Deck 7: Intellectual Property Rights

Question 1

A licensor who allows a licensee to use a trademark as part of the licensee's company name must also permit the licensee to use the mark on its products.

Answer 1

False

Question 2

Only the federal government provides for the registration of trademarks.

Answer 2

False

Question 3

Certain business processes are patentable.

Answer 3

True

Question 4

A patent applicant must demonstrate that an invention is useful to receive a patent.

Question 5

A trademark owner that successfully proves infringement can recover the profits that the infringer wrongfully received from the infringement.

Question 6

Once a manufacturer's trademark is established, another manufacturer may use it without permission.

Question 7

With respect to a patented process, all steps or their equivalent must be copied for infringement to occur.

Question 8

Arbitrary and fanciful trademarks are sometimes considered to be the most distinctive trademarks.

Question 9

The need to protect intellectual property is recognized in the U.S. Constitution.

Question 10

Intellectual property is property resulting from intellectual, creative processes.

Question 11

Service marks are not protected in the same way as trademarks.

Question 12

An unusual or fanciful trade name is not protected under trademark law.

Question 13

A descriptive term is protected under trademark law if it acquires a secondary meaning.

Question 14

The products involved in a trademark dilution suit must be similar.

Question 15

To succeed in a suit for trademark infringement, the owner must show that the infringer acted intentionally.

Question 16

A trade name is used to indicate all or part of a business's name.

Question 17

After a patent is issued, there is a nine-month limit before it can be challenged.

Question 18

Trademark dilution cannot occur online.

Question 19

The law does not prohibit the creation or shipment of counterfeit labels unless they are attached to products.

Question 20

The United States can prosecute foreign counterfeiters under U.S. law.

Question 21

A license that limits the uses of a patent by the licensee is unlawful.

Question 22

Under the Madrid Protocol, the fees and procedures for trademark registration vary significantly among individual countries.

Question 23

Sea Coast Café uses the trademark of Tacos del Mar without permission. This use of the mark is actionable as trademark infringement

A) if consumers are confused.
B) all of the choices.
C) only if the two companies' products are similar.
D) if the use diminishes the distinctive quality of the mark.

Question 24

Information that cannot be patented, copyrighted, or trademarked cannot be protected as a trade secret.

Question 25

To obtain copyright protection under federal law, a work must be original.

Question 26

Pricing information is not a trade secret.

Question 27

Some business processes can be protected as trade secrets.

Question 28

Each member country to the TRIPS agreement must include in its domestic laws broad intellectual property rights and effective remedies for violations.

Question 29

A copyright owner who sells a copy of a work retains the right to control the further distribution of that copy.

Question 30

The European Union's copyright rules limit the royalty protection for musicians to ten years.

Question 31

The registration of a copyright is not evidence that the copyright is valid.

Question 32

Certain business processes are copyrightable.

Question 33

Works that are copyrightable include product packaging.

Question 34

Without permission, Race Runners Inc. uses a trademark that is similar to the registered mark of Swiftfoot, Inc. This use of the mark constitutes trademark dilution

A) if consumers are confused.
B) all of the choices.
C) only if the two companies' products are similar.
D) if the use diminishes the distinctive quality of the mark.

Question 35

Greg is marketing manager for Home Stuff LLC. Greg is responsible for branding the company's products. Aspects of branding that can be trademarked include

A) a catchy phrase, such as "Stuff your home with Home Stuff!"
B) the shape of a container, even if it does not aid in product identification.
C) use of another party's established trademark, with or without permission.
D) none of the choices.

Question 36

If a creative work is not copyrightable, other intellectual property law will not protect it.

Question 37

Brewed Beans Inc. makes and sells "CoCoCafe," a chocolate-flavored coffee. Darkroast Inc. later markets a similar drink under the name "KoKoKafe." This is most likely

A) copyright infringement.
B) patent infringement.
C) trademark infringement.
D) none of the choices.

Question 38

Phoenix Inc. is a publisher. Phoenix uses a logo featuring a bird rising from a flame to identify its publications. The publications are printed in a unique process that includes a 3-D printer. Phoenix could most likely obtain trademark protection for its

A) logo.
B) publications.
C) printing process.
D) printer.

Question 39

An unauthorized reproduction must be exactly the same as the original, and reproduce the original in its entirety, for infringement of copyright to occur.

Question 40

Tapping into a competitor's computer to obtain confidential business data is not a theft of trade secrets.

