Deck 9: Protecting Innovation

Question 1

The degree to which a firm is able to capture the rents from its innovation is known as its monopolization potential.

Answer 1

False

Question 2

A common set of international copyright laws automatically protects an author's work throughout the world.

Answer 2

False

Question 3

If an inventor received a utility patent in the United States in June 2004,then his or her patent would be valid as of the same date in member countries of the Paris Convention,if he or she applies for protection in those countries within 12 months.

Answer 3

True

Question 4

Patent laws do not vary from country to country.

Question 5

If the knowledge underlying a particular technology is tacit,competitors will typically find it very easy to duplicate.

Question 6

In the U.S.,patents are valid for a period of 17 years.

Question 7

For technologies in which standardization and compatibility are important,maintaining the integrity of the core product is absolutely essential.

Question 8

If multiple firms benefit from a technology's success,the developer of that technology has a much greater incentive to invest in further developing the technology.

Question 9

A service mark distinguishes the provider of a service rather than a product.

Question 10

If a firm lacks the production capability or expertise to produce a sufficient range of complementary goods,it should support an open technology strategy and utilize forms of sponsorship.

Question 11

Titles and names can be copyrighted.

Question 12

The rights of copyright protection are established by legitimate use of the work.

Question 13

When multiple firms can produce a technology,losing money on the technology in the short term to promote it as a standard is highly risky.

Question 14

In the United States there are no laws to protect trade secrets.

Question 15

If a tobacco farmer invents a new plant that one can smoke without experiencing any negative health effects and can be asexually reproduced,then he or she can receive a plant patent for it.

Question 16

Discovery of scientific principles that pertain to natural laws can be patented.

Question 17

External development efforts typically lack the coordination of internal development.

Question 18

If you live in a country that is a member of the Madrid Union and you register a trademark in your country,that trademark is valid in all other countries of the world.

Question 19

Wholly open systems can be quickly commoditized and provide little appropriability of rents to their developers.

Question 20

Trademarks must be registered before a suit can be brought in federal court against an infringement of the mark.

Question 21

David and Sons,a firm that manufactures home appliances,uses a symbol resembling a lightening strike to distinguish their products from similar products in the market.This symbol is an example of a(n):

A) patent.
B) embargo.
C) statute.
D) trademark.

Question 22

After much research,Angela has designed a new automobile tire that has a unique polycarbonate exterior which cannot be punctured.In the context of patenting this invention,which of the following statements is true under U.S.patent law?

A) It can be patented as it is useful, novel, and not obvious.
B) It can only receive a plant patent.
C) It can be patented because tires are tangible products.
D) It cannot be patented as it is only eligible for a copyright protection.

Question 23

Under U.S.patent law,which of the following is one of the mandatory requirements to be met by a new invention in order to be eligible for receiving a patent?

A) It must be obvious.
B) It must be novel.
C) It must substitute one material for another.
D) It must substitute an element for an equivalent element.

Question 24

Which of the following can be protected by a copyright?

A) Familiar symbols
B) Names of people
C) An improvisational speech that has not been recorded
D) A novel

Question 25

To ensure that companies do not receive patents in countries where they do not intend on setting up production of the invention,some countries have a "working requirement" that says:

A) if the product does not work, it will not be granted a patent.
B) patents will only be granted to people who have been working in their country for at least one year.
C) the invention must be manufactured in the country where the patent was granted within a specified period of time.
D) the workers who manufacture the product must be from the country where the patent was granted.

Question 26

If Pinter receives a utility patent for an invention in the United States in August 2004,by when must he apply for protection in other countries who have signed the Paris Convention to have his patent recognized there as of the same date?

A) 3 days
B) 3 months
C) 6 months
D) 12 months

Question 27

Which of the following is the property right that most effectively protects works of authorship?

A) Patents
B) Embargoes
C) Copyrights
D) Trademarks

Question 28

Tacit knowledge is best defined as the knowledge that:

A) cannot be readily codified or transferred in written form.
B) cannot be patented.
C) has a very low degree of appropriability.
D) is not eligible for copyright protection.

Question 29

The difference between patents and copyrights is that:

A) copyrights can last as long as the copyrighted work is in use, but the registration requires periodic renewal.
B) copyright protection is secured automatically when an eligible work is created and fixed in a copy.
C) patents are a form of protection granted to works of authorship.
D) patents are established by legitimate use of the patented invention.

Question 30

The scientists at Brainstorm,a private medical research firm,have come up with a remarkable medicine for curing cancer.This cancer treatment technology is well protected and cannot be easily duplicated.Based on this information,it would be most accurate to say that this technology:

A) cannot be patented.
B) is easily imitable.
C) is not socially complex.
D) has a high degree of appropriability.

Question 31

_____ specifies a minimum level of copyright protection for all member countries,and requires member countries to offer the same protection to both its own citizens and foreign nationals.

A) The Berne Convention
B) Treaty of Easton
C) The Patent Cooperation Treaty
D) The Madrid Agreement

Question 32

Joe's Burgers is a famous fast food chain that uses a picture of a cook in a red hat as its symbol.It is not legal for you to sell hamburgers with the same identification picture as that of Joe's Burgers because that would be a(n):

A) patent violation.
B) trademark violation.
C) embargo violation.
D) trade secret violation.

Question 33

In the United States patent owners are granted a term of _____ years of protection.

