Chapter 9: Protecting Innovation

Question 0

What is the difference between a patent, a trademark and copyright?

Answer 0

Patent: a property right protecting a process, machine, or manufactured or variety of plant.
Trademark: an indicator used to distinguish the source of a good (symbol or slogan).
Copyright: a property right protecting works of authorship

Question 1

Define appropriability

Answer 1

Appropriability is the degree to which a firm is able to capture the rents from its innovation.

Question 2

What three things must a US invention have in order to be granted a patent?

Answer 2

1. Useful
2. Novel
3. Not be obvious
   Additionally, the discovery of scientific principles that pertain to natural laws (gravity) cannot be patented.

Question 3

Define trade secret

Answer 3

Information that belongs to a business that is held private (coca cola recipe)

Question 4

What are the five degrees of technology protection

Answer 4

• Wholly proprietary
• limited licensing
• moderate licensing
• liberal licensing
• wholly open

Question 5

Define original equipment manufacturers

Answer 5

OEM’s are firms that assemble goods using components made by other manufacturers, also called value-added resellers (VARs)