Deck 18: Knowledge-Based Businesses and Intellectual Property

Question 1

Stealth Inc designs and manufactures a variety of products. Some of those products are marketed to ordinary consumers, while others are marketed toward governments. Stealth Inc is also aware, however, that its products often end up in the hands of criminals and terrorists. Which of the following statements is TRUE?

A) because of the requirement of "usefulness," a patent will not be granted unless an invention is generally beneficial to the public
B) A patent will not be granted for a new invention unless Stealth Inc can first show that there is a market demand for such a product.
C) Patent protection is available for entirely new inventions, but not for mere improvements to pre- existing products.
D) An invention may be granted patent protection even though it is manufactured with an illicit purpose in mind.
E) none of the above

Answer 1

D

Question 2

A distinguishing guise

A) refers to the shape of a product.
B) is an award given by a government department for outstanding inventions.
C) is most relevant to industrial design.
D) occurs when a manufacturer tries to hide a secret beneath several layers of useless information.
E) is a breach of copyright.

Answer 2

A

Question 3

Jaime has been hired as a screenplay writer by a television production company. Although he is a very creative individual, Jaime has recently started suffering from writer's block. In order to unblock himself, Jaime picked up a collection of Shakespeare's works and began combing it for ideas. He finally drafted a screenplay about a young couple from feuding families whose love, though strong, ends in tragedy. Which of the following is TRUE of Jaime with respect to the authorship requirements of copyright law?

A) Jaime does not meet the requirements because scripts are not copyrightable works.
B) Jaime does not meet the requirements because he may be violating the copyright for Romeo and Juliet.
C) Jaime does not meet the requirements because his work is not original.
D) Jaime does not meet the requirements because his work is not novel.
E) none of the above

Answer 3

E

Question 4

Henrik successfully sued Acme Inc for violation of his moral rights. Which of the following statements is most likely to be TRUE?

A) Acme Inc was held liable even though it had previously purchased copyright in the relevant work.
B) because of the importance of moral rights, Henrik was able to win his case even if he previously had done everything possible to waive those rights
C) Henrik must still own the work to which the moral rights are attached.
D) Henrik must have satisfied the court that he came to the courts with "clean hands" in the sense that he had not acted as immorally as Acme Inc.
E) In addition to violating Henrik's intellectual property rights, Acme Inc must have acted in a way that violated the Criminal Code.

Question 5

Raoul Newmen has been operating a shoe store, Newmen's Shoes, in Ottawa for the past 10 years. His business is registered in Ontario as an Ontario Corporation. His store sign reads: NEWMEN'S SHOES™. In 1999, a mega- shoe chain from the US, NewMensShoes, opened up its first Ottawa location. NewMensShoes has been operating in Canada since 1989, at which time it had registered its Canadian trademark: NewMensShoes®. NewMensShoes is irritated because it spends a fortune on advertising, yet people inevitably make the mistake of going to Raoul's store for shoes. Raoul is irritated because he had been running his store without hassle until the mega- shoe corporation showed up. NewMensShoes has started an action claiming trademark infringement. Which of the following is most accurate?

A) If there is a trademark dispute, the onus will be on Raoul to prove that he held rights to the name first.
B) Raoul should have put the symbol ® on his sign.
C) If there is a trademark dispute, the onus will be on NewMensShoes to prove that it held rights to the name first.
D) Raoul is not allowed to put the symbol ™ on his sign.
E) There is no trademark infringement.

Question 6

Which of the following statements about an episode of "This Hour has 22 Minutes" best reflects Canadian copyright law?

A) The show is subject to copyright only if it is broadcast live.
B) The show is not subject to copyright because broadcasts are not protected by intellectual property law.
C) The show is subject to copyright only if it is recorded on a fixed medium.
D) The show is subject to copyright only if it meets the CRTC's Canadian Content regulations.
E) The show is not subject to copyright because, once aired, it is considered to be in the public domain.

Question 7

Accounting for profits might be an appropriate award in which of the following cases?