A) 17
B) 20
C) 15
D) 30

Question 34

Sandy lives in a country that is a member of the Madrid Union and has registered her trademark within her country.That trademark is now protected:

A) throughout the world.
B) only in countries which Sandy chooses among the members of the Madrid Union.
C) only in her own country.
D) only in the countries where the product related to the trademark is manufactured.

Question 35

Technology trajectories are path dependent.

Question 36

Which of the following is true of a patent?

A) The laws governing patent protection are universal and do not differ from country to country.
B) A patent granted in one country provides protection in all other countries as well.
C) In the U.S., an inventor can publish an invention up to a year before applying for the patent.
D) Discovery of scientific principles that pertain to natural laws can be patented.

Question 37

Angelo has designed a license plate holder for automobiles that makes theft of the license plate practically impossible.He has filed an application for a patent through the Patent Cooperation Treaty (PCT) office and it has been approved.How long does this application protect his right to file for patent protection in the member countries?

A) 3 days
B) 6 months
C) 1 year
D) 2 ½ years

Question 38

Stevenson,a U.S.citizen,wrote a book called The Ten Commandments of Leadership.He gave away copies of this book to the people who attended his workshops on leadership.The copyright protection for this book:

A) is nonexistent unless Stevenson registers it with the Copyright Office.
B) is in effect from the time the book was created and fixed in a copy.
C) will be valid for only 20 years since the publication of the book.
D) will be valid till Stevenson dies.

Question 39

The difference between copyrights and trademark protection is that:

A) trademark is an indicator used to distinguish the source of a good.
B) trademarks are a form of protection granted to works of authorship.
C) copyrights are established by legitimate use of the work.
D) copyrights can last as long as the copyright is in use.

Question 40

Felix has designed a pair of sunglasses that can be folded and put into a case that easily fits into a shirt or pant pocket.Felix wants to know if he can receive a patent on this invention.Which of the following responses is most accurate under U.S.patent law?

A) He can receive a patent as the invention is only eligible for a copyright protection.
B) He cannot receive a patent since he is merely making the sunglasses more portable.
C) He cannot receive a patent as the invention is not a useful.
D) He can receive a patent as the invention is a tangible product.

Question 41

Roboturbo has decided to make its technology of manufacturing robots open so that external companies can contribute to the development of the technology.It is most likely that as a result of this decision:

A) a much larger pool of talent and resources will try to improve the technology.
B) a greater degree of coordination of research efforts for this technology will develop.
C) the direction of the technology development will be more unified.
D) Roboturbo will be able to control the entry and timing of technology enhancements.

Question 42

What is a trademark? How can the rights to a trademark or service mark be established?

Question 43

LiteShoes has recently obtained architectural control for its shoe glider technology.By doing so,the company has:

A) improved its efficiency in controlling the rate at which the technology is upgraded or refined.
B) limited its ability to measure the product's compatibility with the complements produced by others.
C) limited its potential to influence other firms in the industry.
D) eliminated the possibilities of 'feature creep.'

Question 44

Albert has designed a license plate holder for automobiles that makes theft of the license plate practically impossible.He has limited income and feels that he needs to protect his patent in numerous countries so that he can sell his product there in the future.Discuss how Albert can accomplish this.

Question 45

Singing Cards has decided to make the technology behind the making of musical cards open.Which of the following is likely to be one of the advantages associated with this decision?

A) The technology will accrue more rapid adoptions.
B) The company will be able to monopolize the market.
C) The production of complementary goods will slow down and eventually cease.
D) The technology's installed base will accumulate much more slowly.

Question 46

Edge Inc.manufactures new,advanced camera cars and tracking vehicles used in filmmaking.The demand for these products has been really high.However,the firm is facing a severe lack of resources and is unable to produce the advanced camera cars and tracking vehicles in sufficient volume.To ensure that the rate of adoption is not adversely affected,the company should:

A) protect the technology.
B) invest more on advertisement.
C) diffuse the technology.
D) develop complementary goods.

Question 47

George has come up with a new computer program to help online sellers manage online auctions at sites such as eBay and others.It is superior to just using a spreadsheet to track auctions.He would like his program to become the dominant design,but also wants to earn a profit from all his hard work.What can George do to most effectively meet both of these objectives?

Question 48

What is a copyright? Discuss the provisions of the section 106 of the 1976 Copyright Act.

Question 49

Jonathan recently developed a new kind of camera.He has a working prototype and plans to patent his invention.He needs to raise money for production,so he wants articles about his camera to appear in various publications.Discuss the problems that Jonathan might have to face if he wants to seek patents in other countries in the future.

Question 50

Sally has come up with a unique recipe for cookies and has started selling them through exclusive outlets all around Atlanta.The sales are skyrocketing and her friends tell her to patent the recipe.However,she does not want to reveal her secret ingredients even to any government agency.Is there anything she can do to keep the recipe legally protected?

A) No, not unless she is willing to get her recipe patented.
B) Yes, her recipe can be considered a trade secret and she can legally prevent others from benefiting from her recipe without her permission.
C) Yes, she can declare her recipe to be a trade secret and register it with the U.S. Trade Secret Agency.
D) No, because the recipe, not being a tangible product cannot be protected.

Question 51

Software whose code is made freely available to others for use,augmentation,and resale is referred to as:

A) wholly proprietary systems.
B) patented software.
C) open source software.
D) copyright protected systems.