Deck 12: The Importance of Intellectual Property

Question 1

Since the first patent was granted, there have been over ________ patents granted in the United States.

A) 500,000
B) 3 million
C) 5 million
D) 7 million
E) 9 million

Answer 1

D

Question 2

Which of the following is an example of intellectual property?

A) Microsoft's headquarters in Redmond, Washington
B) Nike's swoosh logo
C) the computer that you use
D) AirTran's fleet of planes
E) the trucks that deliver White Wave soymilk to grocery stores

Answer 2

B

Question 3

Which of the following was not identified in the textbook as one of the common mistakes that entrepreneurs make regarding intellectual property?

A) not fully recognizing the value of their intellectual property
B) not properly identifying all their intellectual property
C) not properly registering their Internet domain names
D) not using their intellectual property as part of their overall plan for success
E) not taking sufficient steps to protect their intellectual property

Answer 3

C

Question 4

A utility patent is good for ________ from the date of the original application, a design patent is good for ________ from the date the patent is granted, and a plant patent is good for ________ from the date of the original application.

A) 14 years, 14 years, 20 years
B) 20 years, 20 years, 14 years
C) 20 years, 20 years, 20 years
D) 20 years, 14 years, 20 years
E) 14 years, 20 years, 14 years

Question 5

Which form of intellectual property protection is the only one expressly mentioned in the original articles of the U.S. Constitution?

A) assurances
B) patents
C) copyrights
D) trade secrets
E) trademarks

Question 6

Which of the following isn't an example of intellectual property?

A) Proactiv's formula for acne medication
B) Yahoo's trademark
C) the Internet domain name www.starbucks.com
D) Microsoft's Window operating system
E) a computer mouse

Question 7

________ patents are the second most common type of patent and cover the invention of new, original, and ornamental designs for manufactured products.

A) Aesthetic
B) Utility
C) Visual
D) Blueprint
E) Design

Question 8

Ecovative Design, the company profiled in the opening feature for Chapter 12, makes an organic building insulation from mushrooms. Ecovative Design received a big boost in late 2008 when it won the coveted Picnic Green Challenge Prize in Amsterdam, Holland. In U.S. dollars, the prize was approximately:

A) $25,000
B) $50,000
C) $100,000
D) $250,000
E) $750,000

Question 9

There are three basic requirements for a patent to be granted. The subject of the patent application must be:

A) useful, difficult to copy, and novel in relational to prior arts in the field
B) based on cutting edge science or technology, not obvious to a person of ordinary skill in the filed, and rare
C) useful, novel in relation to prior arts in the field, and not obvious to a person of ordinary skill in the field
D) rare, difficult to copy, and not obvious to a person of ordinary skill in the field
E) useful, scientific, and novel in relation to prior arts in the field

Question 10

________ patents are the most common type of patent and cover what we generally think of as new inventions.

A) Value
B) Product
C) Method
D) Utility
E) Design

Question 11

Which of the following is not one of the four key forms of intellectual property protection?

A) trade secrets
B) copyrights
C) trademarks
D) innovations
E) patents

Question 12

The term of a utility patent is:

A) 7 years from the date the patent is granted
B) 15 years from the date of the initial application
C) 15 years from the date the patent is granted
D) 20 years from the date of the initial application
E) 20 years from the date the patent is granted

Question 13

A grant from the federal government conferring the rights to exclude others from making, selling, or using an invention for a specific period of time is referred to as a:

A) trademark
B) copyright
C) idea secret
D) innovation
E) patent

Question 14

Amazon.com's one-click ordering system, Priceline.com's "name-your-price" business model and Netflix's method for allowing customers to set up a rental list of movies they want mailed to them are examples of:

A) copyright extension patents
B) utility patents
C) business process protection patents
D) trademark extension patents
E) business method patents

Question 15

Which of the following are the four key forms of intellectual property protection?

A) patents, copyrights, trademarks, and trade secrets
B) discoveries, convents, trademarks, patents
C) patents, official documents, copyrights, inventions
D) discoveries, Internet domain names, innovations, trademarks
E) convents, inventions, opportunities, and copyrights

Question 16

The sole entity responsible for granting patents in the United States is the:

A) U.S. Patent and Trademark Office
B) Federal Patent, Copyright and Trademark Office
C) Securities and Exchange Commission
D) U.S. Departments of Patents
E) U.S. Treasury Department

Question 17

The What Went Wrong feature in Chapter 12 focuses on Dippin' Dots, a company that sells ice cream snacks. Dippin' Dot's lost the patent on its small beads of ice cream primarily because:

A) it failed to obtain permission from a patent holder that has "prior art" pertaining to the claims in its patent
B) it had sold its ice cream product one year prior to applying for a patent
C) it filed its patent application incorrectly
D) its patent infringes on the patent of a competitor
E) it failed to renew its patent on time

Question 18

________ takes place when one party engages in the unauthorized use of another party's patent.

A) Patent breach
B) Patent encroachment
C) Patent violation
D) Patent infraction
E) Patent infringement

Question 19

Which of the following selections correctly identifies the three types of patents?

A) manufacturing patents, process patents, and plant patents
B) usefulness patents, purpose patents, and genetic patents
C) explicit patents, implicit patents, and plant patents
D) utility patents, design patents, and plant patents
E) manufacturing patents, service patents, and other patents

Question 20

There are two primary rules of thumb for deciding if intellectual property protection should be pursued for a particular intellectual asset. First, a firm should determine if the intellectual property in question is directly related to its competitive advantage. Second, a firm should determine if its intellectual property:

A) is less than 20 years old
B) could be licensed to another company
C) has value in the marketplace
D) is something that was developed "in-house"
E) rightfully belongs to the firm or the employees who developed it

Question 21

A company's customer list is most commonly protected under ________ regulations.

A) patent
B) copyright
C) trade secret
D) trademark
E) collective mark

Question 22

________ occurs when one work derives from another or is an exact copy or shows substantial similarity to the original work.

A) Copyright infringement
B) Copyright violation
C) Copyright intrusion
D) Copyright breach
E) Copyright violation

Question 23

According to current regulations, any copyrightable work created on or after January 1, 1978, is protected by copyright law for the life of the author plus:

A) 28.5 years
B) 101 years
C) 40 years
D) 55 years
E) 70 years

Question 24

Which of the following is not generally eligible for trademark protection?

A) trade dress
B) shapes
C) words
D) surnames
E) designs or logos

Question 25

Copyright law is governed by the:

A) U.S. Constitution
B) The 1946 Intellectual Property Act
C) The 1966 Trademark and Copyright Act
D) The 1955 Inventors and Writer's Protection Act
E) Copyright Revision Act of 1976

Question 26

Which of the following symbols is the copyright bug?

A) ç
B) €
C) ¢
D) ©
E) ™

Question 27

If a local band wrote their own rendition of a Celine Dion song, the band could try to copyright their rendition of the song as a:

A) imitative work
B) offshoot work
C) derivative work
D) subsequent work
E) supplemental work

Question 28

Which of the following is not a type of trademark?

A) trademark
B) certification mark
C) documentation mark
D) collective mark
E) service mark

Question 29

eHarmony for dating, eBags for bags, and Proactiv for acne medication are examples of:

A) certifications
B) copyrights
C) patents
D) trade secrets
E) trademarks

Question 30

A form of intellectual property protection that grants to the owner of a work of authorship the legal right to determine how the work is used and to obtain the economic benefits from the work is referred to as a:

A) assurance document
B) patent
C) trade secret
D) brand
E) copyright

Question 31

________ are similar to ordinary trademarks, but they are used to identify the services or intangible activities of a business rather than a business's physical product.

A) Creative marks
B) Intangible marks
C) Examination marks
D) Service marks
E) Subtle marks

Question 32

The Good Housekeeping Seal of Approval is an example of a:

A) collective mark
B) shared mark
C) service mark
D) certification mark
E) assessment mark

Question 33

Which of the following is an example of a certification mark?

A) Overstock.com
B) International Franchise Association
C) Underwriter's Laboratories
D) Rotary International
E) 1-800-FREE-411

Question 34

The Partnering for Success feature in Chapter 12 starts by talking about Gary Schwartzberg, who along with a partner, developed a new type of bagel, dubbed the "Begeler," that was eventually licenses to Kraft. According to the feature, entrepreneurs and inventors, like Gary Schwartzberg, are finding that large consumer products companies are:

A) are ambivalent about what they have to offer
B) are increasingly interested in what they have to offer for new products, but are ambivalent about services
C) increasingly interested in what they have to offer
D) are increasingly interested in what they have to offer for new services, but are ambivalent about products
E) increasingly disinterested in what they have to offer

Question 35

There are four types of trademarks:

A) trademarks, service marks, collective marks, and certification marks
B) examination marks, trademarks, combined marks, and service marks
C) shared marks, collective marks, mutual marks, and trademarks
D) service marks, cooperative market, trademarks, and shared marks
E) trademarks, collective marks, documentation marks, and combined marks

Question 36

________ are trademarks or service marks used by the members of a cooperative, association, or other collective group, including marks indicating membership in a union or similar organization.

A) Collective marks
B) Share marks
C) Examination marks
D) Joint marks
E) Certification marks

Question 37

A trademark is renewable:

A) every 10 years, as long as the mark remains in use
B) indefinitely, regardless of whether the mark remains in use
C) every 20 years from the date of application for the trademark
D) every 3 years
E) every 33 years

Question 38

Which of the following statements about copyrights is incorrect?

A) Businesses typically possess a treasure trove of copyrightable material.
B) A musical composition that is written down is copyrightable.
C) Copyrightable material may be in tangible or intangible form.
D) The 1976 Copyright Act governs copyright law in the U.S.
E) A copyright is a form of intellectual property protection.

Question 39

A trademark is registered with the:

A) U.S. Commerce Department
B) Federal Trade Commission
C) Securities and Exchange Commission
D) Federal Patent, Copyright, and Trademark Office
E) U.S. Patent and Trademark Office

Question 40

Copyright law protects any work of authorship:

A) 90 days after it is approved by the U.S. Copyright Office
B) one year after it assumes a tangible form
C) the moment it assumes a tangible form
D) as soon as it is approved by the U.S. Copyright Office
E) 30 days after it assumes a tangible form

Question 41

The ________, which was drafted in 1979 by a special commission, attempted to set nationwide standards for trade secret legislation.

A) Intangible Assets Protection Act
B) Fairness in Intellectual Property Act
C) Uniform Trade Secrets Act
D) Trademark & Copyright Act
E) Economic Espionage Act

Question 42

The owner of a patent is granted a legal monopoly for an unlimited period of time.

Question 43

The Savvy Entrepreneurial Firm feature in Chapter 12 focuses on a copyright infringement case involving the owners of work originally produced by Elvis Presley and Passport Video, a company that produced a video documentary of Elvis' life. Passport Video, which did not get permission to use songs, interviews and other material produced by Elvis and used in the documentary, claimed they did not need formal approval because the documentary on Elvis' life was scholarly research and should therefore be protected under the ________ exemption to copyright law.

A) trivial infringement
B) minor application
C) fair use
D) slight use
E) incidental utilization

Question 44

According to the textbook, trade secret disputes arise most frequently when:

A) one firm alleges that it can legally use another firm's trade secrets because they were "voluntarily" disclosed
B) an employees leaves a firm to join a competitor and is accused of taking confidential information with him or her
C) one firm claims that another firm outright stole its trade secrets
D) one firms claims that what another firm is claiming as a trade secret is common knowledge
E) one firm claims that it obtained another firm's trade secrets through legal means

Question 45

The average time for the approval of a patent is 16 months.

Question 46

A trademark is a word, name, symbol, or device used to identify the source or origin of products or services and to distinguish those products or services from others.

Question 47

A utility patent can be obtained for a new product or process or the "idea" for a new product or process.

