Question 1

A collective mark is a mark used exclusively by a licensee or franchisee to indicate that a product meets certain standards.

Accepted Answer

A collective mark is used by members of a collective group (such as an association or cooperative) to indicate membership in the group or to identify goods or services that meet the standards set by the group, not exclusively by a licensee or franchisee.

Question 2

A copyright gives its owner the right to prevent others from using the idea or the knowledge contained in the copyrighted work.

Accepted Answer

Copyright protects the expression of ideas, such as writing, music, and art, not the ideas or knowledge themselves.

Question 3

The right of an author to prohibit others from tampering with a copyrighted work is called the right of performance.

Accepted Answer

The right of an author to prohibit others from tampering with a copyrighted work is called the right of integrity, not the right of performance. The right of performance refers to the right to publicly perform or display a copyrighted work.

Question 4

A franchise in which the franchisee sells products it manufactures from a formula or from ingredients provided by the franchisor is called chain-style business.

Accepted Answer

A franchise in which the franchisee sells products that it manufactures from a formula or ingredients provided by the franchisor is called a product distribution franchise. A chain-style business is a type of franchise in which the franchisee operates under the franchisor's established product or service line and marketing strategy, but does not manufacture any products themselves.

Question 5

A patent is an incorporeal statutory right that gives an inventor, for a limited period, the exclusive right to use or sell a patented product or to use a patented method or process.

Accepted Answer

This is the definition of a patent as provided under most patent laws around the world.

Question 6

Inventions and trademarks are types of artistic property.

Accepted Answer

Inventions are protected as patents, and trademarks protect brands and logos, both of which fall under intellectual property, not specifically artistic property. Artistic property typically refers to copyrights, which protect original works of art.

Question 7

The World Intellectual Property Organization is responsible for administering the Paris and Berne Conventions.

Accepted Answer

The World Intellectual Property Organization (WIPO) is responsible for administering the Paris Convention for the Protection of Industrial Property and the Berne Convention for the Protection of Literary and Artistic Works.

Question 8

A pecuniary right is the right of an author to exploit a copyrighted work for economic gain.

Accepted Answer

A pecuniary right is a fundamental component of copyright law, as it grants the owner the exclusive right to exploit the work commercially and to receive compensation for such use. This can include the right to reproduce, distribute, perform, and display the work, among other things.

Question 9

The nonconditional protection principle states that common minimum standards for granting copyrights must be observed by all member states.

Accepted Answer

The nonconditional protection principle refers to the concept that copyright protection should not be conditional on formalities such as registration or deposit, rather than setting common minimum standards for granting copyrights.

Question 10

KFC and Pizza Hut are examples of distributorship.

Accepted Answer

KFC and Pizza Hut are examples of franchise businesses, where the franchisor (the brand) allows franchisees to use its trademark, products, and business model in exchange for a fee.

Question 11

When the TRIPS Agreement came into effect, the minimum term of protection for patents was set at 20 years for WTO member states.

Accepted Answer

The TRIPS Agreement did set the minimum term of protection for patents at 20 years for WTO member states.

Question 12

An agreement between a buyer and a seller is called a cartel.

Accepted Answer

A cartel is an agreement between multiple sellers in the same industry to coordinate their actions, such as fixing prices or limiting production, in order to increase their profits. It is not an agreement between a buyer and a seller.

Question 13

Parties to multilateral agreements are prevented from entering into bilateral arrangements.

Accepted Answer

Parties to multilateral agreements are not prevented from entering into bilateral arrangements as long as those arrangements do not conflict with the obligations of the multilateral agreement.

Question 14

The exhaustion-of-rights doctrine states that once a good made or sold under license is in circulation, the licensor has no further right to control its distribution.

Accepted Answer

The exhaustion-of-rights doctrine, also known as the first-sale doctrine, is a legal principle in copyright law that allows the purchaser of a lawful copy of a copyrighted work to sell, lend or otherwise dispose of that copy without the copyright owner's consent. Once a licensor has sold or transferred possession of a good made or sold under license, they lose the ability to control further distribution or resale of that item.

Question 15

The Patent Cooperation Treaty establishes an international mechanism that allows inventors to make a single application for patent protection that is equivalent to making a filing in all member states.

Accepted Answer

The statement accurately describes the purpose and functionality of the Patent Cooperation Treaty.

Question 16

The domestic sale of products manufactured under a license that only grants a foreign licensee the right to sell the goods overseas is called gray marketing.

Accepted Answer

Gray marketing, also known as parallel importing, refers to the practice of importing and selling genuine products through unauthorized channels of distribution. This can include selling products meant for foreign markets in domestic markets where they were not intended to be sold.

Question 17

A patent pool is an agreement to exchange licenses.

Accepted Answer

The answer of A patent pool is an agreement to...

Question 18

The patent granted for the invention of a new and useful process, machine, article of manufacture, or composition of matter is called a petty patent.

Accepted Answer

The patent granted for the invention of a new and useful process, machine, article of manufacture, or composition of matter is called a utility patent, not a petty patent.

Question 19

A certification mark is a mark or symbol used to identify a person who provides services.

Accepted Answer

A certification mark is actually a mark or symbol used to identify goods or products that meet certain standards or criteria set by an organization, not a person who provides services.

Question 20

Agreements between competitors that have the effect of diminishing competition are called vertical competition agreements.

Accepted Answer

Agreements between competitors that have the effect of diminishing competition are called horizontal competition agreements. Vertical competition agreements involve agreements between businesses at different levels of the supply chain, such as between a manufacturer and a distributor.

Quiz 9: Intellectual Property