Deck 9: Protecting Innovation

Question 1

Wholly proprietary systems are usually quickly commoditized and provide little appropriability of rents to their developers.

Answer 1

False

Question 2

If an inventor received a utility patent in the United States in June 2004,then his patent would be valid as of the same date in countries who have signed the Paris Convention,if he applies for protection within those countries within 12 months for a utility patent.

Answer 2

True

Question 3

A patent now lasts 17 years in the United States.

Answer 3

False

Question 4

A trade secret receives no legal protection in the United States.

Question 5

The degree to which a firm is able to capture the rents from its innovation is known as its monopolization potential.

Question 6

If multiple firms benefit from a technology's success,the developer of that technology has a much greater incentive to invest in further developing the technology.

Question 7

If you live in a country that is a member of the Madrid Union and you register a trademark,that trademark is valid throughout the entire world.

Question 8

Steve's book,The Ten Commandments of Leadership,has been registered with the Copyright Office.It will remain valid for Steve's lifetime plus 70 years.

Question 9

"Feature creep" refers to a company deleting features from its core product to pass the burden of those features on to other companies.

Question 10

If a tobacco farmer comes up with a new plant that one can smoke without experiencing any negative health effects,he could receive a plant patent for it.

Question 11

If you want to file a claim of trademark infringement in court,you must have registered that trademark.

Question 12

If a computer hardware company gives access to parts of its technology to a few software companies so they can produce complementary programs,but maintains approval of those programs before they can go on the market,it is providing limited licensing.

Question 13

It is legal for Tom to download Madonna's songs in MP3 format and create compact discs that he sells to his friends at school.

Question 14

If a firm lacks the production capability or expertise to produce a sufficient range of complementary goods,it should support an open technology strategy and utilize forms of sponsorship.

Question 15

In the new shoe glider industry,standardization and compatibility of complements is important to the safety of the product as sold to consumers.External development will encourage standardization and compatibility.

Question 16

The technology in Jinxbox Company's magic crystal ball will become wholly open when its patent expires.

Question 17

An industry can sometimes pressurize a company to provide open (or partially open)access to a new technology.

Question 18

If JetShoes is not able to produce the shoe glider technology at a sufficient volume or quality level,then protecting the technology so the firm is the sole provider may significantly boost the rate of adoption.

Question 19

In the United States,an inventor is allowed to publish an invention provided he has secured a patent for that invention.

Question 20

Sometimes,not vigorously protecting a technology works to the firm's advantage.

Question 21

Andrew designed a license plate holder for automobiles that makes theft of the license plate practically impossible.He has filed an application for a patent through the Patent Cooperation Treaty (PCT)office and it has been approved.How long does this application protect his right to file for patent protection in the member countries?

A) 3 days
B) 6 months
C) 1 year
D) 2 ½ years

Question 22

Singing Cards decided to make its technology open; which of the following is likely to happen?

A) The technology may have more rapid adoptions.
B) The price of the technology will rise dramatically.
C) The production of complementary goods will slow down and eventually cease.
D) The firm's installed base will decrease.

Question 23

Joe was told that he should allow his newly developed investment software program to be open source software as this way

A) he will reap more profits.
B) it will spread and be adopted more rapidly.
C) he can better control the platform development.
D) he can keep the technology from fragmenting.

Question 24

_____ specifies a minimum level of copyright protection for all member countries,and requires member countries to offer the same protection to both its own citizens and foreign nationals.

A) The Berne Convention
B) The Universal Copyright Convention
C) The Rome Convention
D) The Brussels Convention

Question 25

It is not legal for you to sell copies of your own original songs with a label that indicates the songs are by Madonna because

A) that would be a patent violation.
B) that would be a trademark violation.
C) that would be a copyright violation.
D) that would be a trade secret violation.

Question 26

Trista has come up with a secret recipe for cookies and has sold them through exclusive outlets all around Atlanta.Sales are skyrocketing.She had to hire two employees to help her make the cookies.Now she is afraid one of them will quit and start a rival company using her recipe.What advice would you give her?

