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McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 18: Intellectual Property
True/False Questions
1) T-Bone Steak, a Canadian pop act, just finished writing a new song. The band does not
need to register their copyright ownership in order to protect their copyright.
a. True
b. False
2) Novelty is one of the criteria for copyright protection.
a. True
b. False
3) Only works produced by Canadians, or in Canada, are protected by Canadian copyright
law.
a. True
b. False
4) Unbundling copyright means breaking the copyright down into several discrete rights.
a. True
b. False
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 18: Intellectual Property
5) In Canada, trademark protection is afforded only to registered trademarks.
a. True
b. False
6) Whitemud Toothpaste has been recognized by the Canadian Dental Association as
preventing tooth decay. As a result, its manufacturer put the association’s logo on its tubes
of toothpaste. The correct symbol to place next to the certification mark is ©.
a. True
b. False
7) Distinguishing guises cannot be registered as they can only be protected through the
common law tort of passing-off.
a. True
b. False
8) When a party succeeds in showing that another party has been unjustly enriched, the
appropriate remedy is an injunction.
a. True
b. False
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 18: Intellectual Property
9) A Canadian inventor has up to 15 months to file a patent application in another Paris
Convention member state in order to gain protection in that country.
a. True
b. False
10) A patent can be rejected for public policy reasons, even if all the patent criteria are met.
a. True
b. False
11) For an invention to be considered non-obvious, the general public must not have been
able to come to the solution directly and without difficulty.
a. True
b. False
12) Thinking he has invented a new type of mousetrap, Homer begins to market his
product. Unbeknownst to him, Olga already owns the patent for an identical mousetrap.
Because he did not copy Olga’s design, Homer is not infringing her patent.
a. True
b. False
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 18: Intellectual Property
13) A certification mark is similar to an industrial design, in that both refer to industry
standards.
a. True
b. False
14) For many years, George Blake worked for the Canadian spy agency. The authorities
eventually discovered, however, that he was actually working as a double agent, and that he
was passing government secrets to countries that are unfriendly towards Canada. He was
convicted and sent to prison, but he managed a daring escape and fled out of the country.
Because he is now well-known, and therefore cannot work as a spy, he has written a book
in which he reveals several pieces of information that the Canadian government still
considered secret and enormously important. A court could, among other things, order
George to pay his profits from the book over to the Canadian government.
a. True
b. False
15) A manager at a textile factory suspects his employees are feeding his competitors
information about new textiles he is developing. In order to make them aware that this is
unacceptable, he reminds them all that any information about his textiles is confidential and
must not be disclosed. This is sufficient to ensure that the information is considered
confidential.
a. True
b. False
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 18: Intellectual Property
Multiple Choice Questions
1) Exclusive possession can be distinguished from non-rivalrous possession in that
exclusively possessed assets
a. are synthetic resources while non-rivalrous assets are natural resources.
b. can be more easily controlled than non-rivalrous assets.
c. can be possessed by numerous people at the same time, but the reverse is impossible.
d. tend to be intangible, whereas non-rivalrous assets are not.
e. can only be land.
2) James owns a software development company. He toils day-in and day-out to develop
new ideas. For James, the laws of intellectual property are useful because
a. the ideas James develops may be easily reproduced and thus have natural scarcity of their
own.
b. this legal regime provides him with no incentive to create new ideas.
c. information is not non-rivalrous.
d. by rendering the supply of information inlimited a market for James’s ideas is created.
e. Because ideas are not naturally scarce and because they are non-rivalrous intellectual
property laws create an artificial scarcity and thus an economic market for ideas.
3) Intellectual property law aims to balance the rights of creators against the public interest.
Which of the following statements best exemplifies a benefit to the public interest?
a. Copyright law gives a photographer the exclusive right to reproduce his pictures.
b. Trademark law allows a trademark holder to seek a legal remedy when her trademark is
infringed.
c. Patent bargaining grants an inventor a 20-year monopoly over his invention.
d. Patent law allows a student to build a replica of a patented invention for private research.
e. Trade secrets allow a company to keep a steak recipe secret from the public indefinitely.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 18: Intellectual Property
4) Jaime has been hired as a screenplay writer by a television production company.
Although he is a very creative individual, Jaime has recently started suffering from writer’s
block. In order to unblock himself, Jaime picked up a collection of Shakespeare’s works
and began combing it for ideas. He finally drafted a screenplay about a young couple from
feuding families whose love, though strong, ends in tragedy. Which of the following is
TRUE of Jaime with respect to the authorship requirements of copyright law?
a. Jaime does not meet the requirements because his work is not original.
b. Jaime does not meet the requirements because his work is not novel.
c. Jaime does not meet the requirements because he may be violating the copyright for
Romeo and Juliet.
d. Jaime does not meet the requirements because scripts are not copyrightable works.
e. Jamie has not infringed a copyright as Shakespeare’s works are in the public domain as
his copyright has expired.
