Chapter 11

Question 1

1) 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 outweighed by the short-term costs

Answer 1

C) The basic economic system of intellectual property is grounded in the idea of incentives.

Question 2

2) What is the definition of a trade secret?

A) A statutorily protected right in creative expression.
B) A statutorily created property right in a mark, word, picture, or design that attaches to goods and indicates their source.
C) A statutorily created property right in inventions and discoveries.
D) Any formula, pattern, machine, or process of manufacturing used in one’s business that may give the user to obtain an advantage over its competitors.
E) A legal doctrine giving someone protected rights in the distinctive overall appearance or look and feel of a product or service.

Answer 2

D) Any formula, pattern, machine, or process of manufacturing used in one’s business that may give the user to obtain an advantage over its competitors.

Question 3

3) 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) come in contact with another’s intellectual property
E) engage in buying and selling of trade secrets

Answer 3

A) misappropriate the information

Question 4

4) If a business wishes to protect its trade secrets, a first step is to __________.

A) maintain secrecy
B) put restrictions on what third parties can visit the business and what areas they will have access to
C) require third parties to sign non-disclosure agreements
D) conduct a trade secret audit to identify confidential knowledge-based resources
E) establish the existence of a trade secret

Answer 4

D) conduct a trade secret audit to identify confidential knowledge-based resources

Question 5

5) 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 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

Answer 5

D) a person improperly acquires secret information through burglary, espionage, or computer hacking

Question 6

6) If a judge issues an order for a party to take a particular action or to cease from an action, the judge has ordered __________.

A) compensation
B) money damages
C) a sanction
D) an injunction
E) a fine

Answer 6

D) an injunction

Question 7

7) Which of the following has been adopted by most states and provides a foundation for trade secret law?

A) Economic Espionage Act
B) Defend Trade Secrets Act
C) Uniform Trade Secrets Act
D) Anti-Piracy Act
E) Lanham Act

Answer 7

C) Uniform Trade Secrets Act

Question 8

8) Which of the following statements is true of trade secrets?

A) A first step involved in the protection of trade secrets deals with preservation of secrecy through computer systems.
B) Establishing the existence of a trade secret is a critical step in the control of valuable knowledge resources.
C) Trade secrets must be unique.
D) Companies lose property in knowledge-based resources when suppliers, customers, repair technicians, or visitors come into contact with their trade secrets.
E) Reasonable measures in the preservation of trade secrets do not include physically locking away written material.

Answer 8

B) Establishing the existence of a trade secret is a critical step in the control of valuable knowledge resources.

Question 9

9) Which of the following statements is true of misappropriation?

A) Innocently acquiring a secret from another without having knowledge of its theft is still an act of misappropriation.
B) If, through one’s 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 to the demonstration of misappropriation.
E) Recreation of the same information that another considers a trade secret is treated as misappropriation.

Answer 9

C) If one acquires a secret from another who has a duty to maintain secrecy, and one knows of that duty, misappropriation has occurred.

Question 10

10) Which of the following statements is true of the Defend Trade Secrets Act (DTSA)?

A) The DTSA replaced the Economic Espionage Act.
B) The DTSA does not provide access to the federal courts even if diversity of citizenship does not exist.
C) The DTSA does not adopt the Economic Espionage Act’s definition of trade secrets.
D) The DTSA does not provide a civil seizure mechanism that allows a trade secret owner to secure property.
E) The DTSA carves out whistle-blower immunity for those who disclose secrets when reporting suspected violations of law.

Answer 10

E) The DTSA carves out whistle-blower immunity for those who disclose secrets when reporting suspected violations of law.

Question 11

11) Which of the following accurately describes patents?

A) The Venetian Patent Act of 1474 is a source for many principles of modern patent law.
B) Patents are created for an indefinite period of time.
C) An original and ornamental design for an article of manufacture will be governed by a utility patent.
D) Nonobvious and useful processes and machines will be governed by design patents.
E) Plant patents last for 14 years from issue under the Economic Espionage Act.

Answer 11

A) The Venetian Patent Act of 1474 is a source for many principles of modern patent law.

Question 12

12) Which of the following statements is true of design patents?

A) The duration of a design patent is 15 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.

Answer 12

A) The duration of a design patent is 15 years from the date of issue.

Question 13

13) In the context of utility patents, the term “claims” refers to __________.

A) a property right in a plant that can be reproduced asexually
B) a mark representing membership in a certain organization
C) the details about the subject matter that an inventor regards as the invention
D) a mark associated with a service
E) a function of trademarks

Answer 13

C) the details about the subject matter that an inventor regards as the invention

Question 14

14) In the context of patentable subject matter, which of the following refers to a method for doing things?