A) Have the employees sign a nondisclosure agreement
B) Register the recipe as a trade secret
C) Offer the employees monetary compensation in exchange for their silence
D) Have the court issue a gag order on the employees

Question 27

Andrew designed automobile tyres that are filled with foam and have a unique polycarbon exterior; the tires can never go flat.Is it likely that Andrew can patent his invention?

A) Yes, it is useful, novel, and not obvious.
B) No, it is merely an improvement of an existing object.
C) Yes, because new tyres are always patentable.
D) No, he would need to seek copyright protection.

Question 28

Which of the following is likely to happen if Singing Cards decides to protect its technology that makes singing greeting cards possible?

A) Singing Cards is not likely to improve the technology.
B) Singing Cards may discourage the development of advertising for this new technology.
C) Singing Cards may subsidize the development of complementary technology.
D) Singing Cards will probably have more incentive to invest money in technological development, promotion, and distribution.

Question 29

Singing Cards decided to make its technology open so external companies could contribute to the development of the technology.As a result

A) a much larger pool of talent and resources will try to improve the technology.
B) a greater degree of coordination of research efforts for this technology will develop.
C) the direction of the technology development will be more unified.
D) Singing Cards will be able to control the entry and timing of technology enhancements.

Question 30

Steve wrote a book called The Ten Commandments of Leadership that he gave to people who attended his workshops on Leadership.The copyright protection for this book

A) is nonexistent unless Steve registers it with the Copyright Office.
B) is in effect from the time the book was printed.
C) will last for only 28 years.
D) will last until Steve dies.

Question 31

Trista has come up with a secret recipe for cookies and has sold them through exclusive outlets all around Atlanta.Sales are skyrocketing and her friends tell her to patent the recipe.However,she does not want to even tell the government agency her secret ingredients.Is there anything she can do to keep the recipe legally protected?

A) No, not unless she is willing to register her recipe.
B) Yes, her recipe can be considered a trade secret and is already afforded legal protection.
C) Yes, she can declare her recipe a trade secret and register it with the U.S. Trade Secret Agency.
D) Yes, but any protection she obtains will only be recognized in the state of Georgia, where she lives.

Question 32

If Gerusa is able to protect its cancer treatment technology and it cannot be easily imitated,then the appropriability would be

A) high.
B) moderate.
C) low.
D) nonexistent.

Question 33

Frank was able to design a pair of sunglasses that could be folded and put into a case that easily fits into a shirt or pant pocket.Frank wants to know if he can receive a patent on this invention.What would you tell him?

A) He can receive a patent since it is useful.
B) He cannot receive a patent since he is merely changing the size and making the sunglasses more portable.
C) It is patentable, but only if the sunglasses are not made out of plastic.
D) It is patentable because sunglasses are products.

Question 34

The scientists at Gerusa are former award-winning Soviet scientists who have all focused their attention on a cancer treatment.Working together,they have come up with remarkable solutions.The knowledge base they have

A) is explicit.
B) is easily imitable.
C) is socially complex.
D) has a low degree of appropriability.

Question 35

To make sure companies do not receive patents in countries where they do not intend on making the invention,some countries have a "working requirement" that

A) if the product does not work, it will not be granted a patent.
B) patents will only be granted to people who have been working in their country for at least one year.
C) the invention must be manufactured in the country where the patent was granted for a specified period of time.
D) the workers who manufacture the product must be from the country where the patent was granted.

Question 36

When JetShoes obtained architectural control over the shoe glider technology,it

A) could direct the future development path of shoe glider technology.
B) ensured its compatibility with the complements produced by others.
C) limited its potential to influence other firms in the industry.
D) has restricted the possibilities of 'feature creep'.

Question 37

Sally lives in a country that is a member of the Madrid Union and has registered her trademark within her country.That trademark is now protected

A) throughout the entire world.
B) only in the other countries that are members of the Madrid Union.
C) only in her own country and she has 3 years to register it in the other Madrid Union countries and it will be valid from the date she first registered it in her own country.
D) in over 500 countries.