A) The holder of patent on a special electric car battery is caught off- guard when a competitor begins successfully selling unlicenced identical car batteries.
B) A company's sales dip a year after a competitor develops a similar line of product.
C) An Internet service provider loses some of its customer base after Internet cable is made available in a community.
D) A company known for interfering with patents disassembles a patented electric toothbrush to discover how the toothbrush works.
E) none of the above

Question 8

BrainFood is a brand used to promote a concoction of natural ingredients sold in natural health stores as a supplement to help with memory retention. Recently, MindFood has come onto the market and has begun selling supplements that, although composed of different ingredients, are also meant to help with memory loss. The packaging is similar, and the two products are sold in the same stores. Which of the following is most likely TRUE?

A) MindFood is infringing Brainfood's trademark.
B) MindFood is infringing BrainFood's patent.
C) MindFood is immune from suit because it is composed of ingredients not found in BrainFood.
D) MindFood is infringing BrainFood's copyright.
E) none of the above

Question 9

Remi is a musician who is involved with a charitable organization that helps to fight poverty. In addition to a wide variety of other activities, the charity puts on performances at schools to teach youngsters about poverty. Remi recently heard an anti- poverty song on the radio that he began incorporating into his performances. The song was such a hit that he began incorporating it into his commercial performances at local bars and music halls. At no point has Remi sought any permission to perform the song. The copyright holder recently saw one of Remi's performances on MuchoMusico and has decided to take action. Which of the following is most accurate?

A) The copyright for the song was infringed at the commercial performances but not at the school performances.
B) The copyright for the song was infringed at both the commercial performances and at the school performances.
C) Performance rights are not subject to Canadian copyright law.
D) The copyright for the song was infringed at the school performances but not at the commercial performances.
E) The copyright for the song was never infringed.

Question 10

Which of the following is TRUE of a breach of confidence?

A) It occurs when a patent is infringed.
B) It requires that the information be known by less than 50 people.
C) It can only be enforced if it results in direct financial loss.
D) It is morally wrong, but not legally enforceable.
E) none of the above

Question 11

In Canada, when does a work generally become part of the public domain?

A) upon publication
B) 20 years following the end of the calendar year in which the author dies
C) upon registration with the Copyright Board
D) as soon as the author dies
E) 50 years following the end of the calendar year in which the author dies

Question 12

Distraught after having lost his cat, Jimmy Corpini drew up some designs for the "Kitty Caller Collar." The collar was designed so that when its wearer strays beyond certain limits, a signal is sent to a receiver, which pinpoints the location of the collar. In anticipation that one day he would get another cat, Jimmy printed off a copy of his design and emailed a copy to himself. A year later, Jimmy moved, and Takashi moved into his home. While cleaning the house, he came across the design. An engineer by trade, and cat lover by nature, Takashi copied the designs and took them to the Patent Office, where he applied for a patent on the collar, which he renamed the "CatchMeow." In due course, the patent was granted. Six months later, on the advice of an entrepreneur friend, Jimmy produced 100 Kitty Caller Collars, and began selling them at pet shows. He was unaware that Takashi had patented his invention. The collars sold quite well, and Jimmy became something of a local star in the community newspapers. Soon thereafter, Jimmy received a letter from a stern lawyer informing him that he had to stop selling his Kitty Caller Collars, because by so doing he was infringing the patent for the CatchMeow. Which of the following is the most accurate assessment?

A) Jimmy is liable for patent infringement, because Takashi owns the patent.
B) Jimmy is not liable for patent infringement, because his email sufficiently protects his patent.
C) Jimmy is liable for patent infringement, but will be able to benefit from an exemption, given that he is the true inventor.
D) Jimmy is not liable for patent infringement, so long as he can prove that he independently came up with the design for the kitty collar.
E) Jimmy is not liable for patent infringement, since he is the true inventor.

Question 13

Exclusive possession can be distinguished from non- rivalrous possession in that exclusively possessed assets

A) can be more easily controlled than non- rivalrous assets.
B) are synthetic resources while non- rivalrous assets are natural resources.
C) can be possessed by numerous people at the same time, but the reverse is impossible.
D) tend to be intangible, whereas non- rivalrous assets are not.
E) none of the above

Question 14

Which of the following is most closely associated with the notion of moral rights?

A) the right to licence software in Canada
B) the right to publish the lyrics of a song
C) the right to reproduce an essay in a textbook
D) the right to present a piece of art in an exhibition
E) the right to have a photo attributed to its photographer

Question 15

Woody has invented a method for instantly analyzing perfume, breaking it down into its component chemicals and reproducing the scent. He is so excited about his invention; he wants to tell the world. Which of the following examples of disclosure would be fatal to a patent claim?