A) Claim
B) Process
C) Infringement
D) Recognizability
E) Tarnishment

Answer 14

B) Process

Question 15

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

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

Answer 15

E) utility

Question 16

16) What individual is assigned by The Patent and Trademark Office (PTO) to consider a patent application?

A) Claims examiner
B) Patent reviewer
C) Claims officer
D) Intellectual property attorney
E) Patent examiner

Answer 16

E) Patent examiner

Question 17

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

A) Nonobviousness
B) Utility
C) Novelty
D) Tarnishment
E) Preemption

Answer 17

C) Novelty

Question 18

18) Harry files an application and receives a patent from the U.S. Patent Office for an abstract idea. He tells his friend Sally about his idea. A few months later, Sally attempts to sell Harry’s idea as her own. Harry files a lawsuit against Sally for patent infringement. Which of the following is true of the outcome of Harry’s case?

A) Harry will lose because Sally can accurately assert that he does not have a valid patent.
B) Harry will win because Sally has infringed upon his patent.
C) The court is not the correct venue for Harry’s case, and it will refer the case to the U.S. Patent Office.
D) Harry will be able to claim that he has a valid patent, but Sally will win because she has not infringed upon Harry’s patent.
E) Neither Harry nor Sally have valid claims, and the court will dismiss the case.

Answer 18

A) Harry will lose because Sally can accurately assert that he does not have a valid patent.

Question 19

19) 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

Answer 19

A) Patent

Question 20

20) 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) Multiple intellectual property rights can cover the same article.
E) Patent laws include the right to use the invention.

Answer 20

D) Multiple intellectual property rights can cover the same article.

Question 21

21) __________ 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

Answer 21

B) Nonobviousness

Question 22

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

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

Answer 22

D) The invention is obvious.

Question 23

23) The one-year grace period applies to __________ law.

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

Answer 23

B) patent

Question 24

24) Which of the following is true when a patent expires?

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

Answer 24

B) It is in the public domain and others may use it without permission from the patentee.

Question 25

25) In the context of trademarks, another term for recognizability is __________.

A) preemption
B) uniqueness
C) distinctiveness
D) obviousness
E) function

Answer 25

C) distinctiveness

Question 26

26) Hillward Bakers Incorporated (Hillward) has been using a logo with the letters “HB” in a blue color with a baker’s hat above these letters since its inception ten years ago. Customers connect this logo with Hillward Bakery. Hobert Bakers Incorporated (Hobert), a newly-opened bakery and confectionery 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 against the suit by claiming that Hillward created something that lacks utility and cannot be trademarked.
D) Hobert can defend against the suit by claiming that Hillward created something that was very obvious.
E) Hillward cannot sue Hobert because logos cannot be patented or trademarked.

Answer 26

B) Hillward can sue Hobert since the logo has been used by Hillward and is associated with it.

Question 27

27) Which of the following is not true of a trademark?

A) A trademark is a form of intellectual property.
B) Rights in a trademark come from use of the mark in association with goods and services.
C) If a trademark is unregistered, it should not be assumed that it is open for public use.
D) A trademark is associated with a mark, word, design, or picture.
E) Owners of a mark cannot sue for infringement if they have not registered the trademark.

Answer 27

E) Owners of a mark cannot sue for infringement if they have not registered the trademark.

Question 28

28) Which of the following is a function of a trademark?

A) Obviousness
B) Utility
C) Distinctiveness
D) Certification
E) Guarantee

Answer 28

C) Distinctiveness

Question 29

29) In the context of intellectual property, the Facebook “f” and Burger King’s crown would be called __________.

A) trade secrets
B) trademarks
C) plant patents
D) copyrights
E) design patents

Answer 29

B) trademarks

Question 30

30) Which of the following is true of a “brand?”

A) A brand would never qualify as a trademark.
B) All trademarks are brands.
C) Businesses use brands to identify a family of products or services.
D) Brand is a narrower term than trademark.
E) A brand is not part of a business’s marketing strategy.

Answer 30

C) Businesses use brands to identify a family of products or services

Question 31

31) Which of the following is an instance of trademark infringement?

A) An intentional use of the owner’s mark.
B) An accidental design of one’s own mark that is too similar to another’s.
C) An invention that produces surprising and unexpected results.
D) Disclosing information that one had a duty to keep secret.
E) Improperly acquiring secret information through burglary, espionage or computer hacking.

