Question 1

Which of the following is the most attractive target for pirates because of high development cost and low reproducibility costs?

Accepted Answer

Software, music, and movies are especially attractive targets for pirates because they are costly to develop but cheap to reproduce and distribute over the Internet. Judging from the press on the topic, one might conclude that China is the biggest piracy problem.

Question 2

Which of the following conventions is responsible for the promotion of the protection of intellectual property rights among all the member countries of the UN?

Accepted Answer

The World Intellectual Property Organization (WIPO) of the United Nations is responsible for the promotion of the protection of intellectual property and for the administration of the various multilateral treaties through cooperation among its member states.

Question 3

In a common-law country, ownership of intellectual property rights is established by "prior use versus registration" which implies that to claim the ownership of a trademark, an individual:

Accepted Answer

In the United States, a common-law country, ownership of IP rights is established by prior use-whoever can establish first use is typically considered the rightful owner.

Question 4

Which of the following acts developed by the European Union erases legal and trade differences that have existed for decades between the member nations?

Accepted Answer

The Internet is by its nature a global enterprise for which no political or national boundaries exist.

Question 5

_____ buy and register descriptive nouns, geographic names, names of ethnic groups and pharmaceutical substances, and other similar descriptors and hold them until they can be sold at an inflated price.

Accepted Answer

Cybersquatters buy and register descriptive nouns, geographic names, names of ethnic groups and pharmaceutical substances, and other similar descriptors and hold them until they can be sold at an inflated price.

Question 6

In which of the following countries is the ownership of IP rights established by prior use?

Accepted Answer

In the United States, a common-law country, ownership of IP rights is established by prior use-whoever can establish first use is typically considered the rightful owner.

Question 7

Arbitration clauses require agreement wherein the concerned parties agree:

Accepted Answer

Arbitration clauses require agreement on two counts: (1) The parties agree to arbitrate in the case of a dispute according to the rules and procedures of some arbitration tribunal and (2) they agree to abide by the awards resulting from the arbitration.

Question 8

Which of the following commonly counterfeited products has the potential for doing the greatest harm to the consuming public?

Accepted Answer

Although counterfeit CDs, toys, and similar products cost companies billions of dollars in lost revenue and have the potential of damaging the product's brand image, the counterfeiting of pharmaceuticals can do serious physical harm.

Question 9

Which of the following poses a major challenge to international marketers while dealing with counterfeiting?

Accepted Answer

Collusions between the contract manufacturer and illegitimate sellers poses a great difficulty for law-enforcement authorities trying to tackle the problem of counterfeiting and piracy.

Question 10

Which of the following countries has enacted the most stringent green marketing laws that regulate the management and recycling of packaging waste?

Accepted Answer

Germany has passed the most stringent green marketing laws that regulate the management and recycling of packaging waste.

Question 11

The question of jurisdiction of U.S. law over acts committed outside the territorial limits of the country has been settled by the courts through application of a long-established principle of international law called the:

Accepted Answer

The question of jurisdiction of U.S. law over acts committed outside the territorial limits of the country has been settled by the courts through application of a long-established principle of international law, the "objective theory of jurisdiction."

Question 12

Which of the following should ideally be the first step in the settlement of a dispute?

Accepted Answer

One authority suggests that the settlement of every dispute should follow four steps: first, try to placate the injured party; if this does not work, conciliate, arbitrate, and, finally, litigate.

Question 13

When all else fails in an international commercial dispute, the final step is:

Accepted Answer

When all else fails, the final step to solve a dispute is litigation.

Question 14

The _____ of the United States makes it illegal for companies to pay bribes to foreign officials, candidates, or political parties.

Accepted Answer

The Foreign Corrupt Practices Act (FCPA) makes it illegal for companies to pay bribes to foreign officials, candidates, or political parties. Stiff penalties can be assessed against company officials, directors, employees, or agents found guilty of paying a bribe or of knowingly participating in or authorizing the payment of a bribe.

Question 15

The _____ is a multicountry agreement that has established a regional patent system that allows any nationality to file a single international application for a European patent.

Accepted Answer

Two multicountry patent arrangements have streamlined patent procedures in Europe. The first, the Patent Cooperation Treaty (PCT), facilitates the process for application for patents among its member countries. The second, the European Patent Convention (EPC), established a regional patent system allowing any nationality to file a single international application for a European patent.

Question 16

Which of the following international conventions was established to recognize intellectual property rights?

Accepted Answer

One of the three major international conventions is The Paris Convention for the Protection of Industrial Property, commonly referred to as the Paris Convention, includes the United States and 100 other countries.

Question 17

Which of the following is true with regard to the Internet?

Accepted Answer

Until uniform international laws apply worldwide, companies will have to rely on individual-country laws, which may or may not provide protection.

Question 18

Which of the following is the most comprehensive multilateral agreement on intellectual property to date and covers a full range of rights that are embodied in current international agreements?

Accepted Answer

The Trade-Related Aspects of Intellectual Property Rights (TRIPs) agreement, a major provision of the World Trade Organization, is the most comprehensive multilateral agreement on intellectual property to date.

Question 19

According to Canadian law, what is the standard expected by courts in Canada to determine whether a representation is false or misleading?

Accepted Answer

Courts have been directed by Canadian law to take into account, in determining whether a representation is false or misleading, the "general impression" conveyed by the representation as well as its literal meaning. The courts are expected to apply the "credulous person standard," which means that if any reasonable person could possibly misunderstand the representation, the representation is misleading.

Question 20

Which of the following is an effective approach to prevent Chinese consumers from creatively copying foreign intellectual property?

Accepted Answer

The author suggests an excellent way for IP-rich firms to make money in China currently and in the near future, using the oldest pricing strategy of all: Charge what the market will bear. Even with the reluctant help of the Chinese authorities in enforcing the WTO/TRIPs agreement, Chinese consumers will continue the creative copying of foreign intellectual property until they are charged what they perceive as "reasonable" prices.

Quiz 7: The International Legal Environment: Playing by the Rules