5) Which of the following statements about an episode of This Hour has 22 Minutes best
reflects Canadian copyright law?
a. The show is subject to copyright only if it is broadcast live.
b. The show is subject to copyright only if it meets the CRTC’s Canadian Content
regulations.
c. The show is subject to copyright only if it is recorded on a fixed medium.
d. The show is not subject to copyright because broadcasts are not protected by intellectual
property law.
e. The show is not subject to copyright because, once aired, it is considered to be in the
public domain.
6) In Canada, when does a work generally become part of the public domain?
a. upon publication
b. upon registration with the Copyright Board
c. 20 years following the end of the calendar year in which the author dies
d. 50 years following the end of the calendar year in which the author dies
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 18: Intellectual Property
e. as soon as the author dies
7) Which of the following is most closely associated with the notion of moral rights?
a. the right to licence software in Canada
b. the right to publish the lyrics of a song
c. the right to reproduce an essay in a textbook
d. the right to have a photo attributed to its photographer
e. the right to present a piece of art in an exhibition
8) Thierry is a successful artist, known across Canada for his marvelous portraits of famous
Canadians. His work has been exhibited in the National Gallery, and he is beginning to
acquire an international reputation. Recently, Thierry sold one of his paintings to the
GuerillaGallery, not realizing that the owners of the GuerillaGallery had nothing but scorn
for famous artists, insisting that they have sold out their creativity for the sake of the
almighty dollar. The owners promptly took a large black felt marker and added a
moustache to the painting’s subject and drew an arrow poking through its head. When
Thierry discovered the “act of these vandals” and further discovered that these “vandals
were actually exhibiting the work,” he was incensed. Despite his own disdain for lawyers,
Thierry has decided to take legal action. His action ought to take the form of which of the
following?
a. a trademark infringement
b. a moral rights infringement
c. a trademark depreciation claim
d. a passing-off claim
e. a knock-off claim
9) Avery and Bolton are two gifted architecture students at the University of the Outaouais.
Both have been involved in a competition to come up with a design for a particularly
immense structure. In class one day, one of their professors exposes them to a formula
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 18: Intellectual Property
which, when applied in a particular manner to the competition, leads to a new, never-
before-thought-of design for particularly immense structures. Independently, both students
develop virtually identical designs for the competition. Avery is so enthused by his new
discovery that he registers his copyright in the design. Tanner, a slightly lazier student, was
considering entering into the same competition. Snooping around Bolton’s desk one day,
Tanner saw Bolton’s design for the super structure. Tanner copied the design, and sold it to
an architecture firm. Which of the following is TRUE?
a. Tanner is infringing Avery’s copyright but not Bolton’s.
b. Tanner is infringing Bolton’s copyright but not Avery’s.
c. Tanner is infringing Avery’s and Bolton’s copyright.
d. Tanner is infringing Avery’s and Bolton’s moral rights.
e. Tanner is not breaking any copyright laws.
10) While visiting his parents in Toronto, Egon went to a see a local band at a bar. He
purchased the compact disk they had for sale, and took it back to his hometown in Victoria,
BC. Once there, Egon made copies of the compact disk onto tapes and sold them at his
record store for $5 each. Which of the following is TRUE?
a. It is likely that Egon infringed the band’s copyright, because in Canada it is illegal to
make a copy of an audio recording without permission from the artist.
b. It is likely that Egon infringed the band’s copyright, because in Canada it is illegal to
make a copy of an audio recording without permission from SOCAN.
c. It is likely that Egon infringed the band’s copyright, because in Canada it is illegal to
make a copy of an audio recording for commercial purposes.
d. It is unlikely that Egon infringed the band’s copyright because BC and Ontario are
subject to separate copyright regimes.
e. It is unlikely that Egon infringed the band’s copyright because audio recordings are not
protected by copyright.
11) Remi is a musician who is involved with a charitable organization that helps to fight
poverty. In addition to a wide variety of other activities, the charity puts on performances at
schools to teach youngsters about poverty. Remi recently heard an anti-poverty song on the
radio that he began incorporating into his performances. The song was such a hit that he
began incorporating it into his commercial performances at local bars and music halls. At
no point has Remi sought any permission to perform the song. The copyright holder
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 18: Intellectual Property
recently saw one of Remi’s performances on MuchoMusico and has decided to take action.