Answer 31

B) An accidental design of one’s own mark that is too similar to another’s.

Question 32

32) Radford School is certified by the United Federation of Planets Academy of Business and Management 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

Answer 32

E) collective mark

Question 33

33) Which of the following are 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

Answer 33

A) Certification marks

Question 34

34) 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 mark

Answer 34

A) Service marks

Question 35

35) Which of the following is true of trade dress?

A) It refers to the utility and nonobviousness of an invention.
B) It cannot be protected without 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

Answer 35

D) It is protected by the law from being copied as long as it is distinctive.

Question 36

36) __________ refers to a color or shape associated with a product or service.

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

Answer 36

B) Trade dress

Question 37

37) When you purchase an item from Globus Corporation, they place the item in a paper bag with handles and vertical yellow, blue, and white stripes. Even without seeing the words “Globus Corporation” 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

Answer 37

A) trade dress

Question 38

38) 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

Answer 38

A) Official Gazette

Question 39

39) __________ 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

Answer 39

B) Secondary meaning

Question 40

40) 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 owner must renew the trademark registration every ten years
E) it must be listed on the principal register for one year and on the secondary register for five years

Answer 40

B) it must be listed on the Supplemental Register for five years and have acquired a secondary meaning

Question 41

41) 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.

Answer 41

C) The use is a “fair use.”

Question 42

42) Civil violation of a trademark or a patent is termed __________.

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

Answer 42

B) infringement

Question 43

43) 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

Answer 43

C) generic

Question 44

44) 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

Answer 44

D) Collective mark

Question 45

45) The fair use of a registered trademark is allowed by the __________.

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

Answer 45

A) Lanham Act

Question 46

46) 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

Answer 46

E) The Federal Trademark Dilution Act

Question 47

47) Which of the following statements accurately depicts copyright law?

A) A copyright protects an invention that is original.
B) It protects actual ideas and facts, not creative expression.
C) It protects the functional and utilitarian aspects of a product.
D) It protects inventors rather than authors.
E) It protects original, creative expression.

Answer 47

E) It protects original, creative expression.

Question 48

48) If a party pays a fee to use copyrighted work with permission, that party has paid a(n) __________.

A) royalty
B) user fee
C) copyright fee
D) commission
E) allowance

Answer 48

A) royalty

Question 49

49) In determining whether a particular use is a fair one, a court will not generally consider ________.

A) the purpose and character of the use
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 nature of the copyrighted work
E) the effect of the use upon the potential market for the copyrighted work

Answer 49

B) the amount of profit expected by the user claiming the fair use

Question 50

50) Copyright laws protect __________.

A) inventors
B) authors
C) the public
D) natural resources
E) the courts

Answer 50

B) authors

Question 51

51) Which of the following is not a true statement about the Varsity Brands copyright dispute?

A) Varsity’s cheerleading uniforms had unique designs.
B) The court determined that the Varsity design and function of the uniforms could not be separated, and, thus, the uniforms were not protected by copyright law.
C) The court found in favor of the copyright infringer, Star Athletica.
D) The court created a test for the copyrightable aspects of useful items.
E) The court attempted to draw the line between utilitarian and expressive.

Answer 51

B) The court determined that the Varsity design and function of the uniforms could not be separated, and, thus, the uniforms were not protected by copyright law.

Question 52

52) Which of the following is true of the Digital Millennium Copyright Act?
A) It protects a mark used by someone other than the owner to certify the quality, point of origin, or other characteristics of goods or services.
B) It provides a remedy of statutory damages and transfer of a famous trademark domain name to its owner if it was registered in “bad faith.”
C) It prevents circumvention of technological access protections for such digital products such as computer software and videos.
D) It prohibits household consumers from using a mark the same as or similar to another’s “famous” trademark so as to dilute its significance, reputation, and goodwill.
E) It specifies that a fair use of copyrighted materials is not an infringement of the owner’s property.

Answer 52

C) It prevents circumvention of technological access protections for such digital products such as computer software and videos.

Question 53

53) Violations of the Digital Millennium Copyright Act can result in all of the following except __________.
A) injunction
B) actual damages
C) 20 years of imprisonment
D) triple damages
E) 10 years of imprisonment

Answer 53

C) 20 years of imprisonment

Question 54

54) Which of the following is used by trademark owners to pursue rights in several countries at the same time?

A) Patent Cooperation Treaty
B) Trademark Cooperation Treaty
C) World Trade Organization
D) Madrid System for International Registration for Marks
E) United Nations

Answer 54

D) Madrid System for International Registration for Marks