Question 38

Kendra wrote a computer program containing software algorithms that can predict the success of a movie before it has been released.Is this patentable?

A) No, but she can get a copyright on it.
B) Yes, since a Supreme Court ruling in 1998 upheld a patent on software algorithms.
C) No, but she can trademark it.
D) No, she should seek trade secret protection.

Question 39

In the 1970s,Church & Dwight developed Arm & Hammer Baking Soda Deodorants.Within 6 months,the product was very successful and another company released Arm & Hamer Deodorant to try to capture some of the market created by Church & Dwight.Can Church & Dwight prevent the maker of Arm & Hamer from selling their product?

A) Probably, because the other company's brand name is very similar to the trademark of Church & Dwight.
B) No, the other company's brand is different enough to withstand any challenge.
C) No, you cannot protect a brand name legally, only the product itself.
D) It is impossible to say using the information provided.

Question 40

If Harold receives a utility patent for an invention in the United Sates in August 2004,by when must he apply for a patent in other countries who have signed the Paris Convention to have a patent recognized there as of the same date?

A) 3 days
B) 3 months
C) 6 months
D) 12 months

Question 41

Andrew designed a license plate holder for automobiles that makes theft of the license plate practically impossible.He has limited income and feels that he needs to protect his patent in numerous countries so he can sell his product there later on.Explain how Andrew can accomplish this.

Question 42

Fred Stringer has come up with a new computer program to help online sellers manage online auctions at sites such as eBay and others.It is superior to just using a spreadsheet to track auctions.He would like his program to become the dominant design,but also wants to earn a profit from all his hard work.What can Fred do to meet both of these objectives?

Question 43

Joshua recently developed a new kind of camera.He has a working prototype and needs to raise money for production,so he wants articles about his camera to appear in various publications.What kind of problem might that pose for Joshua if he wants to seek patents in other countries later on?

Question 44

Your friend states that the enforcement of copyright law in the music industry is bad for consumers because it prevents them from being able to access,download,and trade music freely.How might you attempt to explain the benefits to consumers of copyright protection of music?

Question 45

Why would an industry "gang up" on one company that comes out with a new technology? Could this ever cause the company with the new technology to allow the technology to be more open?

Question 46

Singing Cards not only developed singing greeting cards,but also has the best holographic engineers in the business.The company can influence the development of the singing card technology toward the inclusion of holographic images more easily if it has

A) trade secrets.
B) an open source policy.
C) architectural control.
D) dynamic capabilities.

Question 47

In the 1970s,Church & Dwight developed Arm & Hammer Baking Soda Deodorant.Within 6 months the product was very successful and another company released Arm & Arm Deodorant to try to capture some of the market created by Church & Dwight.Can Church & Dwight prevent the other company from selling their product? What must Church & Dwight do?

Question 48

The demand for Singing Cards has been really high,but now customers are complaining because the supply is so low.Singing Cards cannot keep up with demand,so a good alternative would be to

A) protect the technology.
B) improve the technology.
C) diffuse the technology.
D) develop complementary goods.

Question 49

JetShoes has a great shoe glider,but does not have the money or personnel to develop the technology faster.That is a problem because government regulators will not approve the sale of this product within the U.S.until further safety features are developed.This is a case for

A) external development through open technology.
B) greater architectural control.
C) proprietary technology.
D) setting higher prices.

Question 50

Singing Cards produced not only the first singing greeting card in the market,but also the musical racks on which they are displayed,and the special envelopes used for mailing them (complementary products).It is in the best interest of Singing Cards to _____ architectural control over the evolution of this technology.

A) relinquish
B) exert
C) abandon
D) transfer

Question 51

JetShoes has developed a great shoe glider but in order to work well,they need a good set of batteries and a recharging system.For this technology to be successful,batteries and recharging systems must be

A) produced only by the company producing the shoe gliders.
B) produced only by complementing companies.
C) produced only by subsidiary companies.
D) produced by either the company producing the shoe gliders or the complementing companies or both.