Question 1

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

Accepted Answer

The protections of property often do not apply automatically to ownership of intangible knowledge resources you or your business creates. Depending on the type of information, you may be required to undertake certain steps to protect the time, effort, and money spent in developing knowledge in order to transform it into valuable intangible assets.

Question 2

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

Question 3

Any private individual or a public firm can bring a case under the Economic Espionage Act (EEA).

Accepted Answer

The Economic Espionage Act (EEA) 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. Only the federal government can bring a case under the EEA.

Question 4

Although various state laws make intentional trade secret misappropriation a crime,most criminal prosecutions today take place under the federal Economic Espionage Act (EEA).

Accepted Answer

Although various state laws make intentional trade secret misappropriation a crime, the primary criminal prosecutions today take place 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 5

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. In the case of trade secrets, the injunction orders those who have misappropriated the trade secret to refrain from using it or telling others about it. In rare instances, the injunction may also order that one delay in taking a new job.

Question 6

Trade secrets are required to be unique.

Accepted Answer

Note that trade secrets do not have to be unique; two businesses may have trade secret property in substantially the same knowledge.

Question 7

If,through your own effort,you are able to recreate the same information that another considers to be a trade secret,a misappropriation has occurred.

Accepted Answer

Importantly, independent creation does not constitute misappropriation. If, through your own effort, you are able to recreate the same information that another considers to be a trade secret, no misappropriation has occurred.

Question 8

Employers can only enforce a covenant not to compete if they have 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 9

A patent is a legal monopoly in 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. Historically, a patent was any legal monopoly openly issued by the government, and it was not necessarily associated with a new idea.

Question 10

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. Property relationships are believed to be more productive in allocating scarce resources and producing new ones than legal relationships that merely divide resources equally.

Question 11

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 grace period).

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 grace period). This limitation exists even if it is the inventor who undertakes such actions.

Question 12

Innocently acquiring a secret from another without knowledge of their theft is generally misappropriation.

Accepted Answer

Misappropriation obviously occurs when one improperly acquires secret information through burglary, espionage, or computer hacking. On the other hand, innocently acquiring a secret from another without knowledge of their theft is generally not misappropriation.

Question 13

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

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 14

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. Firms that do not have an intellectual property strategy in place risk losing valuable assets.

Question 15

LinkedIn is an example of a service mark.

Accepted Answer

A service mark is one that is associated with a service, for example LinkedIn.

Question 16

Intellectual property systems presume that the long-term benefits of increased information and investment are greater than the short-term costs.

Accepted Answer

Intellectual property systems presume that the long-term benefits of increased information and investment are greater than the short-term costs.

Question 17

To qualify as a trade secret,any form of knowledge protected must have economic value.

Accepted Answer

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

Question 18

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. They cover subject matter more similar to copyrights.

Question 19

Trademarks indicate a specific producer.

Accepted Answer

For thousands of years, people have used marks on what they produce to represent the origin of goods and services. Pottery from ancient Greece, Rome, and China often bears the mark of its maker. The same is true for ancient building materials like brick and tile. Today, we generally call such marks trademarks and when they indicate a specific producer, the law protects them against use by others.

Question 20

Trade secrets lose property in knowledge-based resources when they come into contact with suppliers,customers,repair technicians,or even visitors.

Accepted Answer

As long as a company takes reasonable measures to prevent the public dissemination of trade secrets, it does not lose its property in knowledge-based resources merely because customers, suppliers, repair technicians, or even visitors come into contact with the secrets.

Quiz 11: Intellectual Property

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

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

Any private individual or a public firm can bring a case under the Economic Espionage Act (EEA).

Although various state laws make intentional trade secret misappropriation a crime,most criminal prosecutions today take place under the federal Economic Espionage Act (EEA).

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

Trade secrets are required to be unique.

If,through your own effort,you are able to recreate the same information that another considers to be a trade secret,a misappropriation has occurred.

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

A patent is a legal monopoly in copying and marketing a new invention.

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

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 grace period).

Innocently acquiring a secret from another without knowledge of their theft is generally misappropriation.

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

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

LinkedIn is an example of a service mark.

Intellectual property systems presume that the long-term benefits of increased information and investment are greater than the short-term costs.

To qualify as a trade secret,any form of knowledge protected must have economic value.

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

Trademarks indicate a specific producer.

Trade secrets lose property in knowledge-based resources when they come into contact with suppliers,customers,repair technicians,or even visitors.