Question 41

Graphix S.A. traffics in labels that bear counterfeit trademarks. This is a crime

A) only if the labels have negative effects on legitimate businesses.
B) only if the labels are attached to counterfeit goods.
C) under all circumstances.
D) under no circumstances.

Question 42

O-Ring Corporation allows Piston Company to incorporate O-Ring's patented fuel-injection system into Piston's product. This is

A) a license.
B) copyright infringement.
C) trademark infringement.
D) patent infringement.

Question 43

Ruby invents a new type of pillow and obtains a patent for it. Sleep-Time Inc. believes that Ruby's pillow infringes on one of Sleep-Time's previously patented products. Sleep-Time must file a challenge to Ruby's patent within

A) nine months.
B) twenty years.
C) the life of the inventor plus seventy years.
D) no specific time.

Question 44

Obtaining a court order to close down the domain name of a website is an effective tool that U.S. officials use to combat online sales of

A) licenses.
B) counterfeit goods.
C) competing products.
D) trademarks.

Question 45

To be protected under the Copyright Act, a work must be

A) an inseparable idea and expression.
B) original and fixed in a durable medium.
C) a concept, principle, or discovery.
D) none of the choices.

Question 46

Pseudo Drugs Inc. is convicted of trafficking in counterfeit prescription drugs. As a penalty, the company may be ordered to pay restitution to the trademark holders in an amount equal to

A) their lost net profits.
B) the retail prices of the genuine drugs.
C) Pseudo's profits from the sale of the counterfeit drugs.
D) the retail prices of the counterfeit drugs.

Question 47

GoodGro Inc. makes genetically modified seeds that are identical to Harvest Corporation's patented seeds, without Harvest's permission. This is most likely

A) copyright infringement.
B) patent infringement.
C) trademark infringement.
D) none of the choices.

Question 48

Salty Snacks Inc. markets a fish-shaped cracker. When Tasty Tidbits Inc. begins to sell a similar product, Salty files a suit against Tasty, alleging infringement and claiming that consumers are likely to be confused. The court will most likely

A) rule in the plaintiff's favor.
B) dismiss the suit.
C) order both parties to redesign their respective products.
D) order both parties to destroy all remaining fish-shaped crackers.

Question 49

Wendy works as a weather announcer for a TV station under the character name Weather Wendy. Wendy can register her name as

A) none of the choices.
B) a trade secret.
C) a service mark.
D) a trade name.

Question 50

Works that are copyrightable include

A) books.
B) music videos.
C) product packaging.
D) all of the choices.

Question 51

Chris operates the Devil's Brew chain of coffee stands. "Devil's Brew" is

A) none of the choices.
B) a trade secret.
C) a service mark.
D) a trade name.

Question 52

Galaxy Research Inc. uses a mark associated with its name to distinguish its services from those of other tech firms. This mark is

A) none of the choices.
B) a trade secret.
C) a service mark.
D) a trade name.

Question 53

Berry Good LLC registers its trademark with the U.S. Patent and Trademark Office, and uses it to market a distinctive line of ice cream products. Crabapple Inc. uses the mark without Berry's consent to sell imitation frozen desserts. Berry has a cause of action against

A) Crabapple.
B) the U.S. Patent and Trademark Office.
C) consumers who buy Crabapple's desserts.
D) all of the choices.

Question 54

Organos Ltd. traffics in nutritional supplements that are marketed as genuine, trademark-branded products when in fact they are counterfeit. This is a crime

A) only if the counterfeits have negative effects on legitimate businesses.
B) only if the counterfeits present serious public health risks.
C) under all circumstances.
D) under no circumstances.

Question 55

Don One decides to use his personal name for a line of clothing he is developing. In this circumstance, Don One will receive trademark protection under the law when

A) Don begins to market his line of clothing.
B) customers begin to associate the name with the source of the product.
C) Don begins to make his line of clothing.
D) all of the choices.

Question 56

Without the permission of the copyright owner, Faye copies the literary expression of Game of Thrones, changes the names of the main characters, and publishes the result as her own work. This is

A) copyright infringement.
B) a "fair use."
C) a legitimate creative act.
D) none of the choices.

Question 57

Apex Electrical Inc. agrees to allow Apex Foundations LLC to use the owner's trademark "Apex" as part of its company name but not otherwise. The domain name apex.com can be used online by

A) Apex Electrical only.
B) both businesses but no others.
C) neither business.
D) both businesses and any others that own the mark.

