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37. The Paris Convention:
a. Is the seminal patent protection treaty.
b. Requires national treatment for foreign trademark and patent applications from signatory countries.
c. Provides a trademark holder in any signatory country a twelve-month period of priority within which to make
similar applications in signatory countries.
d. A, B, and C.
38. Copyright protection for works of authorship available through the Internet is expressly provided by:
a. The Berne Convention.
b. The WIPO Copyright Treaty.
c. The TRIPS Agreement.
d. None of the above.
39. Which of the following regulatory schemes for technology transfer agreements is most indicative of a protectionist
government policy?
a. Preapproval.
b. Notification/registration.
c. No regulation.
d. None of the above.
40. The three regulatory schemes for a technology transfer agreement range from least prohibitive to most prohibitive in
which of the following choices:
a. Notification/registration, no regulation, preapproval.
b. Preapproval, notification/registration, no regulation.
c. No regulation, notification/registration, preapproval.
d. No regulation, preapproval, notification/registration.
41. The importation of foreign-made trademarked merchandise into the U.S. for sale in competition with the U.S.
trademark owner's own merchandise made in the U.S. is referred to as:
a. Copycat competition.
b. Gray marketing.
c. Reverse trade advantage.
d. Black marketing.
42. The type of arrangement in which the licensor permits the licensee to sell certain goods under the licensor's
trademark or logo is called:
a. Trademark lease agreement.
b. Shared benefit agreements.
c. Franchise agreement.
d. None of the above.
43. The concept of language politics in systems franchise agreements refers to:
a. The legal system's primary language must be recognized.
b. A country that requires a certain language to be used to conduct business in a certain region.
c. Efforts to incorporate the home country's language into standard business practice of the host country are
extensive.
d. None of the above.
44. Common restrictions imposed on the use of technology include geographic limitations on the licensee's manufacturing
and/or marketing activities. These types of restrictions are also known as:
a. Field of use limitations.
b. Non-technical limitations.
c. Operating limitations.
d. Implied effort of cooperation limitations.
45. The three types of regulatory schemes for transfer agreements that exist include all but which of the following:
a. Preapproval.
b. Notification/registration.
c. No regulation.
d. All are types of regulatory schemes.
46. Intellectual property rights in some countries are not protected because:
a. Some countries actually encourage their citizens to violate the property rights of foreigners because it is
economically advantageous to do so.
b. Some countries that have intellectual property laws fail to enforce them.
c. Some countries enforce their intellectual property laws in a discriminatory fashion.
d. All of the above.
47. The greatest protection offered to the holder of intellectual property rights comes from:
a. The Paris Convention.
b. The Patent Cooperation Treaty.
c. The Uniform Copyright Convention.
d. Local laws.
48. The patent protection treaty that gives a trademark holder in any signatory country a twelve-month period of priority
within which to make similar applications in other signatory countries is known as:
a. The Patent Cooperation Treaty.
b. The International Convention for the Protection of Industrial Property.
c. The International Intellectual Property Treaty.
d. The Uniform Copyright Convention.
49. Transfer agreements in Japan and some newly developed countries such as Korea require:
a. Approval by the government.
b. Negotiation between the foreign licensor and the government.
c. Notification to the government.
d. Assurance that the agreement has not be entered into corruptly.
50. When it seems likely that a licensee may develop improvements in the licensed technology, a licensor may wish to
include a in the license agreement.
a. Grant back provision.
b. Field use provision.
c. Technology transfer.
d. Promise of confidentiality.
51. The TRIPS Agreement:
a. Became effective July 1, 1995.
b. Promises to create a more effective international system for protection of IPRs.
c. Requires every member of the WTO to abide by the Paris Convention and the Uniform Copyright
Convention.
d. A, B, and C.
52. TRIPS requires every member of the World Trade Organization to:
a. Abide by the Paris Convention.
b. Abide by the Berne Convention.
c. Apply national treatment to foreign owners of intellectual property rights.
d. Provide patent protection for processes.
e. All of the above.
53. What defense can an accused party use when accused of IP infringement?
a. non-infringement
b. invalidity
c. unenforceability
d. all of the above
54. Which of the following is true about fair, reasonable, and nondiscriminatory (FRAND) licensing terms?
a. FRAND licensing applies only in limited circumstances.
b. FRAND licensing has curbed litigation in a meaningful way.
c. FRAND licensing is not practiced in the U.S.
d. None of the above
55. Company A wants to use some technology that Company B has developed, so Company A pays Company B a
license fee, called a(n):
a. permission fee.
b. royalty.
c. IPR.
d. rights payment.
56. Lindsey and Martin Smith of Ontario, Canada, have paid McDonald's a fee for limited permission to use its
trademarks, copyrights, and know-how in running a fast-food restaurant in Ontario for the next five years. The
Smiths have purchased a(n):
a. license.
b. royalty.
c. IPR.
d. None of the above
57. When a person registers a domain name with the intent to profit from the goodwill of a trademark belonging to
another, it is called:
a. domain assumption.
b. cybersquatting.
c. domain preemption.
d. bad faith registration.
Subjective Short Answer
58. Compare and contrast TRIPS with IPR in the U.S. or another country (for example, India).
59. Compare and contrast the risks of international licensing to a company versus those associated with trading goods.
60. Among the recent legal and technological issues reported in the WIPO magazine available on-line, which do you
believe are the most important for the U.S.? Assess their relative importance to other countries.
61. Assess the relative merits of producing a new product or technology abroad as opposed to domestically.
62. Compare and contrast attitudes toward technology transfers in the developed countries, developing countries, and
countries strongly influenced by Marxist ideology.
63. Develop a document that proposes international standards for trademark licensing or use by a subsidiary (or sale to a
third party) of copyrighted material.
64. Draft a bill to address the problem of gray market goods (or that enacts the Lever Rule -- students will need to do
outside research regarding the Lever Rule).
65. Create the structure or standards for an on-line international dispute resolution forum handling IPR issues.
Essay
Exhibit 17-1
Accuraphoto USA (AUSA) owns the "Accuraphoto" trademark in the United States. AUSA produces the
"SureShot" camera, which is known to consumers as a moderately priced quality product. AUSA entered into a
contract with Honshu Photographic, Inc. (HPI), a Japanese corporation. Pursuant to the terms of the contract, HPI
was permitted to manufacture and market "SureShot" cameras utilizing the "Accuraphoto" trademark in return for
payment of royalties based upon a percentage of HPI's sales. After producing "SureShot" cameras for a short time
at its Japanese facility, HPI moved production to its facility in the Philippines in order to reduce labor costs. The
cameras produced at the Philippine facility utilized the "Accuraphoto" trademark but were marketed under the name
"SharpShot." Additionally, these cameras contained improved electronic features incorporated into the product by
HPI engineers. Despite the inclusion of these improvements, "SharpShot" cameras proved to be of inferior quality.
Furthermore, "SharpShot" cameras have begun to show up on the shelves of U.S. discount retailers such as K-Mart
and Wal-Mart. Additionally, several "SharpShot" cameras have been sent by American consumers to AUSA's
American facilities for repair. Finally, HPI has refused to share access with AUSA to the electronic improvements
incorporated into the "SharpShot" on the basis that they are confidential proprietary information.
66. Refer to Exhibit 17-1. What terms could AUSA have included in its contract with HPI that could have avoided this
legal morass?
67. Refer to Exhibit 17-1. What remedies may AUSA seek against HPI as a result of its conduct? What do these
remedies provide?
