Business Law, 8e (Cheeseman)
Chapter 7 Intellectual Property and Cyber Piracy
1) Intellectual property falls into a category of property known as intangible rights.
2) A competitor can lawfully discover a trade secret by performing reverse engineering.
3) A patent can only be claimed for a limited amount of time.
4) A patent number is given to a patent that is still under consideration.
5) Abstractions and scientific principles cannot be patented unless they are part of the tangible
environment.
6) Improvements to existing machines, processes, or compositions of matter cannot be patented.
7) If an invention is obvious, then it does not qualify for a patent.
8) Utility patents for inventions are valid for the whole of the inventor’s life and 70 years after
that.
9) The patent term begins to run from the date the patent is issued.
10) In the United States, the first person to invent an item or a process is given patent protection
over a later inventor who was first to file a patent application.
11) A patent in the public domain can be purchased by a non-patent holder.
12) Non-patented inventions that have been in public use for over a year can still be patented.
13) Utility patents for inventions are valid for 20 years.
14) A provisional application for a patent gives an inventor three months to prepare a final patent
application.
15) A utility patent is a patent that may be obtained for the ornamental nonfunctional design of
an item.
16) Copyrights are addressed separately by different state laws.
17) Copyright for a work can only be claimed once the U.S. Copyright Office issues it.
18) After the copyright period runs out, the work enters the public domain.
19) Copyrights owned by businesses are protected for 95 years from the year of first publication.
20) The fair use doctrine for copyrights allows certain limited unauthorized use of copyrighted
materials.
21) The fair use doctrine for copyrights does not allow reproduction of a work in a legislative or
judicial proceeding.
22) The No Electronic Theft Act (NET Act) can be invoked for copyright infringements that do
not involve financial gain.
23) A company slogan is an example of a trademark.
24) A trademark is only issued if the registrant proves he has used the mark in commerce.
25) The trademark symbol “TM” is used to indicate a registered mark.
26) The trademark symbol “SM” is used to indicate a mark associated with a product.
27) A party that does not register its brand name has no legal right over it.
28) The trademark symbols “TM” and “SM” can be used with marks that have been not been
registered.
29) A service mark is used to distinguish the product of the holder from those of its competitors.
30) A party has to be a member of an organization to use a certification mark.
31) A collective membership mark identifies different products in the same product line of an
organization.
32) Ordinary words or symbols that have taken on a secondary meaning will qualify as marks.
33) Distinctive marks are ordinary words or symbols that have acquired special meaning with a
product or service.
34) Trademarks that have become generic names are protected under federal trademark law.
35) In a dilution lawsuit, the plaintiff needs to show proof of actual harm suffered in order to win
the lawsuit.
36) Which of the following would be considered to be a part of intellectual property?
A) buildings
B) vehicles
C) business contracts
D) patents
37) Intellectual property falls into a category of property known as ________.
A) moveable property
B) real property
C) tangible property
D) intangible property
38) A ________ is a product formula, pattern, design, compilation of data, customer list, or other
covert business information.
A) copyright
B) patent
C) trade secret
D) trademark
39) A closely guarded formula for a recipe protected by a soft drink manufacturer would be
considered as an example of a ________.
A) copyright
B) patent
C) trademark
D) trade secret
40) If a competitor reverse engineers a trade secret, then the competitor is ________.
A) allowed to use the trade secret but not the original trademark
B) rightfully allowed co-ownership to the trade secret and its original trade mark
C) not allowed to gain commercially from the trade secret
D) obliged to inform the original owner of the trade secret
41) A competitor can lawfully use a rival’s trade secret if the competitor got the trade secret by
means of ________.
A) cross-licensing
B) reverse engineering
C) patenting
D) copyrighting
42) Apart from recovering damages, and recovering profits made by the offender, successful
plaintiffs in a misappropriation of a trade secret case can also ________.
A) obtain the offender’s trademarks or brand name as payoff
B) ask for transfer of any of the offender’s patents to the plaintiff
C) ask to acquire the offender’s trade secrets as payoff
D) obtain an injunction prohibiting the offender from divulging the trade secret
43) What federal statute was enacted by the Congress to protect trade secrets?
A) Economic Espionage Act
B) Sarbanes-Oxley Act
C) Lanham Act
D) Telecommunication Act
44) According to the Economic Espionage Act, ________.
A) persons who have reverse engineered a trade secret can use that trade secret, and the related
trademark
B) the rights to a trade secret will have to be renewed after a specified period of time
C) trade secrets can be shared for a limited amount of time
D) it is a federal crime to steal another’s trade secret
45) A ________ is a grant by the federal government upon the inventor of an invention for the
exclusive right to use, sell, or license the invention for a limited amount of time.
A) copyright
B) patent
C) trade secret
D) trademark
46) How do patent laws help an inventor?
A) by letting the inventor keep his patents indefinitely
B) by helping the inventor meet potential buyers for his patented inventions
C) by providing protection for patented inventions from infringement
D) by helping the inventor guard his patented invention from the public
47) Which of the following is a key function of the U.S. Court of Appeals for the Federal Circuit
with regards to patents?
A) It hears appeals rejected from state courts regarding patent issues.
B) It accepts applications for new patents.
C) It helps to enact new patent laws.
D) It helps to promote uniformity in patent laws.
48) What is a patent number?
A) a number assigned to a patent during application
B) a number assigned to a patent when the patent is pending
C) a number assigned to a patent once the patent is granted
D) a number assigned to a patent when it comes under investigation
49) A ________ is a patent that protects the functionality of a patent.
A) method patent
B) design patent
C) utility patent
D) process patent
50) Which of the following statements is true of patenting a scientific principle?
A) Patent for a scientific principle has to be applied for directly at the U.S. Court of Appeals for
the Federal Circuit.
B) A scientific principle can only be patented if it is a part of the tangible environment.
C) Patent for a scientific principle has to be applied for at the U.S. Patent and Trademark Office.
D) A scientific principle can only be patented once a universal consensus has been reached on its
validity.
51) According to the public use doctrine for patents, ________.
A) a patent will not be granted if the invention was already in public use for one year before
filing application
B) an invention cannot be used in the public domain prior to it being granted a patent
C) the inventor has to test his invention in the public domain, to measure its validity, before
being granted a patent
D) the invention will come into the public domain once its term period has expired
52) When does a patent enter the public domain?
A) when the patent has been challenged in court and found to be an infringement
B) when the patent term period has expired
C) when the government deems that the practical purpose of the invention is universally
applicable and cannot be controlled by one individual or group of people
D) when the invention is either obvious or not a novel one
53) Which of the following statements is true of the patent period in the United States?
A) It follows the first-to-file rule.
B) The patent period for an invention is 17 years.
C) The patent term begins to run from the date the patent application is filed.
D) The patent term begins to run from the date the patent is issued.
54) Which of the following provisions does the American Inventors Protection Act make?
A) It lets the inventor apply for a provisional right application.
B) It allows the inventor to ask for an immediate patent on his invention.
C) It protects the invention from going public before the patent is issued.
D) It does not let non-patent holders to challenge the inventor’s patent.
55) Which of the following types of patents is valid only for a period of 14 years?
A) utility patent
B) process patent
C) business method patent
D) design patent
56) ________ is a legal right that gives the author of qualifying subject matter, and who meets
other requirements established by law, the exclusive right to publish, produce, sell, license, and
distribute the work.
A) Trade secret
B) