Question 1

Misappropriation occurs when one discloses information that one was under a duty to keep secret, even if the original acquisition was proper.

Accepted Answer

Misappropriation obviously occurs when one improperly acquires secret information through burglary, espionage or computer hacking. However, misappropriation also occurs when one discloses information that one was under a duty to keep secret, even if the original acquisition was proper.

Question 2

Once information is in the public domain, an intellectual property right can be applied to recapture it.

Accepted Answer

In general, once information is in the public domain, an intellectual property right cannot be applied to recapture it.

Question 3

Fair use of a registered trademark is allowed by the Economic Espionage Act.

Accepted Answer

Fair use of a registered trademark is allowed by the Lanham Act and relates to a discussion, criticism, or parody of the trademark, the product, or its owner.

Question 4

A patent is a legal monopoly in the tangible resource of copying and marketing a new invention.

Accepted Answer

Today, a patent is firmly associated with an inventive act, and conveys a right to exclude others from making, using selling or importing the covered invention.

Question 5

The justification for intellectual property is the same as for the private property system.

Accepted Answer

The justification for intellectual property is the same as for the private property system generally.

Question 6

When an owner does not defend against the unauthorized use of a trademark, the trademark is most likely to become generic.

Accepted Answer

A trademark is most likely to become generic (1) when an owner does not defend against unauthorized use and (2) when the public becomes confused as to whether a term refers to a particular product/service or refers to a general class of products/services.

Question 7

Trademarks indicate a specific producer.

Accepted Answer

Today, we generally call such marks trademarks and when they indicate a specific producer, the law protects them against use by others.

Question 8

Recreating, through legitimate means, the same information that another considers to be a trade secret is still considered misappropriation.

Accepted Answer

If, through legitimate means, you are able to recreate the same information that another considers to be a trade secret, no misappropriation has occurred.

Question 9

An injunction is an order by a judge either to do something or to refrain from doing something.

Accepted Answer

An injunction is an order by a judge either to do something or to refrain from doing something.

Question 10

The courts can declare a trademark invalid even if the U.S. Patent and Trademark Office has accepted registration.

Accepted Answer

Note that a court can declare a mark invalid even if the PTO accepted registration.

Question 11

To qualify as a trade secret, the knowledge protected must have economic value.

Accepted Answer

A trade secret is any form of knowledge or information that (1) has economic value from not being generally known to or readily ascertainable by proper means by, others and (2) has been the subject of reasonable efforts by the owner to maintain secrecy.

Question 12

Employers can only enforce a covenant not to compete if they can show a valid business purpose for doing so.

Accepted Answer

The law states that employers can enforce agreements (or contractual "covenants") not to compete only when there is a "valid business purpose" for the contract.

Question 13

Under patent law even if an invention is otherwise new, it fails the novelty test if it has been described in a publication, sold, or put to public use more than one year before a patent application on it is filed (the one-year rule).

Accepted Answer

Under patent law even if an invention is otherwise new, it fails the novelty test if it has been described in a publication, sold, or put to public use more than one year before a patent application on it is filed (the one-year rule).

Question 14

Monster.com, a job search website, is an example of a collective mark.

Accepted Answer

Collective mark is a mark representing membership in a certain organization or association, for example, the National Football League logo.

Question 15

Trade dress refers to a color or shape associated with a product or service.

Accepted Answer

Trade dress refers to a color or shape associated with a product or service.

Question 16

If the protection of intellectual property rights did not exist, the pace of research and development (R&D) in business would likely be enhanced.

Accepted Answer

Conversely, without intellectual property, the pace of creative research and development (R&D) in business would slow dramatically.

Question 17

To protect knowledge or information as a trade secret, the business must prove that it took special and extraordinary measures to keep that knowledge and information secret.

Accepted Answer

To protect information as a trade secret, the information must actually be secret, and the business must take reasonable measures to keep it so.

Question 18

Although there are civil penalties for stealing trade secrets, no criminal penalties exist at this current time.

Accepted Answer

Although various state laws make intentional trade secret misappropriation a crime, the primary criminal prosecutions today result under the federal Economic Espionage Act (EEA). The act makes it a crime to steal (intentionally misappropriate) trade secrets and provides for fines and up to 10 years' imprisonment for individuals and up to a $5 million fine for organizations.

Question 19

Design patents apply to the appearance of an article of manufacture, unrelated to its function.

Accepted Answer

Design patents apply to the appearance of an article of manufacture, unrelated to its function.

Question 20

The protections of property often do not apply automatically to ownership of intangible knowledge resources.

Accepted Answer

The protections of property often do not apply automatically to ownership of intangible knowledge resources.

Quiz 11: Intellectual Property

Misappropriation occurs when one discloses information that one was under a duty to keep secret, even if the original acquisition was proper.

Once information is in the public domain, an intellectual property right can be applied to recapture it.

Fair use of a registered trademark is allowed by the Economic Espionage Act.

A patent is a legal monopoly in the tangible resource of copying and marketing a new invention.

The justification for intellectual property is the same as for the private property system.

When an owner does not defend against the unauthorized use of a trademark, the trademark is most likely to become generic.

Trademarks indicate a specific producer.

Recreating, through legitimate means, the same information that another considers to be a trade secret is still considered misappropriation.

An injunction is an order by a judge either to do something or to refrain from doing something.

The courts can declare a trademark invalid even if the U.S. Patent and Trademark Office has accepted registration.

To qualify as a trade secret, the knowledge protected must have economic value.

Employers can only enforce a covenant not to compete if they can show a valid business purpose for doing so.

Under patent law even if an invention is otherwise new, it fails the novelty test if it has been described in a publication, sold, or put to public use more than one year before a patent application on it is filed (the one-year rule).

Monster.com, a job search website, is an example of a collective mark.

Trade dress refers to a color or shape associated with a product or service.

If the protection of intellectual property rights did not exist, the pace of research and development (R&D) in business would likely be enhanced.

To protect knowledge or information as a trade secret, the business must prove that it took special and extraordinary measures to keep that knowledge and information secret.

Although there are civil penalties for stealing trade secrets, no criminal penalties exist at this current time.

Design patents apply to the appearance of an article of manufacture, unrelated to its function.

The protections of property often do not apply automatically to ownership of intangible knowledge resources.