Deck 6: Intellectual Property and Other Legal Issues for the Entrepreneur

Question 1

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.

Answer 1

True

Question 2

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.

Answer 2

False

Question 3

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

Answer 3

True

Question 4

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.

Question 5

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

Question 6

Chet Kanojia,CEO of Aereo recently lost his case in the Supreme Court because of an infringement of the copyright law.

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

The Patent Cooperation Treaty,which has over 100 participants,was established to facilitate patent filings in multiple countries in one office rather than filing in each separate country.

Question 12

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

Question 13

An entrepreneur should seek a patent attorney who has experience in their product line.

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

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

Question 16

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

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

Copying a product and improving it is not patent infringement.

Question 19

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

Question 20

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

Question 21

Licensing a trademark generally involves a franchising agreement.

Question 22

One benefit of having a registered trademark is that it establishes the right to deposit registration with customs to prevent importation of goods with a similar mark.

Question 23

Licensing requires the licensee to pay a royalty to the licensor.

Question 24

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 25

The reason that many noncompete agreements,which help protect trade secrets,are thrown out of court is that they are poorly structured and written.

Question 26

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

Question 27

A trade secret is protected by state law.

Question 28

An oral agreement is enforceable indefinitely.

Question 29

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

Question 30

Health Insurance is now required in any company for employees who work more than 20 hours per week.

Question 31

A copyright can be used to protect sculptures or blueprints.

Question 32

Health insurance premiums are less expensive if there is a large group of insured participants.

Question 33

Getting a trademark typically takes 2 years.

Question 34

A copyright protects original works of authorship.

Question 35

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

Question 36

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

Question 37

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

Question 38

Skyrocketing medical costs have resulted in lowering workers' compensation insurance premiums.

Question 39

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

Question 40

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

Question 41

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

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

Question 42

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 43

Copyrights can protect all of the following except:

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

Question 44

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 45

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 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

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

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

Question 49

Which of the following statements is(are)not true?

A)A trademark may be a word,slogan,symbol,design or particular sound.
B)Unlike a patent,trademark does not last indefinitely.
C)It is possible to file for a trademark if you intend to use this mark in the future.
D)There are four categories of trademarks.

Question 50

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 51

The initial registration for a trademark lasts:

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

Question 52

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 53

Copyrights are registered with:

A)the U.S.Justice Department.
B)the Internet Commission.
C)the GATT.
D)the Library of Congress.

Question 54

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

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

Question 55

A patent attorney hired as a specialist to help the entrepreneur obtain a patent would most likely be hire on a:

A)retainer fee
B)success fee
C)out-of-pocket reimbursement
D)one-time fee

Question 56

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

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

Question 57

The _______ was established to facilitate patent filings in multiple countries.

A)General Agreement on Trades and Tariffs
B)Patent and Trademark Office
C)Sarbanes-Oxley Act
D)Patent Cooperation Treaty

Question 58

The entire trademark registration process takes approximately:

A)7 months
B)13 months
C)18 months
D)2 years

Question 59

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 60

Authors or publishers of software are protected under:

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

Question 61

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 62

What type of insurance is mandatory in some states?

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

Question 63

Explain what makes a contract legally enforceable

Question 64

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 65

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 66

Identify and describe the major parts of a patent application.
A.Introduction - this section should contain the background and advantages of the invention and the nature of problems that it overcomes.It should clearly state how the invention differs from existing offerings.
B.Description of Invention - should contain a brief description of the drawings that accompany it.These drawings must comply with PTO requirements.Following this would be a detailed description of the invention,which may include engineering specifications,materials,components,and so on,that are vital to the actual making of the invention.
C.Claims - the most difficult section of the application to prepare since claims are the criteria by which any infringements will be determined.Essential parts of the invention should be described in broad terms so as to prevent others from getting around the patent.At the same time,the claims must not be so general that they hide the invention's uniqueness and advantages.

Question 67

Licensing represents opportunities for:

A)expanding into new markets.
B)reach more customers in existing target markets.
C)an entrepreneur to profit with less risk and costly start-up investment.
D)an entrepreneur to gain access to others' copyrights,trademarks and patents.

Question 68

What are the main benefits of a registered trademark?

Question 69

What type of insurance would cover fire or burglary damage?

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

Question 70

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 71

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 72

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

A)Consumer Product Safety Act
B)Patent Cooperation Treaty
C)Sarbanes-Oxley Act
D)U.S.Labor Department

Question 73

List the four requirements of filing for a trademark.

Question 74

Identify and describe the three different types of patents.

Question 75

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 76

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.