A) He invites local cosmetics store owners over to see if any of them would be interested in buying the invention.
B) He presents the invention to his lawyer to ask for advice on how to go about patenting it.
C) He tells his number one employee, on faith of a signed confidentiality agreement.
D) He tells his wife that he thinks he has finally cracked the scent code.
E) None of the above would be fatal to patentability.

Question 16

Big and Bad Motors has come out with its newest line of SUV. They market the line under the slogan, "Enjoying the countryside has never been so easy®." A group of guerrilla environmentalists, angry about increased exhaust emissions from the SUVs, has started up a billboard campaign with a photo of an SUV in a diseased forest, surrounded by pollution and sick animals. Beneath the photo reads the caption "Destroying the countryside has never been so easy." The owners of Big and Bad Motors decide to take legal action. Which of the following claims is Big and Bad most likely to initiate?

A) patent infringement
B) identity theft
C) trademark depreciation
D) passing- off
E) copyright infringement

Question 17

Achmed has invented a mechanism for building barbwire fences. It consists of a motorized machine that stretches the barbwire between two fence posts. It then wraps the barbwire around the post, ensuring that the fence is stable. The beauty of the mechanism is that at no point must a person touch the wire, thus drastically reducing the fear of injury. However, there are still a few glitches in the system. For example, the machine stretches the wire too much, causing the wire to snap before the fence is complete, and flail about until the operator turns off the machine. This increases the potential safety hazard, as the broken barbwire swings about dangerously until the machine is turned off. Additionally, if the operator does not turn it off in time, the loose barbwire ends up damaging the machine. Achmed is convinced that with a bit of tinkering, he can get it working better. Which of the following is TRUE of Achmed's invention?

A) It is not patentable but may be protected as a trade secret.
B) It is not patentable, but may qualify as an industrial design.
C) It is patentable, so long as Achmed has not told others of its existence.
D) It is patentable, so long as it has not already been patented by someone else.
E) It is patentable, so long as within sixty days of filing the patent application, the design is fixed to avoid all the glitches.

Question 18

While visiting his parents in Toronto, Egon went to a see a local band at a bar. He purchased the compact disk they had for sale, and took it back to his hometown in Victoria, BC. Once there, Egon made copies of the compact disk onto tapes and sold them at his record store for $5 each. Which of the following is TRUE?

A) It is likely that Egon infringed the band's copyright, because in Canada it is illegal to make a copy of an audio recording without permission from the artist.
B) It is likely that Egon infringed the band's copyright, because in Canada it is illegal to make a copy of an audio recording without permission from SOCAN.
C) It is unlikely that Egon infringed the band's copyright because audio recordings are not protected by copyright.
D) It is unlikely that Egon infringed the band's copyright because BC and Ontario are subject to separate copyright regimes.
E) It is likely that Egon infringed the band's copyright, because in Canada it is illegal to make a copy of an audio recording for commercial purposes.

Question 19

CobeCola develops a line of sugar- free colas and plans to market it towards people on diets and to people who are worried about tooth decay. Which of the following best illustrates a certification mark that may appear on its can?

A) the company's distinctive logo of a bottle spraying cola as if it were a fountain
B) the seal of the governing dental association
C) the bilingual list of ingredients found in on the side of the can
D) the name CobeColaLite, with a TM in a circle next to the name
E) the slogan "Try it, it's diet!" on the can

Question 20

The capital letter D appears inside of a circle signifies that a product is

A) in the public domain.
B) deemed to be patented.
C) a registered design.
D) subject to a designated code of confidentiality.
E) under development.

Question 21

Hector Journale is the publisher of a major national newspaper. Following a string of political scandals, Hector comes up with an excellent idea for a weeklong series of articles on the moral shortcomings of politicians before they entered politics. Hector is worried that if his competitor, Linda Laprinte, catches wind of the series, she will scoop him. In order to protect his idea, Hector could do which of the following?

