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Business Law > CH 10 Test 1 > Flashcards

CH 10 Test 1 Flashcards

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1
Q

acquired distinctiveness

A

through advertising, use and association, over time, an ordinary descriptive word or phase has taken on a new source-identifying meaning and functions as a mark in the eyes of the public.

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2
Q

copyright

A

exclusive right given by federal statute to the creator of a literary or an artistic work to use, reproduce, and display the work.

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3
Q

cybersquatters

A

term for those who register and set up domain names on the Internet for resale to the famous users of the names in question.

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4
Q

distinctiveness

A

capable of serving the source-identifying function of a mark.

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5
Q

mask work

A

specific form of expression embodied in a chip design, including the stencils used in manufacturing semiconductor chip products.

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6
Q

prior art

A

a showing that an invention as a whole would have been obvious to a person of ordinary skill in the art when the invention was patented.

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7
Q

secondary meaning

A

is a legal term signifying the words in question have taken on a new meaning with the public, capable of serving a sourceidentifying function of a mark.

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8
Q

semiconductor chip

A

product product placed on a piece of semiconductor material in accordance with a predetermined pattern that is intended to perform electronic circuitry functions.

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9
Q

service mark

A

mark that identifies a service.

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10
Q

trade dress

A

product’s total image including its overall packaging look.

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11
Q

trade secret

A

any formula, device, or compilation of information that is used in one’s business and is of such a nature that it provides an advantage over competitors who do not have the information.

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12
Q

trademark mark

A

that identifies a product.

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13
Q

TRUE/FALSE

A trademark is any word, name, symbol, device, or combination of these used to identify a product.

A

TRUE

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14
Q

TRUE/FALSE

Trademarks may be used to protect the exclusive right to identify either products or services.

A

FALSE

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15
Q

TRUE/FALSE

Once a mark is registered in accordance with federal law, the holder of the mark has the exclusive right to use the mark in perpetuity.

A

FALSE

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16
Q

TRUE/FALSE

Trademarks and service marks are recorded with the Register of Copyrights.

A

FALSE

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17
Q

TRUE/FALSE

Descriptive terms such as locations and colors are never subject to trademark protections.

A

FALSE

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18
Q

TRUE/FALSE

Generic terms that refer to a type or class of goods are never subject to trademark protection.

A

TRUE

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19
Q

TRUE/FALSE

Trade dress refers to the packaging look and overall image of a product.

A

TRUE

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20
Q

TRUE/FALSE

Protection for trade dress is available under the Lanham Act.
A

TRUE

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21
Q

TRUE/FALSE

To prevail in an action for trade dress infringement, a plaintiff must prove that its trade dress is distinctive and nonfunctional and the defendant’s trade dress is confusingly similar to the plaintiff’s.

A

TRUE

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22
Q

TRUE/FALSE

Cybersquatters are individuals who register and set up domain names on the Internet that are identical or confusingly similar to existing trademarks in the hopes they can sell the name to the trademark owner.

A

TRUE

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23
Q

TRUE/FALSE

A copyright prevents the copying of an idea.

A

FALSE

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24
Q

TRUE/FALSE

A copyright is the exclusive right given by federal statutes to the creator of a literary or an artistic work to use, reproduce, and display the work.

A

TRUE

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25
Q

TRUE/FALSE

The typical U.S. copyright now runs for 28 years, with a right of renewal for an additional 28 years.

A

FALSE

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26
Q

TRUE/FALSE

Copyright of a “work made for hire” runs for the life of the creator of the work plus 50 years.

A

FALSE

27
Q

TRUE/FALSE

Under the Berne Convention Implementation Act of 1988, it is no longer mandatory that works published after March 1, 1989 contain a notice of copyright.

A

TRUE

28
Q

TRUE/FALSE

In order for a work to be copyrightable, it must possess a significant amount of creativity.

A

FALSE

29
Q

TRUE/FALSE

An owner of a copyright may license some of his or her rights to another in exchange for royalty payments.

A

TRUE

30
Q

TRUE/FALSE

A copyright owner may prohibit even limited use of copyrighted material if it is used for parody or criticism

A

FALSE

31
Q

TRUE/FALSE

All types of patents available under U.S. law are entitled to the same quality and duration of protection once initial filing is perfected with the Patent and Trademark Office in Washington, D.C.

