Deck 8: Licensing and Intellectual Property

Question 1

Generally,compensation clauses specify the currency in which royalty payments are to be made.

Answer 1

True

Question 2

An American university professor derives a new formula which explains a fundamental principle of nature.In the United States,this formula:

A)can be patented.
B)cannot be patented.
C)can be patented if it is novel.
D)cannot be patented because it is not useful.

Answer 2

B
Explanation: Excluded from patent protection are laws of nature,physical phenomena,and abstract ideas.Thus,a new mineral discovered in the earth,a plant found in the wild,or a mathematical formula is not patentable.Such discoveries are manifestations of nature,free to all people and reserved exclusively to none.

Question 3

A business can reduce the risk of suffering devastating losses in the event of an expropriation through licensing.

Answer 3

True

Question 4

The risk of a licensee producing inferior goods or inferior service is drastically reduced if the licensor closely monitors his/her activities.

Question 5

An individual can freely use the trade secrets of another if he discovers them through means such as reverse engineering.

Question 6

The United States awards the exclusive rights over patentable subjects to the first individual to file an application rather than the inventor of the product or process.

Question 7

The TRIPS agreement stipulates that trademarks,service marks,and geographical indications must be registered in order to be protected.

Question 8

TRIPS permits nations to issue compulsory licenses when a patent holder does not make patented goods available to the public.

Question 9

A patent:

A)grants its owner the exclusive right to make,use,or sell an invention or process for an indefinite period.
B)deprives competitors of the opportunity to use the invention without the patent holder's consent.
C)creates a permanent monopoly thereby discouraging the creation and utilization of new products and technologies.
D)includes articles or processes falling under the category of physical phenomena or abstract ideas.

Question 10

The exclusive dealing clause permits the licensee from providing goods or services that are competitive with those supplied by the licensor.

Question 11

A service mark is a descriptive term that distinguishes businesses rather than their products or services.

Question 12

The direct copyright infringement theory of recovery has been used effectively against suppliers of peer-to-peer file sharing software that has been used to download DVDs from the Internet.

Question 13

Trademark dilution laws focus on protecting the investment of trademark owners,while traditional trademark laws were intended to protect consumers.

Question 14

Patents,trademarks,copy rights,and trade secrets are basic types of:

A)intellectual property.
B)community property.
C)business property.
D)patented property.

Question 15

The Unites States awards patent privileges based on a ____ standard.

A)first to contemplate
B)first to use
C)first to file
D)first to invent

Question 16

A grant-back provision requires the licensee to transfer any inventions it derives from the licensed technology to the licensor.

Question 17

A patent generally is effective for 10 years from the date of filing.

Question 18

The World Trade Organization (WTO)addresses intellectual property rights under the:

A)TRIPS agreement.
B)TRIMS agreement.
C)FCRA agreement.
D)ERISA agreement.

Question 19

Trademark dilution laws protect "distinctive" or "famous" marks from unauthorized uses even when confusion is not likely to occur.

Question 20

A copyright comes into existence in the United States only after the work has been registered with the appropriate governmental office.

Question 21

Which of the following statements is true about trade secrets?

A)A trade secret usually receives legal protection even if its owner did not take reasonable precautions to keep it a secret.
B)A trade secret generally does not include processes,techniques,and compilations of information.
C)A business may attempt to maintain a trade secret when it has a process or product that is not novel enough to receive patent protection.
D)A business may attempt to maintain the trade secret if the monopoly period for patents is relatively long.

Question 22

Courts are unwilling to provide trademark protection to a term if it is:

A)arbitrary.
B)generic.
C)descriptive.
D)suggestive.

Question 23

Technology transfer agreements:

A)protect "distinctive" or "famous" marks from unauthorized uses even when confusion is not likely to occur.
B)permit a company to quickly penetrate a foreign market without incurring the substantial financial and legal risks associated with direct investment.
C)prevent an intellectual property owner from granting to another the right to use protected technology in return for some form of compensation.
D)assert that priority of trademark rights in the United States depends solely upon the priority of use in the States,and not anywhere else in the world.

Question 24

When the trademark is a descriptive term:

A)courts routinely treat the term as distinctive to legal merit.
B)protection exists only if a claimant proves that the term conveys to consumers a secondary meaning of association with the claimant.
C)courts are unwilling to afford the term trademark protection.
D)it qualifies for trademark protection automatically and functions as the common descriptive name of a product class.

Question 25

An individual may freely use the trade secret of another if:

A)it was discovered through reverse engineering.
B)it was acquired from someone who breached a duty of confidentiality regarding the secret.
C)it was obtained by improper means.
D)it was acquired by breaching the duty of confidentiality regarding the secret.

Question 26

Which of the following is an advantage of licensing?

A)It permits quicker foreign market penetration than direct investment.
B)It maximizes the physical and financial presence of a business overseas.
C)It allows the licensee to directly benefit by receiving royalty payments.
D)It allows the first person to register a trademark to become its legal owner.

Question 27

A trade secret is also called ____.

A)performance standard
B)contributory copyright
C)compilation of information
D)propriety information

Question 28

The principle of first in time equals first in right:

A)asserts that it is enough to have invented the mark first.
B)is a fundamental principle of service mark law.
C)asserts that it is enough to have used the mark earlier in any country.
D)is bound by the territoriality principle.

Question 29

The unauthorized reproduction of creative works is prohibited by a(n):

A)inventor's certificate.
B)patent.
C)compulsory license.
D)copyright.