Question 58

Stig creates unique graphic works that feature characters of his own imagination. Copyright protection for Stig's work is

A) not possible.
B) automatic.
C) available only on registration with the U.S. Copyright Office.
D) enforceable only if Stig places a circled "c" on the work.

Question 59

Gargantua Equipment Corporation registers its trademark as provided by federal law. This registration gives notice that the mark belongs exclusively to Gargantua. This notice is

A) national.
B) limited to Gargantua's home state.
C) limited to Gargantua's market.
D) limited to those who have actual notice of it.

Question 60

Serena invents a new, unique, long-life battery. A grant from the government that gives Serena the exclusive right to make and sell the battery for a certain period of time is

A) a patent.
B) a trademark.
C) a copyright.
D) a trade secret.

Question 61

Prognosis Inc. owns a brain-computer interface that enables physicians to diagnose and treat some diseases quickly and accurately. Federal copyright protection extends to

A) the general appearance of the app.
B) the parts of the app that can be read by computers.
C) the command structure of the app.
D) all of the choices.

Question 62

Information that may be protected as trade secrets includes

A) customer lists.
B) pricing information.
C) marketing techniques.
D) all of the choices.

Question 63

Like most successful companies, Phones Inc. has trade secrets. The law protects those secrets if the information is

A) not revealed to outside parties.
B) cataloged by the company as "confidential."
C) useful and is in fact used by the company.
D) of value to a competitor.

Question 64

The idea for "Price & Profit," an app that businesses can use to track their revenue, profit, and payroll, is protected by

A) copyright law.
B) patent law.
C) none of the choices.
D) trade secrets law.

Question 65

Predictive Data LLC makes and sells software that enables a business to target its advertising precisely. The company could successfully bring an action for copyright infringement against a competitor who copies

A) the screen displays of the software.
B) the parts of the software that can be read by humans.
C) the menus of the software.
D) any of the choices.

Question 66

Paving Corporation taps into the computer network of Roadwork Inc., a competitor, and downloads confidential business data without Roadwork's knowledge or authorization. This is most likely

A) copyright infringement.
B) patent infringement.
C) trademark infringement.
D) a theft of trade secrets.

Question 67

Bette choreographs a dance to accompany City Orchestra's performance of a medley of movie scores. Dian, a dance instructor, distributes copies of a short portion of the choreography to her students. This is most likely

A) copyright infringement.
B) a "fair use."
C) legal only on a payment of royalties to Bette.
D) legal only on a payment of royalties to City Orchestra.

Question 68

College Copy Shop (CCS) compiles, copies, and sells reading materials to students on the instructions of their professors, who indicate which parts of certain publications to include. These include texts published by Deep Topics, Inc. CCS does not obtain the permission of Deep Topics, or any of the other original publishers of the copied materials, and does not pay royalties on the sales of the compilations. Deep Topics and others file a suit against CCS, alleging infringement of the plaintiffs' intellectual property rights. Which type of intellectual property is involved in this situation? What is CCS's likely defense? How is a court most likely to rule? Explain.

Question 69

France and the United States are signatories of the Berne Convention. Alain, a citizen of France, publishes a book first in France and then in the United States. Alain's copyright must be recognized by

A) France only.
B) France and the United States only.
C) all of the signatories of the Berne Convention.
D) none of the choices.

Question 70

Leigh buys Masters of Business, a copyrighted book. Under the first sale doctrine, Leigh can legally

A) sell the book to another person.
B) republish the book as his own work.
C) control the distribution of other copies of the book.
D) none of the choices.

Question 71

Alpha Inc. announces a new computer operating system to be marketed under the name McSoftware. McDonald's Corp. asserts that the use of this name infringes on the McDonald's family of trademarks characterized by the prefix "Mc" attached to a generic term. Alpha responds that "Mc" has come into generic use as a prefix and therefore McDonald's has no trademark rights to the prefix. Alpha files an action, seeking a judgment that the mark McSoftware does not infringe on McDonald's trademarks. What factors will the court consider in deciding this issue? What will be the probable outcome of the case? Explain.

Question 72

United Inc., a U.S. film production company, files a suit against Video Ltd., a Mexican production firm, for infringement of intellectual property rights under Mexico's national laws. Both the U.S. and Mexico are signatories of the TRIPS agreement, under which United is entitled to

A) more protection under Mexican law than Video.
B) the same rights and protection under Mexican law as Video.
C) fewer rights under Mexican law than Video.
D) none of the choices.