Deck 8: Licensing and Intellectual Property

Question 1

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

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

Answer 1

C
Explanation: For most of its history, the United States based its patent laws on a "first-to-invent" system. However, beginning in 2013, the United States, pursuant to the America Invents Act, joined the rest of the world by switching to a "first-to-file" system.

Question 2

Licensing agreements require a careful partner selection process that clearly identifies each firm's objectives and details how each plans to meet the other's expectations.

Answer 2

True

Question 3

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.

Answer 3

False

Question 4

As a precondition to receiving trade secret protection, the owner must take reasonable means to maintain secrecy.

Question 5

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.

Question 6

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

Question 7

Global licensing agreements require meticulous planning and a great deal of flexibility.

Question 8

Patents, trademarks, copyrights, and trade secrets are basic types of _____ property.

A) intellectual
B) community
C) commercial
D) patented

Question 9

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.

Question 10

Under the principle of first in time equals first in right, priority ordinarily comes with earlier use of a mark in commerce.

Question 11

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

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

Question 12

A patent:

A) grants its owner the exclusive right to make, use, or sell an invention or process for an indefinite period.
B) deprives competitors of the opportunity to use the invention without the patent holder's consent.
C) creates a permanent monopoly thereby discouraging the creation and utilization of new products and technologies.
D) includes articles or processes falling under the category of physical phenomena or abstract ideas.

Question 13

An American university professor derives a new formula which explains a fundamental principle of nature. In the United States, this formula:

A) can be patented.
B) cannot be patented.
C) can be patented because it is novel.
D) cannot be patented because it is not useful.

Question 14

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

Question 15

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

Question 16

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

Question 17

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.

Question 18

United States trademarks are registered for 20-year terms, although the holder generally can renew the registration repeatedly.

Question 19

For most of its history, the United States based its patent laws on a "first-to-file" system.

Question 20

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

Question 21

Which of the following statements is true of the principle of first in time equals first in right regarding trademark rights in the United States?

A) It is enough to have invented the mark first.
B) It is enough to have registered the mark first.
C) It is based on the priority of its use in any other country.
D) It is bound by the territoriality principle.

Question 22

Trademark dilution laws:

A) protect "distinctive" or "famous" marks from unauthorized uses even when confusion is not likely to occur.
B) are intended at protecting consumers rather than focusing on protecting the investment of trademark owners.
C) permit a company to quickly penetrate a foreign market without incurring the substantial financial and legal risks associated with direct investment.
D) require the licensee to transfer any inventions it derives from the licensed technology to the licensor.

Question 23

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

A) service name
B) service mark
C) trade name
D) trademark

Question 24

Which of the following is an advantage of licensing?

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 25

In recent years, there has been a great deal of concern about companies, called patent _____, who purchase patent rights without the intent of directly using them. Instead, these patent-holding firms demand licensing fees from companies who knowingly or unknowingly infringe upon their patent rights.

A) trolls
B) hawks
C) squatters
D) confiscators

Question 26

A company files a trademark infringement case against another. In order to recover for trademark infringement, the plaintiff generally must show that the:

A) defendant possesses the trademark.
B) defendant used the mark only for insignificant personal reasons.
C) defendant's use of the trademark did not confuse customers.
D) defendant used the mark in commerce.

Question 27

In the United States a copyright generally lasts for _____.

A) the life of the author
B) the life of the author or 50 years, whichever comes first
C) the life of the author or 70 years, whichever comes first
D) the life of the author plus 70 years

Question 28

When the trademark is a descriptive term, _____.

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 29

Which of the following statements is true about a trade secret?

A) A trade secret usually receives legal protection even if its owner did not take reasonable precautions to keep it a secret.
B) A trade secret generally does not include devices and compilations of information.
C) A business may attempt to maintain a trade secret when it has a process or product that is not novel enough to receive patent protection.
D) A business may attempt to maintain a trade secret, but its misappropriation is not considered a breach of law.