A) mail the idea for the series to himself and leave the envelope sealed
B) exact confidentiality agreements from any staffers who may find out about the series
C) copyright the idea for the series
D) copyright the titles for the articles he is thinking of
E) apply for a copyright for the future articles

Question 22

Siesta Inc owns and operates a chain of Mexican- food restaurants across Canada. The restaurants have become wildly popular, largely because each restaurant is carefully designed and decorated to evoke an authentic Mexican feel. The company is, however, worried that competitors may begin to emerge and draw away customers. Siesta Inc therefore wants to protect itself as much as possible under trademark laws. Which of the following statements is TRUE?

A) Siesta Inc will not enjoy any protection until it registers its trademarks.
B) Siesta Inc is entitled to sue for trademark depreciation only if it can prove that customers became confused and mistakenly thought that restaurants owned by another company were part of the Siesta chain of restaurants.
C) Siesta Inc can trademark the appearance of physical objects, such as its restaurants, its logo, and its menus, but it cannot trademark a phrase, such as an advertising slogan.
D) Siesta Inc is entitled to register a trademark for the shape and design of its "Sombrero Salad," which is a unique dish created by the company's head chef.
E) Although Siesta Inc is entitled to use ® to designate a registered trademark, it cannot use any symbol to designate an unregistered intellectual property interest.

Question 23

Marika spends her days in the lab trying to create new and useful inventions. She would like to protect her monopoly over her inventions but only has time to submit one patent application at this time. She would like your advice on which of her following creations is the most likely to be granted a patent in Canada?

A) none of the above are likely to be granted a patent in Canada.
B) a 'one- click' ordering system for buying mouse cages from her website.
C) a new method for assembling mouse cages.
D) a specific species of mouse, which after years of investigation, she has identified as the most appropriate for diabetes research.
E) computer software that she designed in order to keep her research notes organized.

Question 24

Which of the following would constitute a breach of copyright when carried out without permission from the copyright owner?

A) quoting several lines from an encyclopedia in a college assignment
B) performing a dance routine that someone else had choreographed
C) selling copies of Shakespeare's Hamlet
D) making a copy of a musical tape that you borrowed from your friend
E) all of the above

Question 25

Zitsaway is the ultimate miracle cream for teenagers. Using a special combination of chemicals, Zitsaway is able to clear up the worst cases of acne. Truman, a sixteen- year- old nerd with particularly bad acne thought that he had finally found the answer to all his social problems when he began using the cream. Although the cream worked like a charm, at $25 a bottle the cream took up most of his allowance. Being the nerd that he was, Truman took the cream to his chemistry lab where he and his teacher managed to identify all the components of the cream. Fortunately, all the components were easily procured and easily combined. Which of the following is TRUE?

A) Truman may sell the cream to kids at school, so long as he does not mass- market the product.
B) Truman must buy or licence the patent for Zitsaway before manufacturing any for personal use.
C) Truman must pay the patent owners of Zitsaway royalties before making the cream for personal use.
D) Truman may make the cream for personal use without fear of infringing the Zitsaway patent.
E) Truman must get permission from the patent owner of Zitsaway before making the cream for personal use.

Question 26

Avery and Bolton are two gifted architecture students at the University of the Outaouais. Both have been involved in a competition to come up with a design for a particularly immense structure. In class one day, one of their professors exposes them to a formula which, when applied in a particular manner to the competition, leads to a new, never- before- thought- of design for particularly immense structures. Independently, both students develop virtually identical designs for the competition. Avery is so enthused by his new discovery that he registers his copyright in the design. Tanner, a slightly lazier student, was considering entering into the same competition. Snooping around Bolton's desk one day, Tanner saw Bolton's design for the super structure. Tanner copied the design, and sold it to an architecture firm. Which of the following is TRUE?

A) Tanner is infringing Avery's and Bolton's moral rights.
B) Tanner is not breaking any copyright laws.
C) Tanner is infringing Avery's and Bolton's copyright.
D) Tanner is infringing Bolton's copyright but not Avery's.
E) Tanner is infringing Avery's copyright but not Bolton's.

Question 27

Roula, a law professor, recently read a fascinating article about online privacy in Canadian Science and Technology Weekly, a Canadian magazine. She was so impressed with the article that she clipped it for future reference. Later in the term, a scandal erupted at the University when it was discovered that professors' emails were being surveilled. Incensed, Roula photocopied the article and slipped a copy of it under every professor's door in the faculty. There are 50 professors in the faculty. Which of the following is most likely TRUE?

