Deck 12: The Importance of Intellectual Property

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

Answer 1

E

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

Answer 2

D

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

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

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

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

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

________ 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 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

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

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

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

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

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

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

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

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

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

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

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

Question 21

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(n):

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

Question 22

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," which was eventually licensed to Kraft. According to the feature, entrepreneurs and inventors, like Gary Schwartzberg, are finding that large consumer products companies are:

A) ambivalent about what they have to offer
B) 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) 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 23

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 24

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

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

Question 25

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 26

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(n):

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

Question 27

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 United States.
E) A copyright is a form of intellectual property protection.

Question 28

________ 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 29

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 30

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 31

Which of the following symbols is the copyright bug?

A) ç
B) €
C) ¢
D) ©
E) ™

Question 32

Apple for computers, Zeo for sleep aids, and Proactiv for acne medication are examples of:

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

Question 33

________ 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 34

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 35

The Good Housekeeping Seal of Approval is an example of a(n):

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

Question 36

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 37

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 38

The main exclusion from copyright laws is that copyright laws cannot protect:

A) ideas
B) dramatic works
C) computer software
D) musical compositions
E) literary works

Question 39

________ 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 duplication

Question 40

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 41

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 42

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 43

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) remain 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 44

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 45

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

Question 46

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

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

Question 47

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

Question 48

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 49

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 50

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 51

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? 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 52

The average time for the approval of a patent is 19 months.

Question 53

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

Question 54

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

Question 55

________ 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 56

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 57

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 employee 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 58

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 59

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

Question 60

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

Question 61

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

Question 62

Computer software is not covered by copyright law.

Question 63

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

Question 64

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

Question 65

Identify and briefly describe the three types of patents.

Question 66

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

Question 67

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

Question 68

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

Question 69

What is a trademark? Why are trademarks important?

Question 70

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

Question 71

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 72

The 1976 Copyright Revision Act governs copyright law in the United States.

Question 73

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 74

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 75

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