Question 48

Combinations of numbers and letters, such as 3M and 1-800-FREE-411, cannot be trademarked.

Question 49

The federal Economic Espionage Act, passed in 1996, criminalizes:

A) copyright infringement
B) utility patent violations
C) trademark violations
D) design patent violations
E) the theft of trade secrets

Question 50

Consider the following questions: Are products under development that require patent protection?; Are we in compliance with the copyright license agreements into which we have entered?; Is anyone infringing on our trademarks; and Are company trade secrets leaking out to competitors? These are the types of questions that would be asked when conducting a(n):

A) intangible material examination
B) intellectual property inventory
C) intangible material inspection
D) patent, trademark, copyright, and trade secret review
E) intellectual property audit

Question 51

Certification marks are similar to ordinary trademarks, but they are used to identify the services or intangible activities of a business rather than a business's physical product.

Question 52

Patents, trademarks, copyrights, and licenses are the four key forms of intellectual property.

Question 53

A patent is a grant from the federal government conferring the rights to exclude others from making, selling, or using an invention for the term of the trademark.

Question 54

There are two primary reasons to conduct an intellectual property audit. First, it is prudent for a company to periodically determine whether its intellectual property is being properly protected. The second reason for a company to conduct an intellectual property audit is to:

A) remained prepared for a Security & Exchange Commission spot inspection
B) remain prepared to justify its value in the event of a merger or acquisition
C) remain prepared for an initial public offering
D) update the value of its intellectual property on its balance sheet
E) make sure no intellectual property has been stolen

Question 55

An ________ is conducted to determine the intellectual property a company owns.

A) intellectual property audit
B) intangible materials audit
C) academic property inventory
D) intellectual materials inventory
E) intangible property inventory

Question 56

Which of the following items would typically be protected by a form of intellectual property protection other than trade secret statutes?

A) financial forecast
B) product formula
C) a company's tagline
D) logs of sales calls
E) employee roster

Question 57

A ________ is any formula, pattern, physical device, idea, process, or other information that provides the owner of the information with a competitive advantage in the marketplace.

A) patent
B) copyright
C) trademark
D) trade secret
E) certification mark

Question 58

________ include marketing plans, product formulas, financial forecasts, employee rosters, logs of sales calls, and laboratory notebooks.

A) Trade secrets
B) Trademarks
C) Collective marks
D) Patents
E) Copyrights

Question 59

Utility patents are the most common type of patent and cover what we generally think of as new inventions.

Question 60

Intellectual property is any product of human intellect that is intangible but has value in the marketplace.

Question 61

A copyright is a form of intellectual property protection that grants to the owner of a work of authorship the legal right to determine how the work is used and to obtain the economic benefits from the work.

Question 62

A trade secret is any formula, pattern, physical device, idea, process, or other information that provides the owner of the information with a competitive advantage in the marketplace.

Question 63

What is a copyright? What is protected by a copyright?

Question 64

Trade secret disputes arise most frequently when one firm alleges that a trade secret claimed by another firm is common knowledge, and can therefore be used by anyone.

Question 65

An intellectual property audit is conducted to determine the intellectual property a company owns.

Question 66

Computer software is not covered by copyright law.

Question 67

Trademark law falls under the Lanham Act, which passed in 1946.

Question 68

The 1976 Copyright Revision Act governs copyright law in the U.S.

Question 69

The federal Economic Espionage Act, passed in 1996, criminalizes the theft of trade secrets.

Question 70

Identify and briefly describe the three types of patents.

Question 71

What is a trademark? Why are trademarks important?

Question 72

A trademark consisting primarily of a surname, such as Jones or Smith, is typically not protectable.

Question 73

What are the two primary rules of thumb for determining whether intellectual property protection should be pursued for a particular intellectual asset?

Question 74

Copyright infringement occurs when one work derives from another or is an exact copy.

Question 75

What is intellectual property? Why is it called "intellectual" property? Why is intellectual property such an important issue for entrepreneurial firms?