A

FALSE

32
Q

TRUE/FALSE

Although processes and machines are eligible for patent protection, manufactures and compositions of matter are not.

A

FALSE

33
Q

TRUE/FALSE

Under the United States Supreme Court’s “doctrine of equivalents,” infringers may not avoid liability for patent infringement by substituting insubstantial differences for some of the elements of the patented product or process.

A

TRUE

34
Q

TRUE/FALSE

To be patentable, an invention must be new and not obvious to a person of ordinary knowledge and skill in the art or technology to which the invention is related.

A

TRUE

35
Q

TRUE/FALSE

A showing that an invention as a whole would have been obvious to a person of ordinary skill in the art when the invention was patented is called subsequent art.

A

FALSE

36
Q

TRUE/FALSE

In limited circumstances customer lists are protected under trade secret laws.

A

TRUE

37
Q

TRUE/FALSE

When secret information is shared or communicated for a special purpose and the person receiving the information knows it is not to be made known, it loses the protection it had while secret.

A

FALSE

38
Q

TRUE/FALSE

Stealing trade secrets can result in fines, but not imprisonment

A

FALSE

39
Q

TRUE/FALSE

Written computer programs are not given the same protection as other copyrighted material.

A

FALSE

40
Q

TRUE/FALSE

Computer software licensing agreements include restrictions on the use of software and give the licensor greater protection than that provided by copyright law.

A

TRUE

41
Q

TRUE/FALSE

The Semiconductor Chip Protection Act of 1984 created a new form of industrial intellectual property by protecting mask works and the semiconductor chip products in which they are embodied against chip piracy.

A

TRUE

42
Q

TRUE/FALSE

Under the Semiconductor Chip Protection Act reverse engineering exemption, competitors may study mask works but may not use the results of that study to design their own semiconductor chip.

A

FALSE

43
Q

The Lanham Act grants protection for:

a. marks.
b. patents.
c. copyrights.
d. trade secrets.

A

a. marks.

44
Q

Trademarks or service marks may be registered if they utilize terms that are:

a. suggestive of characteristics of the product or service to which they relate.
b. fanciful, arbitrary, or coined.
c. descriptive and have acquired a known secondary meaning linked to a product.
d. all of the above.

A

d. all of the above.

45
Q

It is important to protect trade dress against adoption by a competitor because such adoption can:

a. deceive purchasers into believing they have obtained a comparable product.
b. dilute the originator’s resource investment in its product appearance.
c. usurp the business goodwill of the developer of the trade dress.
d. all of the above.

A

d. all of the above.

46
Q

In order to obtain a court order enjoining a competitor from using your trademark, it is necessary to show that:

a. you invested a certain level of resources to develop the mark.
b. the competitor is making unfair profits from use of the mark.
c. the competitor’s use of the mark risks confusing the public.
d. all of the above.

A

c. the competitor’s use of the mark risks confusing the public.

47
Q

A copyright bestows upon the creator of an artistic or literary work a federal statutory right to exclusively:

a. use the work.
b. reproduce the work.
c. display the work.
d. all of the above.

A

d. all of the above.

48
Q

Which of the following is not the exclusive right of the holder of a copyright?

a. To prepare works that are derived from the original work.
b. To obtain a court order enjoining use of the original work by another.
c. To distribute copies of recordings of the original work.
d. To display or perform the original work in public.

A

b. To obtain a court order enjoining use of the original work by another.

49
Q

In determining whether limited use of copyrighted material may be permitted as “fair use,” courts will consider:

a. the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes.
b. the nature of the copyrighted work.
c. the amount and substantiality of the portion used in relation to the copyrighted work as a whole.
d. all of the above.

A

d. all of the above

50
Q

The Digital Millennium Copyright Act :

a. made notice of copyrights no longer mandatory.
b. changed the life of a copyright.
c. was enacted to curb the pirating of software and other pirated works.
d. all of the above.

A

.c. was enacted to curb the pirating of software and other pirated works.

51
Q

Three types of patents available under U.S. law are:

a. utility, product, design.
b. design, packaging, invention.
c. design, plant, utility.
d. utility, regulatory, common law.

