Deck 6: Protecting the Idea and Other Legal Issues for the Entrepreneur

Question 1

The most commonly issued type of patent is the plant patent. 

Answer 1

False

Question 2

The claims section of a patent application is probably the most difficult section of the application to prepare since this area sets the criteria by which any infringements will be determined. 

Answer 2

True

Question 3

A trademark is a distinguishing word,name,or symbol used to identify a product. 

Answer 3

True

Question 4

Copying a product and improving it may not be patent infringement. 

Question 5

A provisional patent application can be used to establish the date of conception of the invention. 

Question 6

Intellectual property is any patents,trademarks,copyrights,or trade secrets held by an entrepreneur. 

Question 7

The three main categories of patents are design,utility and provisional patents. 

Question 8

To prevent others from copying his or her ideas,the entrepreneur should not send drawings with the patent application. 

Question 9

To minimize patent risk,an entrepreneur should seek a patent attorney who has experience in their product line. 

Question 10

A patent is a contract between the government and an inventor. 

Question 11

When resources are limited,the entrepreneur can offer a lawyer stock in exchange for legal services. 

Question 12

A design patent has a term of 14 years,beginning on the date of filing with the Patent and Trademark Office (PTO). 

Question 13

A utility patent grants the owner protection from anyone else making,using,and/or selling the identified invention and generally reflects protection of new,useful,and unobvious processes. 

Question 14

Any invention requiring FDA approval has the term of its patent extended by the amount of time it takes the FDA to review the invention. 

Question 15

An example of a business method patent is Amazon.com's one-click feature used by a buyer to order products. 

Question 16

A lawyer may work on a retainer basis by which he or she provides office and consulting time,which includes court time and other legal fees related to the action. 

Question 17

Entrepreneurs,because of their lack of understanding of intellectual property,ignore important steps that they should have taken to protect these assets. 

Question 18

The Patent and Trademark Office has established the Office of International Patent Cooperation in order to decrease the uncertainty of intellectual property rights in global markets. 

Question 19

The three major parts of a patent application are the introduction,description and warranty sections. 

Question 20

A trademark is given a 50-year registration with no renewal. 

Question 21

Protection against the leaking of trade secrets is difficult to enforce and noncompete agreements are not often successful in courts. 

Question 22

Contracts for the sale of real estate must be in writing to be valid. 

Question 23

Licensing agreements generate revenue while minimizing risk and start-up investment costs. 

Question 24

A trade secret is protected by state law. 

Question 25

An oral agreement is enforceable indefinitely. 

Question 26

A copyright can be used to protect sculptures or blueprints. 

Question 27

To file for trademark protection only intent to use is necessary. 

Question 28

Getting a trademark typically takes 2 years. 

Question 29

Copyright law does not apply to music,especially when downloaded from the Internet. 

Question 30

One benefit of having a registered trademark is that it provides a basis for filing trademark application in foreign countries. 

Question 31

Casualty insurance may include fire,burglary and theft,and business interruption coverage. 

Question 32

While dealing with leaking of trade secrets,legal action can be taken only after the secret has been revealed. 

Question 33

Life insurance of key employees is mandatory in some states. 

Question 34

Licensing a trademark generally involves a franchising agreement. 

Question 35

Once accepted,the trademark is published in the Trademark Official Gazette to allow any party 90 days to oppose or request an extension to oppose. 

Question 36

Licensing can be a way to start a new venture when the idea may infringe on someone else's patent,trademark,or copyright. 

Question 37

Private companies are not included in the Sarbanes-Oxley Act. 

Question 38

Under the Sarbanes-Oxley Act CEOs are not required to vouch for the firm's financial statements because they are not involved with the day to day operations of the firm. 

Question 39

Licensing requires the licensee to pay a royalty to the licensor in return for permission to copy the patent,trademark,or copyright. 

Question 40

A copyright protects original works of authorship. 

Question 41

A ________ is a contract between the government and an inventor. 

A) patent
B) franchise
C) trademark
D) trade secret

Question 42

Which of the following is not part of intellectual property

A) Trademarks
B) Copyrights
C) Trade secrets
D) Insurance

Question 43

The term of a copyright is the author's life plus: 

A) 20 years.
B) 30 years.
C) 50 years.
D) 70 years.

Question 44

Which of the following statements concerning patents is not true

A) A patent gives the owner a negative right, preventing anyone from making, using, or selling the defined invention.
B) A utility patent has a term of 20 years.
C) Plant patents are issues under the same provisions as utility patents.
D) Traditionally, utility patents were thought to be useless because it is easy to design around a patent.

Question 45

The section of the patent application that includes engineering specifications,materials and components is the: 

A) background and advantage section.
B) description of invention.
C) claims section.
D) executive summary.

Question 46

It takes approximately ________ to obtain a trademark. 

A) 12 months
B) 13 months
C) 14 months
D) 18 months

Question 47

To apply for a trademark: 

A) intent to use the mark is required.
B) the mark must actually have been used on goods.
C) the mark must be copyrighted.
D) the mark must have been used on goods that are already traded.

