Question 1

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

Accepted Answer

A grant from the federal government that confers exclusive rights to exclude others from making, selling, or using an invention for a specific period of time is called a patent. Trademarks are used to protect symbols, logos, or phrases that identify a product or service, while copyrights protect creative works such as books, music, and art. An idea secret refers to protecting confidential business information from being disclosed to others, while innovation is a general term used to describe the introduction of new ideas, products, or services.

Question 2

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

Accepted Answer

The term of a utility patent in the United States is 20 years from the date of the initial application, subject to the payment of maintenance fees.

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

Accepted Answer

Registering Internet domain names is not specifically mentioned as a common mistake regarding intellectual property. The other choices, recognizing the value, identifying all IP, using IP as part of their plan for success, and protecting IP, are all discussed in the textbook as common mistakes entrepreneurs make regarding intellectual property.

Question 4

Which of the following is not an example of intellectual property?
A) Proactiv's formula for acne medication
B) Google's trademark
C) the Internet domain name www.nytimes.com
D) Microsoft's Windows operating system
E) a computer mouse

Accepted Answer

A computer mouse is a tangible, physical object and therefore cannot be classified as intellectual property. The other options all involve intangible creations such as formulas, trademarks, domain names, and software, which can be protected as intellectual property.

Question 5

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 relation to prior arts in the field
B) based on cutting edge science or technology, not obvious to a person of ordinary skill in the field, 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

Accepted Answer

The subject of a patent application must meet three basic requirements: it must be useful, novel in relation to prior arts in the same field, and not obvious to a person of ordinary skills in the field. Option A is incorrect because being difficult to copy is not a requirement, and it is covered by the requirement of being not obvious. Option B is incorrect because rareness is not a requirement for a patent, and "cutting edge" is too subjective. Option D is incorrect because the requirement for rareness is not present, and the requirement for difficulty in copying is covered by the requirement of being not obvious. Option E is incorrect because requiring the invention to be based only on science limits the potential types of patentable areas.

Question 6

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

Accepted Answer

The U.S. Patent and Trademark Office (USPTO) is the sole entity responsible for granting patents in the United States. The other options listed are not involved in this process.

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

Accepted Answer

Design patents specifically cover the creation of new and original designs for manufactured products, including their ornamental appearances. Utility patents, on the other hand, cover the invention of new and useful processes, machines, compositions of matter, and other useful and unique inventions. Aesthetic, visual, and blueprint patents are not commonly used terms in patent law.

Question 8

________ 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

Accepted Answer

Utility patents are the most common type of patent and cover new inventions that have a useful function and utility. They can cover machines, processes, compositions of matter, and improvements on existing inventions.

Question 9

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

Accepted Answer

As of 2021, there have been over 10 million patents granted by the United States Patent and Trademark Office (USPTO), but the question specifies "since the first patent was granted." The first US patent was granted in 1790, and as of August 2021, the USPTO reports that there have been over 7 million patents granted since then. Therefore, the correct answer is D) 7 million.

Question 10

Which of the following are the four key forms of intellectual property protection?
A) patents, copyrights, trademarks, and trade secrets
B) discoveries, covenants, trademarks, patents
C) patents, official documents, copyrights, inventions
D) discoveries, Internet domain names, innovations, trademarks
E) convents, inventions, opportunities, and copyrights

Accepted Answer

The four key forms of intellectual property protection are patents, copyrights, trademarks, and trade secrets. These are legally recognized and enforced rights designed to protect different types of intellectual property such as inventions, artistic works, and business logos.

Question 11

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

Accepted Answer

Nike's swoosh logo is an example of intellectual property, as it is a unique design that is protected by trademark laws. The other options are physical assets or products that are not considered intellectual property.

Question 12

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

Accepted Answer

The three types of patents are utility patents (covering new and useful processes, machines, articles of manufacture, and compositions of matter), design patents (covering new, original, and ornamental designs for an article of manufacture), and plant patents (covering new varieties of plants that have been asexually reproduced). The other options listed do not accurately identify the three types of patents.

Question 13

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

Accepted Answer

The four key forms of intellectual property protection are trade secrets, copyrights, trademarks, and patents. Innovations are not considered a distinct form of intellectual property protection.

Question 14

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

Accepted Answer

The second rule of thumb is to determine if the intellectual property has value in the marketplace. This is because if the intellectual property has no value, then it may not be worth the cost and effort of pursuing intellectual property protection.

Question 15

Metroleap Media, Inc., places music lyrics on the Internet. The major hurdle that Metroleap Media had to overcome to become a legitimate business was to:
A) find ways to protect its trademark
B) find ways to protect its trade secrets
C) obtain a copyright on its Web site
D) obtain a patent on the functionality of its Web site
E) develop a protocol for obtaining licensing agreements from the music industry

Accepted Answer

The major hurdle for Metroleap Media would have been to develop a protocol for obtaining licensing agreements from the music industry since placing music lyrics on the Internet without proper permission could lead to copyright infringement lawsuits. Protecting trademarks, trade secrets, obtaining a copyright, or a patent would not necessarily be the most pressing concern for the business at its initial stage.

Question 16

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

Accepted Answer

These examples are all related to business methods or processes, which are protected under business method patents. Business method patents are a type of utility patent that covers unique methods of conducting business.

Question 17

________ 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

Accepted Answer

Patent infringement is the unauthorized use, manufacture, sale, or importation of an invention that is protected by a patent. It involves the violation of the exclusive rights of a patent holder, such as making, using, or selling the patented invention without permission.

Question 18

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

Accepted Answer

Patents are the only form of intellectual property protection that is expressly mentioned in the original articles of the U.S. Constitution. Article I, Section 8, Clause 8 states that Congress has the power to "promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries." This clause refers specifically to patents and copyrights, but patents are the only one mentioned in the original text.

Question 19

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

Accepted Answer

A utility patent lasts for 20 years from the date of the original application, a design patent lasts for 14 years from the date it is granted, and a plant patent lasts for 20 years from the date of the original application.

Question 20

The What Went Wrong feature in Chapter 12 focuses on Dippin' Dots, a company that sells ice cream snacks. Dippin' Dots 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

Accepted Answer

Dippin' Dots lost the patent on its small beads of ice cream primarily because it had sold its ice cream product one year prior to applying for a patent. This violated the novelty requirement for obtaining a patent, which mandates that an invention must not have been publicly disclosed or sold for more than one year before filing a patent application.

Quiz 12: The Importance of Intellectual Property

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(n) :

The term of a utility patent is:

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

Which of the following is not an example of intellectual property?

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

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

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

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

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

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

Which of the following is an example of intellectual property?

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

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

Metroleap Media, Inc., places music lyrics on the Internet. The major hurdle that Metroleap Media had to overcome to become a legitimate business was to:

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:

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

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

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.

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