Which of the following is most accurate?
a. The copyright for the song was infringed at both the commercial performances and at the
school performances.
b. The copyright for the song was infringed at the commercial performances but not at the
school performances.
c. The copyright for the song was infringed at the school performances but not at the
commercial performances.
d. Performance rights are not subject to Canadian copyright law.
e. The copyright for the song was never infringed.
12) Roula, a law professor, recently read a fascinating article about online privacy in
Canadian Science and Technology Weekly, a Canadian magazine. She was so impressed
with the article that she clipped it for future reference. Later in the term, a scandal erupted
at the university when it was discovered that professors’ emails were being surveilled.
Incensed, Roula photocopied the article and slipped a copy of it under every professor’s
door in the faculty. There are 50 professors in the faculty. Which of the following is most
likely TRUE?
a. Roula’s photocopying is considered fair dealing because she did not sell the copies.
b. Roula’s photocopying is considered fair dealing so long as proper attribution was made to
the author and the source.
c. Roula’s photocopying is considered fair dealing because she is a professor, and copying
articles in a university setting is permitted.
d. Roula’s photocopying is considered fair dealing because she was using the article for
educational purposes.
e. Roula’s photocopying may be considered fair dealing, but she will have to defend her
action, taking into account her purpose, the character and amount of her copying, whether
or not she had alternatives to copying, and the effect of her copying on the article in
question.
13) BrainFood is a brand used to promote a concoction of natural ingredients sold in natural
health stores as a supplement to help with memory retention. Recently, MindFood has
come onto the market and has begun selling supplements that, although composed of
different ingredients, are also meant to help with memory loss. The packaging is similar,
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 18: Intellectual Property
and the two products are sold in the same stores. Customers are often confused as to which
product is which is made by which company. Which of the following is most likely TRUE?
a. MindFood is infringing BrainFood’s patent.
b. MindFood is infringing BrainFood’s copyright.
c. MindFood is infringing Brainfood’s trademark.
d. MindFood is immune from suit because it is composed of ingredients not found in
BrainFood.
e. This is fair dealing and free competition—not the subject of intellectual property law.
14) CobeCola develops a line of sugar-free colas and plans to market it towards people on
diets and people who are worried about tooth decay. Which of the following best illustrates
a certification mark that may appear on its can?
a. the name CobeColaLite, with a TM in a circle next to the name
b. the company’s distinctive logo of a bottle spraying cola as if it were a fountain
c. the seal of the governing dental association
d. the bilingual list of ingredients found in on the side of the can
e. the slogan “Try it, it’s diet!” on the can
15) Raoul Newmen has been operating a shoe store, Newmen’s Shoes, in Ottawa for the
past 10 years. His business is registered in Ontario as an Ontario Corporation. His store
sign reads: NEWMEN’S SHOES™. In 1999, a mega-shoe chain from the US,
NewMensShoes, opened up its first Ottawa location. NewMensShoes has been operating in
Canada since 1989, at which time it had registered its Canadian trademark:
NewMensShoes®. NewMensShoes is irritated because it spends a fortune on advertising,
yet people inevitably make the mistake of going to Raoul’s store for shoes. Raoul is irritated
because he had been running his store without problems until the mega-shoe corporation
showed up. NewMensShoes has started an action claiming trademark infringement. Which
of the following is most accurate?
a. There is no trademark infringement.
b. If there is a trademark dispute, the onus will be on Raoul to prove that he held rights to
the name first.
c. If there is a trademark dispute, the onus will be on NewMensShoes to prove that it held
rights to the name first.
d. Raoul is not allowed to put the symbol ™ on his sign.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 18: Intellectual Property
e. Raoul should have put the symbol ® on his sign.
16) Big and Bad Motors has come out with its newest line of SUV. They market the line
under the slogan, “Enjoying the countryside has never been so easy®.” A group of guerrilla
environmentalists, angry about increased exhaust emissions from the SUVs, has started up
a billboard campaign with a photo of an SUV in a diseased forest, surrounded by pollution
and sick animals. Beneath the photo reads the caption “Destroying the countryside has
never been so easy.” The owners of Big and Bad Motors decide to take legal action. Which
of the following claims is Big and Bad most likely to initiate?
a. trademark depreciation
b. passing-off
c. copyright infringement
d. identity theft
e. patent infringement
17) Louisa is a lemonade manufacturer in Ottawa. Since 1985, she has marketed her juice
under the trademark FreshSqueeze. Late last year, a less expensive lemonade began
appearing in grocery stores bearing a remarkably similar label. When examined closely, the
label for the new lemonade actually says Fresh-n-Squeeze, but the ‘n’ is so small that it is
hardly noticeable. The rest of the label, including colours and fonts, appears to be nearly
identical. Louisa is upset because her lemonade sales have fallen drastically since it
appeared on the shelves. Louisa decides to sue for passing-off. If Louisa is successful, what
remedy is not available to her?
