with the name of the goods or services.

A) infringed
B) copied
C) generic
D) distinctive
E) substituted

Question 63

For a name to be trademarked,______.

A) it must be listed on the Principal Register for five years without being challenged
B) it must be listed on the Supplemental Register for five years and have acquired a secondary meaning
C) it must be listed without restrictions and the trademark owner must notify the Patent and Trademark Office (PTO) every year that the trademark is still in use
D) the Patent and Trademark Office (PTO) will deny descriptive terms for trademark protection under any circumstance.
E) it must be listed on the principal register for one year and on the secondary register for five years.

Question 64

Which of the following is a defense to a charge of trademark infringement?

A) The statutory period protecting the trademark has expired.
B) There is a good chance of the public being confused.
C) The use is a "fair use."
D) The mark is distinctive.
E) The mark or symbol is considerably different.

Question 65

As part of the trademark application process,the Patent and Trademark Office places a proposed mark in the ______,which gives existing mark owners notice and allows for objection.

A) Official Gazette
B) Federal Register
C) legal section of major newspapers
D) congressional record
E) Principal Register

Question 66

In determining whether a particular use is a fair one,a court will consider ______.

A) the distinctiveness of the copyright
B) the amount of profit expected by the user claiming the fair use
C) the amount and substantiality of the portion used in relation to the copyrighted work as a whole
D) the royalties awarded to the inventor before using the copyright since copyright laws protect inventors
E) the degree of damage caused

Question 67

A school's seal and logo are examples of which type of intellectual property?

A) service marks
B) certification marks
C) collective marks
D) patents
E) brand marks

Question 68

The fair use of a registered trademark defense was established in the ______.

A) Lanham Act
B) Federal Trademark Dilution Act
C) Economic Espionage Act
D) Sarbanes-Oxley Act
E) Consumer Protection Act

Question 69

Which of the following protects a "famous" trademark,even if the owner is unable to prove that the public is confused by another's use of a similar mark,and provides the owner with the infringer's profits and actual damages?

A) The Lanham Act
B) The Consumer Protection Act
C) The Trademark Trial and Appeal Board
D) The Robinson-Patman Act
E) The Federal Trademark Dilution Act

Question 70

When you purchase an item from Globus Corp.,they place the item in a paper bag with handles and vertical yellow,blue,and white stripes.Even without seeing the words "Globus Corp." on the bag,many people recognize that the purchase is from Globus.The bag's coloring and design is considered its ______.

A) trade dress
B) certification mark
C) collective mark
D) service mark
E) trademark

Question 71

Which of the following is actually intended to be used by someone other than the owner?

A) certification marks
B) collective marks
C) service marks
D) trademarks
E) brand marks

Question 72

The Nike "swoosh" and McDonald's golden arches are examples of which type of intellectual property?

A) copyright
B) patent
C) certification mark
D) trademark
E) novelty

Question 73

According to the Lanham Act of 1946,which of the following is a mark representing membership in a certain organization or association?

A) certification mark
B) product mark
C) service mark
D) collective mark
E) secondary mark

Question 74

Which of the following is true of trade dress?

A) It refers to the utility and nonobviousness of an invention.
B) It can be protected under law even without a registration.
C) It is another form of a patent troll.
D) It is protected by the law from being copied as long as it is distinctive.
E) It usually excludes distinctive store decorating motifs.

Question 75

Civil violation of a trademark or a patent is termed ______.

A) breach
B) infringement
C) repudiation
D) copy
E) injunction

Question 76

______ refers to a colored design or shape associated with a product or service.

A) Patent
B) Trade dress
C) Copyright
D) Trademark
E) Blurring

Question 77

Radford School is certified by the United Federation of Planets Academy of Business and Managements Schools.The icon of the school used on its website has the words "Member of UFPABMS." This icon is a ______.

A) service mark
B) brand mark
C) trademark
D) promotion mark
E) collective mark

Question 78

Which of the following is true of copyright law?

A) It deals with invention that is original, nonobvious, and a novelty.
B) It protects ideas and facts.
C) It protects the design, color, or shape that is associated with a particular product from being copied.
D) It protects original, creative expression.
E) It protects inventors rather than authors.

Question 79

Which of the following is an instance of trademark infringement?

A) Intentional use of the owner's mark
B) an accidental design of one's own mark too similarly to another's
C) invention that produces surprising and unexpected results
D) an act of disclosing information that one had a duty to keep secret
E) an act of improperly acquiring secret information through burglary, espionage or computer hacking

Question 80

The payment of a fee in connection with permission to use protected copyrighted works is called a(n)______.

A) royalty
B) revocation
C) injunction
D) novelty
E) commission