Question 48

The ________ is filed to establish a date of conception of an invention and replaces what used to be known as a disclosure document. 

A) provisional patent
B) defensive document
C) trademark
D) copyright

Question 49

The ________ patent is granted for a 14-year term. 

A) utility
B) design
C) plant
D) procedure

Question 50

Authors or publishers of software are protected under: 

A) copyrights.
B) trademarks.
C) utility patents.
D) trade secrets.

Question 51

Copyrights can protect all of the following except: 

A) music.
B) molded plastic parts.
C) sculptures.
D) models.

Question 52

Which of the following statements concerning trademarks is not true  

A) A trademark may be a word, slogan, symbol, design or particular sound.
B) Unlike a patent, trademarks last indefinitely.
C) It is possible to file for a trademark if you intend to use this mark in the future.
D) The PTO is responsible for the federal registration of trademarks.

Question 53

Which of the following is a contract that grants the owner protection,based on the appearance of an object  

A) Utility patent
B) Design patent
C) Plant patent
D) Disclosure document

Question 54

Which of the following is not one of the four requirements needed when filing a trademark registration

A) A drawing of the mark
B) A claims section
C) Five specimens showing actual use of the mark
D) A completed registration form and appropriate fee

Question 55

The section of the patent application which provides the criteria by which any infringement will be determined is the: 

A) background and advantages section.
B) description of the invention.
C) claims section.
D) executive summary.

Question 56

Which government office is responsible for the federal registration of trademarks  

A) U.S. Trademark Services
B) Local Chambers of Commerce
C) Patent and Trademark Office
D) Internal Revenue Service

Question 57

Copyrights are registered with: 

A) the U.S. Justice Department.
B) the Internet Commission.
C) the Patent and Trademark Office.
D) the Library of Congress.

Question 58

Priceline.com's service where a buyer can submit a price bid for a particular service is an example of a: 

A) utility patent.
B) design patent.
C) business method patent.
D) license.

Question 59

The initial registration for a trademark lasts: 

A) 10 years.
B) 14 years.
C) 17 years.
D) 20 years.

Question 60

Once accepted,the trademark is published in the Trademark Official Gazette to allow any party ________ days to oppose or request an extension to oppose the use of the mark. 

A) 10
B) 30
C) 90
D) 180

Question 61

What type of agreement must always be in writing in order to be a legally binding contract  

A) Client
B) Distributor
C) Supplier
D) Real estate

Question 62

Identify and describe the three different types of patents. 

Question 63

Which of the following is not a condition that makes a contract legally enforceable  

A) Consideration is given by both parties
B) All parties involved are competent
C) Money is exchanged for products/services
D) Acceptance of the offer must be voluntary

Question 64

Trade secrets are protected: 

A) by the General Agreement on Tariffs and Trade.
B) by federal law.
C) by state law.
D) by the Library of Congress.

Question 65

The courts consider oral agreements under $500 binding if: 

A) the agreement is for less than one year.
B) the parties have previously done business together.
C) the transaction is for services rendered.
D) the new venture is incorporated.

Question 66

Licensing has significant value as a marketing strategy to holders of patents,trademarks,or copyrights.Describe licensing agreements in each of the three intellectual property facets: patents,trademarks,and copyright.

Question 67

Which of the following statements concerning the Sarbanes-Oxley Act is not true

A) The Act requires CEOs to vouch for financial statements.
B) The Act provides that any attempt to influence the internal auditing process is considered a criminal act.
C) The Act applies to both private and public companies.
D) The Act requires independent audit committees which may conflict with some foreign countries' rules and customs.

Question 68

Trade secrets can be protected for: 

A) an unlimited period of time.
B) 20 years according to federal law.
C) 14 years according to state law.
D) 50 years if renewed to the maximum allowed, five 10-year renewable terms.

Question 69

What are the main benefits of a registered trademark
 

Question 70

What type of insurance would cover fire or burglary damage  

A) Property
B) Bonding
C) Life
D) Workers' Compensation

Question 71

Which of the following is true regarding the Sarbanes-Oxley Act  

A) It only applies to companies that make over $10 million in gross revenue.
B) Private companies are not included in this act.
C) The act does not cover fraud via TV or radio.
D) The act only covers a narrow range of corporate governance activity.

Question 72

Define a trade secret and briefly discuss a noncompetition agreement.

Question 73

Explain what makes a contract legally enforceable.

Question 74

Licensing can be used by the entrepreneur to: 

A) protect the Board of Directors from liability.
B) insulate management from liability.
C) protect confidentiality of a trade secret.
D) copy a competitor's patent.

Question 75

What type of insurance is mandatory in some states  

A) Property
B) Bonding
C) Life
D) Workers' Compensation

Question 76

The ________ created the commission that prescribes safety standards for products. 

A) Consumer Product Safety Act
B) Patent and Trademark Office
C) Sarbanes-Oxley Act
D) U.S. Labor Department