a. an injunction to force the other party to stop selling the lemonade under that name
b. an order for an accounting from the other party to pay her the profits earned from Fresh-
n-Squeeze sales
c. an order for damages to reimburse Louisa for lost sales during the period that the two
lemonades were on the shelves
d. an injunction compelling the competitor’s lemonade to removed the shelves permanently
e. imprisonment of the directors of the competitor
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 18: Intellectual Property
18) Woody has invented a method for instantly analyzing perfume, breaking it down into
its component chemicals and reproducing the scent. He is so excited about his invention, he
wants to tell the world. Which of the following examples of disclosure would be potentially
fatal to a patent claim?
a. He tells his wife that he thinks he has finally cracked the scent code.
b. He invites local cosmetics store owners over to see if any of them would be interested in
buying the invention.
c. He presents the invention to his lawyer to ask for advice on how to go about patenting it.
d. He tells his number one employee, on faith of a signed confidentiality agreement.
e. He writes the method on a piece of paper and puts it in his safety deposit box, to which
only he has access.
19) Distraught after having lost his cat, Jimmy Corpini drew up some designs for the “Kitty
Caller Collar.” The collar was designed so that when its wearer strays beyond certain limits,
a signal is sent to a receiver, which pinpoints the location of the collar. In anticipation that
one day he would get another cat, Jimmy printed off a copy of his design and emailed a
copy to himself. A year later, Jimmy moved, and Takashi moved into his home. While
cleaning the house, he came across the design. An engineer by trade, and cat lover by
nature, Takashi copied the designs and took them to the Patent Office, where he applied for
a patent on the collar, which he renamed the “CatchMeow.” In due course, the patent was
granted. Six months later, on the advice of an entrepreneur friend, Jimmy produced 100
Kitty Caller Collars, and began selling them at pet shows. He was unaware that Takashi had
patented his invention. The collars sold quite well, and Jimmy became something of a local
star in the community newspapers. Soon thereafter, Jimmy received a letter from a stern
lawyer informing him that he had to stop selling his Kitty Caller Collars, because by so
doing he was infringing the patent for the CatchMeow. Which of the following is the most
accurate assessment?
a. Jimmy is not liable for patent infringement since he is the true inventor.
b. Jimmy is not liable for patent infringement because his email sufficiently protects his
patent.
c. Jimmy is not liable for patent infringement so long as he can prove that he independently
came up with the design for the kitty collar.
d. Jimmy is liable for patent infringement but will be able to benefit from an exemption,
given that he is the true inventor.
e. Jimmy is liable for patent infringement because Takashi owns the patent.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 18: Intellectual Property
20) Rory Parisien has invented a mesh screen to keep bugs out of his cottage in the
summer. Being a good steward of the environment, Rory had the unique idea of making the
mesh biodegradable, so that when he replaces the mesh, he can just throw it away without
harming the pristine environment around his cottage. There is, however, a problem with the
mesh in that it biodegrades too easily. After a rainstorm or two, the mesh begins to
disintegrate. Moreover, secretions from various bugs can have the same effect. Rory
submits a patent for the biodegradable mesh screen designed to keep out bugs. Which of the
following assessments is most accurate of his application?
a. It is patentable, despite its flaws.
b. It is patentable, so long as it is deemed non-obvious and novel.
c. It is not patentable because there would not be much of a market for the product.
d. It is not patentable because it will not be considered useful.
e. It is not patentable because it will not be considered novel.
21) A-Plus Health has come up with a previously undiscovered method of bonding skin
back together after it has been cut. The new method allows doctors to use a series of tape-
like strips that serve to pull the skin together and hold it in place. An ordinary tape is used
and the novelty is the method of cutting and applying the tape. The benefit to the invention
of this new method of medical treatment, is that by using the tape, stitches are no longer
necessary. Although the company cares about people’s health, it also cares about its bottom
line. It knows that if everyone discovers how the tape works, anyone would be able to
manufacture this medical treatment. Which of the following is TRUE?
a. A-Plus Health can patent the treatment so long as it is novel, ingenious, and useful.
b. A-Plus Health can patent the treatment but will not be able to stop others from
developing similar product lines.
c. The treatment is unpatentable for public policy reasons.
d. The treatment is unpatentable because all health-related inventions are unpatentable.