A) Roula's photocopying is considered fair dealing because she did not sell the copies.
B) Roula's photocopying is considered fair dealing so long as proper attribution was made to the author and the source.
C) Roula's photocopying is considered fair dealing because she is a professor, and copying articles in a University setting is permitted.
D) Roula's photocopying may be considered fair dealing, but she will have to defend her action, taking into account her purpose, the character and amount of her copying, whether or not she had alternatives to copying and the effect of her copying on the article in question.
E) Roula's photocopying is considered fair dealing because she was using the article for educational purposes.

Question 28

James owns a software development company. He toils day- in and day- out to develop new ideas. For James, the laws of intellectual property are useful because

A) the ideas James develops may be easily reproduced and thus have no natural scarcity of their own.
B) this legal regime provides him with an incentive to create new ideas.
C) by rendering the supply of information inadequate, a market for James's ideas is created.
D) information, once developed, is non- rivalrous, and thus requires special protection.
E) all of the above

Question 29

Intellectual property law aims to balance the rights of creators against the public interest. Which of the following statements best exemplifies a benefit to the public interest?

A) Copyright law gives a photographer the exclusive right to reproduce his pictures.
B) Patent bargaining grants an inventor a twenty- year monopoly over his invention.
C) Patent law allows a student to build a replica of a patented invention for private research.
D) Trademark law allows a trademark holder to seek a legal remedy when her trademark is infringed.
E) Trade secrets allow a company to keep a steak recipe secret from the public indefinitely.

Question 30

Rory Parisien has invented a mesh screen to keep bugs out of his cottage in the summer. Being a good steward of the environment, Rory had the unique idea of making the mesh biodegradable, so that when he replaces the mesh, he can just throw it away without harming the pristine environment around his cottage. There is, however, a problem with the mesh in that it biodegrades too easily. After a rainstorm or two, the mesh begins to disintegrate. Moreover, secretions from various bugs can have the same effect. Rory submits a patent for the biodegradable mesh screen designed to keep out bugs. Which of the following assessments is most accurate of his application?

A) It is patentable, despite its flaws.
B) It is patentable, so long as it is deemed non- obvious and novel.
C) It is not patentable because it will not be considered useful.
D) It is not patentable because it will not be considered novel.
E) It is not patentable because there would not be much of a market for the product.

Question 31

Which of the following is an example of a registrable industrial design?

A) the patent for an industrial size dishwasher
B) the secret recipe for a new brand of chili
C) the maple leaf shape of a maple flavoured cookie
D) the green colour of glass used to bottle lemon- lime sodas
E) the Canadian Dental Association's mark on a tube of toothpaste

Question 32

A government official has appointed you to a committee that is responsible for suggesting improvements to the government's own intellectual property legislation. Which of the following statements is TRUE?

A) The government that appointed you is located in Ottawa.
B) If the government wants to provide copyright protection to original works created outside of Canada, it will need to amend the relevant statute.
C) because industrial designs and breach of confidence are both governed by the traditional common law rules, there is no legislation in either area
D) Although there is only one Copyright Act in this country, there are fourteen Patent Acts.
E) because intellectual property legislation is intended to create a complete regulatory scheme, there will be no need to consider any case law

Question 33

Thierry is a successful artist, known across Canada for his marvelous portraits of famous Canadians. His work has been exhibited in the National Gallery, and he is beginning to acquire an international reputation. Recently, Thierry sold one of his paintings to the GuerillaGallery, not realizing that the owners of the GuerillaGallery had nothing but scorn for famous artists, insisting that they have sold out their creativity for the sake of the almighty dollar. The owners promptly took a large black felt marker and added a moustache to the painting's subject and drew an arrow poking through its head. When Thierry discovered the "act of these vandals" and further discovered that these "vandals were actually exhibiting the work," he was incensed. Despite his own disdain for lawyers, Thierry has decided to take legal action. His action ought to take the form of which of the following?

A) a knock- off claim
B) a moral rights infringement
C) a trademark infringement
D) a passing- off claim
E) a trademark depreciation claim

Question 34

Which of the following statements about trade secrets is true?