Question 30

A distinctive word,name,symbol,or device used by a business to distinguish its goods from those of its competitors is called a ____

A)service name.
B)service mark.
C)trade name.
D)trademark.

Question 31

The person who owns the intellectual property is known as the ____.

A)warrantor
B)licensee
C)guarantor
D)licensor

Question 32

Which of the following statements is true of the Trade Related Aspects of Intellectual Property Agreement?

A)It permits nations to issue compulsory licenses when a patent holder does not make patented goods available to the public.
B)It prevents least developed nations from using compulsory licenses to guarantee the production of low-cost drugs.
C)It prevents developing nations from installing safeguards as protection against low-cost drugs being resold in the developed world.
D)It permits the developed nations to issue inventor's certificates which would entitle its holder to exclusive use of the creation.

Question 33

Aspirin has lost its trademark protection because the name has become so widely used that it has acquired a ____ meaning.

A)generic
B)descriptive
C)arbitrary
D)comprehensive

Question 34

Which of the following statements is true of the registration system for trademarks?

A)In the United States,a trademark is eligible for registration in the absence of prior commercial use.
B)U.S.trademarks are generally registered for 20-year terms and the holder may renew the registration only twice.
C)The registration of a trademark must contain a clear description of what is being protected and must be available to the public.
D)Registration is not mandatory for service marks and geographical indications to be protected.

Question 35

One of the conditions that a plaintiff must show in order to recover for trademark infringement is that:

A)the defendant used the mark only in exports.
B)the defendant's use of the mark was in connection with the advertising of goods.
C)the defendant's use of the trademarks dilutes their distinctive quality.
D)the defendant began using the trademarks after they became famous.

Question 36

Which of the following statements is true about patent infringement in the U.S?

A)The court holds only the infringer accountable for the unlawful activities.Accomplices are not considered liable under the U.S infringement law.
B)There is no affect on the importation of foreign goods that infringe U.S.patent rights.
C)Infringement does not occur when a product patented in the U.S is made and sold in another country.
D)The court grants an automatic injunction in cases of infringement.

Question 37

Trademark dilution laws:

A)protect "distinctive" or "famous" marks from unauthorized uses even when confusion is not likely to occur.
B)are intended at protecting consumers rather than focusing on protecting the investment of trademark owners.
C)permit a company to quickly penetrate a foreign market without incurring the substantial financial and legal risks associated with direct investment.
D)require the licensee to transfer any inventions it derives from the licensed technology to the licensor.

Question 38

The "fair use" defense against copyright infringement:

A)does not apply if the use enhances the value or marketability of the original work.
B)applies if there are substantial differences between the copyrighted work and the derivative work.
C)applies only to creative works rather than informational works.
D)does not apply for commercial uses that are presumptively fair.

Question 39

In the United States,the copyright period for works for hires:

A)is 110 years from the first publication or 140 years from creation,whichever comes first.
B)lasts for the life of the author plus 70 years.
C)is 95 years from the first publication or 120 years from creation,whichever comes first.
D)lasts for the life of the author plus 120 years

Question 40

The _____ theory of recovery has been used effectively against several suppliers of peer-to-peer file sharing software that has been used to download CDs and DVDs from the Internet.

A)contributory copyright infringement
B)vicarious copyright infringement
C)direct copyright infringement
D)indirect copyright infringement

Question 41

As a part of their new business expansion strategies,an Italian company,manufacturing car accessories,licensed a local firm in Kenya for production of car sun shades.After running a successful business for one year,the Kenyan firm manufactured its own car shades with local resources and started selling them at lower rates.This was a violation of the _____ clause in licensing agreements which prohibits the licensee from providing goods or services that are competitive with those supplied by the licensor.

A)granting
B)requirements
C)exclusive dealing
D)technical service

Question 42

Briefly explain the three distinct time frames when secrecy provisions under the confidentiality clause of licensing agreements may be utilized.

Question 43

How can a copyright holder recover under the theory of contributory copyright infringement?

Question 44

Which of the following statements is true for the confidentiality clause?

A)It restricts the licensor's right to disclose trade secrets after the licensing agreement has ended.
B)During a licensing agreement,it permits the licensor to limit the number of people with whom the licensee may share the technology.
C)It restricts the licensee's right to disclose the information only when the licensed technology is not a trade secret.
D)Prior to licensing,it does not allow potential licensees to inspect the technology the licensor is providing.

Question 45

A licensor may retain certain markets for himself while allowing the licensee to exploit the licensed technology everywhere else in the world.This provision is found in the:

A)exclusive dealing clause.
B)grant-back clause.
C)territoriality principle.
D)territorial restriction.

Question 46

What are technology transfer agreements?

Question 47

Which of the following is a drawback of technology licensing?

A)The licensee can sever the licensing relationship and become a competitor after gaining access to the licensor's technology.
B)The licensee runs the constant risk that the licensor will provide inferior service.
C)Licensing maximizes the physical and financial presence of a business overseas thereby exposing it to risks.
D)Licensing escalates the risks of suffering devastating losses in the event of an expropriation.

Question 48

How can a plaintiff recover for trademark infringement?

Question 49

The _____ is a fundamental provision found in most licensing contracts which indicates the precise scope of the license.

A)technical service clause
B)confidentiality clause
C)granting clause
D)exclusive dealing clause

Question 50

Briefly explain the extraterritorial reach of the U.S patent law.