Question 30

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) warrantor
B) protector
C) guarantor
D) licensor

Question 31

Which of the following statements is true about patent infringement in the U.S.?

A) The court holds only the infringer accountable for the unlawful activities and accomplices are not considered liable under the U.S. infringement law.
B) There is no effect on the importation of foreign goods that infringe upon U.S. patent rights.
C) A patent holder is entitled to monetary damages in case of infringements.
D) The court grants an automatic injunction in cases of infringement.

Question 32

A trade secret is also called _____.

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

Question 33

Courts are unwilling to provide trademark protection to a term if it is:

A) arbitrary.
B) generic.
C) descriptive.
D) suggestive.

Question 34

The fair use defense against copyright infringement applies:

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 35

An individual may freely use the trade secret of another if he or she:

A) discovers it through reverse engineering.
B) acquires it from a third party who trespassed on it.
C) obtains it by improper means and the secret is not patented.
D) acquires it by breaching the duty of confidentiality regarding the secret.

Question 36

If a term is _____, courts treat it as distinctive and automatically qualify it for trademark protection.

A) generic
B) descriptive
C) arbitrary
D) nonspecific

Question 37

Technology transfer agreements:

A) protect "distinctive" or "famous" marks from unauthorized uses only when confusion is likely to occur.
B) permit a company to quickly penetrate a foreign market without incurring the substantial financial and legal risks associated with direct investment.
C) prevent an intellectual property owner from granting to another the right to use protected technology in return for some form of compensation.
D) assert that priority of trademark rights in the United States depends upon the priority of use anywhere else in the world.

Question 38

In the United States, the copyright period for works for hire:

A) is 110 years from the first publication or 140 years from creation, whichever comes first.
B) lasts for the life of the author plus 70 years.
C) is 95 years from the first publication or 120 years from creation, whichever comes first.
D) lasts for the life of the author plus 120 years.

Question 39

As a general rule, United States trademarks are registered for _____.

A) 20-year terms, although the holder can renew the registration repeatedly
B) 20-year terms, and are non-renewable
C) 10-year terms, although the holder can renew the registration repeatedly
D) 10-year terms, and are non-renewable

Question 40

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

A) contributory
B) vicarious
C) direct
D) indirect

Question 41

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

Question 42

Which of the following statements is true of the confidentiality clause?

A) It restricts the licensor's right to disclose trade secrets after the licensing agreement has ended.
B) During a licensing agreement, the licensor can be permitted to limit the number of people with whom the licensee may share the technology.
C) It cannot be taken up in the court when there is misappropriation because it binds only private parties together.
D) Prior to licensing, it prohibits potential licensees to inspect the technology the licensor provides.

Question 43

Which of the following is true about the intellectual property aspects of social media?

A) The Communications Decency Act penalizes online service providers for the information that originated with third persons.
B) Federal Trade Commission guidelines require that people endorsing a product or service must disclose their affiliation with the producer or service provider.
C) Federal Trade Commission prohibits companies from engaging in widespread monitoring of social media content to head off budding complaints or criticisms.
D) Company employees who conceal their affiliation online and tout their company's products cannot be held liable for unfair and deceptive advertising.

Question 44

Which of the following is a drawback of technology licensing?

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 45

Which of the following is true about the nature of licensing?

A) The person who owns the intellectual property is known as the licensee.
B) Sometimes the licensee is permitted to sublicense all or part of its rights in the technology to a sublicensee.
C) As a general rule, persons who buy from patent holders or their licensees are restricted by the original licensing contract.
D) A customer who has bought a patented product cannot freely resell it without fear of violating the original patent.

Question 46

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

Question 47

In terms of the history of United States patent laws, distinguish between the "first-to-invent" system and the "first-to-file" system.

Question 48

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

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

Question 49

How can a copyright holder recover under the theory of contributory copyright infringement?

Question 50

Discuss the intellectual property aspects of social media.