A) Disgruntled employees are unable to register patents for the subject matter of trade secrets.
B) Trade secrets can help keep an information- based asset a secret until it can be used or sold.
C) Competitors who independently create the subject matter of your trade secret are unable to patent their ideas.
D) Trade secrets cannot be patented at a later date because they violate the disclosure rules of patent law.
E) all of the above

Question 35

Louisa is a lemonade manufacturer in Ottawa. Since 1985, she has marketed her juice under the trademark: FreshSqueeze. Late last year, a less expensive lemonade began appearing in grocery stores bearing a remarkably similar label. When examined closely, the label for the new lemonade actually says Fresh- n- Squeeze, but the 'n' is so small that it is hardly noticeable. The rest of the label, including colours and fonts, appears to be nearly identical. Louisa is upset because her lemonade sales have fallen drastically since it appeared on the shelves. Louisa decides to sue for passing- off. If Louisa is successful, what might she be able to force her competitor to do?

A) reimburse Louisa for lost sales during the period that the two lemonades were on the shelves
B) stop selling the lemonade under that name
C) pull the competitor's lemonade of the shelves indefinitely
D) share profits earned from Fresh- n- Squeeze sales
E) all of the above

Question 36

Of the following, which are only protected if they are registered?

A) company logos
B) industrial designs
C) trademarks
D) catchy slogans
E) licencing rights

Question 37

Avi is a remarkably creative person. He works in several different mediums, meaning that his creations take different forms: sometimes written, sometimes sung, sometimes sketched, and so on. Avi recently became party to a transaction that involved an advance of royalties. That most likely means that

A) Avi submitted a manuscript to a publishing company in the hope that that company would pay him for the work.
B) Avi has paid the government for the right to commercially exploit a work that he did not create.
C) Avi sued another person for the violation of an intellectual property right, and the parties settled their case out of court.
D) Avi received an interest- free sum of money.
E) the government has informed Avi that an intellectual property law will be changed as soon as the relevant statute receives assent from the Governor General, who will be acting as the Queen's representative.

Question 38

A- Plus Health has come up with a previously undiscovered method of bonding skin back together after it has been cut. The new method allows doctors to use a series of tape- like strips that serve to pull the skin together and hold it in place. The benefit to the invention is that by using the tape, stitches are no longer necessary. Although the company cares about people's health, it also cares about its bottom line. It knows that if everyone discovers how the tape works, anyone would be able to manufacture this medical treatment. Which of the following is TRUE?

A) A- Plus Health can patent the treatment so long as it is novel, ingenious, and useful.
B) A- Plus Health can patent the treatment but will not be able to stop others from developing similar product lines.
C) The treatment is unpatentable because it is too abstract.
D) The treatment is unpatentable because all health- related inventions are unpatentable.
E) The treatment is unpatentable for public policy reasons.

Question 39

Which of the following statements is TRUE with respect to registration of intellectual property rights?

A) registration is required for both industrial design and breach of confidence
B) registration is mandatory for trademarks, but not for copyright
C) registration is required for patents, but not for copyright
D) registration is mandatory for copyright, but not for trademarks
E) none of the above

Question 40

Silken Inc manufactures a wide range of bath products. Its best- selling item is the one litre bottle of "Silky Soak" water softener. A large part of the reason for that success is the distinctive and easily recognized bottle in which "Silky Soak" has been sold for many years. Silken Inc recently applied to protect the rights that are connected with the appearance of the "Silky Soak" bottle. That application was, however, rejected. As a matter of law, that rejection may be due to the fact that

A) Silken Inc's application was based on the colour of the bottle.
B) Silken Inc's application was based on the materials used in the bottle
C) the unique design of the bottle is purely functional in nature.
D) Silken Inc had successfully applied for the same protection ten years earlier.
E) all of the above

Question 41

For an invention to be considered non- obvious, the general public must not have been able to come to the solution directly and without difficulty.

Question 42

A manager at a textile factory suspects his employees are feeding his competitors information about new textiles he is developing. In order to make them aware that this is unacceptable, he reminds them all that any information about his textiles is confidential and must not be disclosed. This is sufficient to ensure that the information is considered confidential.

Question 43

Only works produced by Canadians, or in Canada, are protected by Canadian copyright law.

Question 44

Distinguishing guises cannot be registered as they can only be protected through the common law tort of passing- off.

Question 45

Trevor is a struggling, but very talented, musician. Over the years, he has written many great songs, but has yet to receive any media attention for his good work. Frustrated that he has never been able to achieve commercial success, he recently began to explore the idea of selling or licencing his work to other, already established, pop artists. He comes to your record label seeking to sell certain parts of his copyright. How do you foresee being able to exploit Trevor's work? Illustrate how Trevor's work could be unbundled and exploited. Does Trevor run any risks in transferring his rights?

Question 46

A patent can be rejected for public policy reasons, even if all the patent criteria are met.

Question 47

Knock- offs and trademark depreciations are two examples of trademark infringement. How do the two differ? Provide an example of each.

Question 48

Carlos, a baseball fanatic, has spent most of his adult life in a workshop, trying to invent a better baseball bat. Finally, after having spent many years and most of his savings, Carlos succeeded in creating a bat out of an aluminum alloy that results in sending the baseball further than if the ball was hit with a standard bat. Ecstatic, Carlos decides to hire a patent agent to help him secure a patent. But he contacts you for advice about his options for exploiting his patent, and to discuss the risks and benefits of each potential avenue.

Question 49

Whitemud Toothpaste has been recognized by the Canadian Dental Association as preventing tooth decay. As a result, its manufacturer put the Association's logo on its tubes of toothpaste. The correct symbol to place next to the certification mark is ©.

Question 50

A certification mark is similar to an industrial design, in that both refer to industry standards.

Question 51

In Canada, trademark protection is only afforded to registered trademarks.

Question 52

Unbundling copyright means breaking the copyright down into several discrete rights.

Question 53

Explain what is meant by the novelty requirement in patent law. Is it sufficient for a product to be the first one on the market?

Question 54

Thinking he has invented a new type of mousetrap, Homer begins to market his product. Unbeknownst to him, Olga already owns the patent for an identical mousetrap. Because he did not copy Olga's design, Homer is not infringing her patent.

Question 55

Softwear Inc is a company that develops "smart clothes"-clothes that change in temperature depending on a number of factors such as the weather and the amount of activity the wearer is engaging in. Although Softwear owns several patents from which it generates much of its revenue, it is constantly developing new products. Recently, due to a downturn in the economy, Softwear has had to lay off many of its workers. Its executives are worried about disgruntled workers using the knowledge they have of products still in development at Softwear to obtain jobs with Softwear's competitors. Suggest an avenue that Softwear may wish to pursue in order to protect its information- based assets.

Question 56

For many years, George Blake worked for the Canadian spy agency. The authorities eventually discovered, however, that he was actually working as a double agent, and that he was passing government secrets to countries that are unfriendly towards Canada. He was convicted and sent to prison, but he managed a daring escape, and fled out of the country. Because he is now
well- known, and therefore cannot work as a spy, he has written a book in which he reveals several pieces of information that the Canadian government still considered secret and enormously important. A court could, among other things, order George to pay his profits from the book over to the Canadian government.

Question 57

T- Bone Steak, a Canadian pop act, just finished writing a new song. The band does not need to register their copyright ownership in order to protect their copyright.

Question 58

Novelty is one of the criteria for copyright protection.

Question 59

A Canadian inventor has up to 15 months to file a patent application in another Paris Convention
member state in order to gain protection in that country.

Question 60

When a party succeeds in showing that another party has been unjustly enriched, the appropriate remedy is an injunction.

Question 61

Double Burger is a musical sensation in the local rap world of Moosejaw. His shows are always sold out and he is on the verge of being signed to a record label. Double Burger's songs tend to incorporate samples from other songs, mostly cheesy pop songs from the fifties. His friends tell him that it is okay to use the samples because he does not use the songs in their entirety, but only short excerpts. He comes to you for a second opinion on copyright infringement. Advise Double Burger on how to proceed.

Question 62

A group of engineering students set themselves to the task of creating a motor powerful enough to run a car using solar power rather than gasoline. Two years into the project the students managed to create a prototype vehicle that was functional and environmentally friendly. The media was called, and several newspapers ran stories about the students, and how the students were going to try to sell their idea to a car manufacturer. Soon after, the students received a letter from an oil company informing them that it already owned the patent for the solar motor and that the students' motor, if sold, would be infringing the oil company's patent. Is the oil company correct? It turns out that the oil company held the patent, but was not marketing it for fear of losing profits on its oil sales. What does this situation say about how patent law balances private rights with the public good?

Question 63

Explain why fixation is an essential element of any copyright claim. Should the originality requirement be sufficient? In Gould Estate v Stoddart Publishing Co, a journalist named Jock Carroll visited with Glenn Gould, who was soon to become a world famous pianist, but at that point was still a largely unknown artist. As the pair chatted about a range of topics, Carroll snapped 400 pictures, tape recorded some discussions, and wrote notes for others. After Gould's death many years later, Carroll published a book containing photographs and quotations from the time that the pair spent together. Gould's estate sued Carroll for breach of copyright. The court rejected that claim on the ground that the copyright owner was actually the person taking the notes, and not the person who was being quoted. Do you think this is a fair way to allocate copyright?

Question 64

The Enerstretch is an exercise device whose trademark has been registered, although the device itself has not been patented. Sales had been going well, until the Enerstretcher came along. A cheaper copy of the Enerstretch, the Enerstretcher is made with less resilient springs. As a result, the Enerstretcher was prone to snap, injuring its user. The media ran several stories about the victims, and as a result of the bad press, the makers of the Enerstretcher pulled their products off the market. Because of the bad press, the makers of the Enerstretch quickly saw their sales drop as well. You are a risk manager for Enerstretch. Does your company have a case? If so, what kind of remedies can they avail themselves of? Support your answer.

Question 65

Amicus is an artist whose sculptures have made him a household name around the world. Recently, he has tried exploring different themes, thinking that his religious sculptures were becoming too common. In a moment of inspiration he had the idea to make a sculpture of 100 doves, symbolizing his hopes for world peace. Upon completion he sold the work to his hometown in Ontario. Years later, and facing budgetary cuts from the provincial government, the city decided to auction the work off, dove by dove. Amicus was furious when he heard the news, stating that the work is a unity and selling it off in pieces ruins its meaning. He has come to you for advice. Brief Amicus on moral rights and how he may be able to benefit from them.

Question 66

Explain the difference between natural scarcity and artificial scarcity. How can intellectual property laws affect the scarcity of a particular asset? Illustrate with an example.

Question 67

Hearty Meat Sandwiches is a large- sized chain of hamburger and sandwich shops. Although they have been operating in western Canada for 10 years, they had never managed to crack the Quebec market. A few years ago, on the advice of their lawyer, they had registered several trademarks, including their name, their logo (a cartoon heart shape between two pieces of bread), and their slogan "Smarties eat at Hearty's". When Hearty's opened their first Quebec store in Montreal last year, they ran a huge advertising campaign, including bilingual radio spots and ads on television.
When opening day arrived, they were surprised that the number of new customers they managed to attract was far less than in other, smaller towns. Only later did they discover that Montrealers appeared to be flocking to another hamburger joint in town, Hardy's Burgers, owned and operated since 1997 by Jacob Hardy. Needless to say, the owners of Hearty's are miffed. They admit that they probably should have done better research before the opening, but still think it's unfair that their ads are working to their competitor's benefit. They have come to you for advice regarding any recourse relating to their trademark. Advise them of any action they may wish to pursue, remedies they may seek, and the benefits and detriments of pursuing their case.

Question 68

Explain what is meant by the following statement: "Intellectual property law is a set of rules that aims to balance the rights of a creator against the public interest."

Question 69

Thomas recently patented a process for vacuum- packing t- shirts in cellophane. The process is such that the
t- shirts are compressed into a tight cube, then sealed. The benefits for this are numerous, since the unique shape of the packaging attracts customers, allows for creative displays, etc. In addition to the patented process, Thomas is wondering if he can maintain exclusivity over other aspects of the shirts. Can trademark law help Thomas? How? Advise Thomas on any steps he ought to consider taking in order to protect himself, should a competitor try to imitate his product.

Question 70

Explain the meaning of the following statement: "Industrial designs cannot be registered for designs that are purely functional in nature." Using a running shoe as an example, describe an element that can be registered as an industrial design and an element that cannot.