e. The treatment is unpatentable because it is too abstract.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 18: Intellectual Property
22) Zitsaway is the ultimate miracle cream for teenagers. Using a special combination of
chemicals, Zitsaway is able to clear up the worst cases of acne. Truman, a 16-year-old nerd
with particularly bad acne thought that he had finally found the answer to all his social
problems when he began using the cream. Although the cream worked like a charm, at $25
a bottle the cream took up most of his allowance. Being the nerd that he was, Truman took
the cream to his chemistry lab where he and his teacher managed to identify all the
components of the cream. Fortunately, all the components were easily procured and easily
combined. Which of the following is TRUE?
a. Truman may make the cream for personal use. However, he may be infringing the patent
as his personal use is not for research but for the patent’s commercial purpose.
b. Truman may sell the cream to kids at school, so long as he does not mass-market the
product.
c. Truman must get permission from the patent owner of Zitsaway before making the cream
for personal use.
d. Truman must buy or license the patent for Zitsaway before manufacturing any for
personal use.
e. Truman must pay the patent owners of Zitsaway royalties before making the cream for
personal use.
23) Accounting for profits might be an appropriate award in which of the following cases?
a. A company’s sales dip a year after a competitor develops a similar line of product.
b. An Internet service provider loses some of its customer base after Internet cable is made
available in a community.
c. The holder of patent on a special electric car battery is caught off-guard when a
competitor begins successfully selling unlicenced identical car batteries.
d. A company known for interfering with patents disassembles a patented electric
toothbrush to discover how the toothbrush works.
e. Someone publishes a new edition of Shakespeare’s collected works.
24) Of the following, which are only protected if they are registered?
a. licensing rights
b. company logos
c. trademarks
d. catchy slogans
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 18: Intellectual Property
e. industrial designs
25) Which of the following is an example of a registrable industrial design?
a. the maple leaf shape of a maple-flavoured cookie
b. the green colour of glass used to bottle lemon-lime sodas
c. the patent for an industrial size dishwasher
d. the Canadian Dental Association’s mark on a tube of toothpaste
e. the secret recipe for a new brand of chili
26) The capital letter D inside of a circle signifies that a product is
a. deemed to be patented.
b. a registered industrial design.
c. under development.
d. in the public domain.
e. subject to a designated code of confidentiality.
27) Which of the following statements about trade secrets is true?
a. Disgruntled employees are unable to register patents for the subject matter of trade
secrets.
b. Competitors who independently create the subject matter of your trade secret are unable
to patent their ideas.
c. Trade secrets can help keep an information-based asset a secret until it can be used or
sold.
d. Trade secrets cannot be patented at a later date because they violate the disclosure rules
of patent law.
e. Trade secrets can be registered at the Trade Secrets Bureau.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 18: Intellectual Property
28) Achmed has invented a mechanism for building barbwire fences. It consists of a
motorized machine that stretches the barbwire between two fence posts. It then wraps the
barbwire around the post, ensuring that the fence is stable. The beauty of the mechanism is
that at no point must a person touch the wire, thus drastically reducing the fear of injury.
However, there are still a few glitches in the system. For example, the machine stretches the
wire too much, causing the wire to snap before the fence is complete, and flail about until
the operator turns off the machine. This increases the potential safety hazard, as the broken
barbwire swings about dangerously until the machine is turned off. Additionally, if the
operator does not turn it off in time, the loose barbwire ends up damaging the machine.
Achmed is convinced that with a bit of tinkering, he can get it working better. Which of the
following is TRUE of Achmed’s invention?
a. It is not patentable but may qualify as an industrial design.
b. It is not patentable but may be protected as a trade secret.
c. It is patentable so long as it has not already been patented by someone else.
d. It is patentable so long as within 60 days of filing the patent application the design is
fixed to avoid all the glitches.
e. It is patentable so long as Achmed has not told others of its existence.
29) Which of the following is TRUE of a breach of confidence?
a. It is morally wrong but not legally enforceable.
b. It requires that the information be known by fewer than 50 people.
c. It occurs when a patent is infringed.
d. It can only be enforced if it results in direct financial loss.
e. It is legally wrong if the confidential information is disclosed without authorization and
there was a misuse or unauthorized use of the information.
30) Hector Journale is the publisher of a major national newspaper. Following a string of
political scandals, Hector comes up with an excellent idea for a weeklong series of articles
on the moral shortcomings of politicians before they entered politics. Hector is worried that
if his competitor, Linda Laprinte, catches wind of the series, she will scoop him. In order to
protect his idea, Hector could do which of the following?