A

c. design, plant, utility.

52
Q

Design patents have a duration of ____ years.

a. 10
b. 14
c. 17
d. 20

A

b. 14

53
Q

The type of patent that may be granted to developers of plant reproduction methods is called a:

a. process patent.
b. functional or utility patent.
c. improvement patent.
d. plant patent.

A

d. plant patent.

54
Q

The type of patent that may be granted to developers of new and non-obvious ornamental features of manufactured articles is called a(n):

a. design patent.
b. functional or utility patent.
c. improvement patent.
d. plant patent.

A

a. design patent.

55
Q

The America Invents Act:

a. amended federal patent law.
b. replaced the “first to file system” with a “first to invent” system.
c. speeds up the application process for energy conservation inventions for a $4,800 fee.
d. all of the above.

A

a. amended federal patent law.

56
Q

A business formula, information compilation, or device that provides an advantage over competitors that do not have it is known as a:

a. competitive advantage.
b. strategic advantage.
c. trade secret.
d. restraint of trade.

A

c. trade secret.

57
Q

In order to protect themselves from disclosure of proprietary or confidential information, businesses may:

a. implement security measures to prevent access by outsiders.
b. enforce contractual nondisclosure agreements against departing employees.
c. limit disclosure of such information to those with a need to know.
d. all of the above.

A

d. all of the above.

58
Q

Under the Computer Software Copyright Act of 1980, a written program:

a. must be written in object code in order to be protected.
b. must be written in source code in order to be protected.
c. is protected as any other copyrighted material, even if it is in written form.
d. is protected but does not receive the same protections as other copyrighted materials.

A

c. is protected as any other copyrighted material, even if it is in written form.

59
Q

To analyze a copyright infringement claim in the context of computer programs, courts will primarily examine:

a. the total number of program steps that are substantially similar.
b. the number of significant program steps that are substantially similar.
c. whether the programs appear substantially similar in ordinary language.
d. whether the programs appear substantially similar in machine language.

A

b. the number of significant program steps that are substantially similar.

60
Q

Computer programs are subject to protection in the U.S. under:

a. copyright laws.
b. patent laws.
c. trade secret laws.
d. all of the above.

A

d. all of the above.

61
Q

Owners of mask works are entitled to the exclusive right to reproduce and distribute their products under U.S. law for a period of:

a. 10 years.
b. 20 years.
c. 28 years.
d. the life of the creator plus 70 years.

A

a. 10 years.

62
Q

The Semiconductor Chip Protection Act provides that an infringer will:

a. be liable for actual damages
b. forfeit its profits to the owners
c. both a. and b.
d. neither a. nor b.

A

c. both a. and b.

63
Q

CASE

Herman Corporation is engaged in preparing a marketing campaign consisting of electronic and print images. Drawings and photographs for the campaign are coming from a variety of sources, including popular magazines, international newspapers, and web sources. The marketing vice president asserts that the company may use the images under the fair use doctrine. What factors should be considered in the application of the fair use doctrine?

A

Copyright law requires a consideration of four factors in determining the application of the fair use doctrine. First, the purpose and character of the use must be considered. Here, the commercial, in contrast to nonprofit, use of the images does not favor Herman Corporation’s position. Second, the nature of the work is a factor. All of the images were publicly available, so this factor favors Herman Corporation. Third, the extent of the copying must be considered. Again, Herman Corporation is favored because only selected aspects of the source materials were used. Finally, the value of the copyrighted work is an issue. Application of this factor may work against Herman Corporation’s position, since the images are a critical part of the product generated by the media outlets.

64
Q

CASE

Smarts and Then Some, Inc. developed a software program after several years of research and development. The particular software program was then test–marketed, at which point a competitor filed suit claiming that the Smarts and Then Some program violated the competitor’s copyright on a program they too were test-marketing. What is the test to determine whether a copyright has been violated?

A

With the passage of the Computer Software Copyright Act of 1980, greater clarity was brought to answering the question of whether a software copyright is violated. In rendering a decision regarding software copyright violation, courts today attempt to determine the degree of similarity between the two programs in terms of structure, flow, sequence, and organization.

Business Law (9 decks)

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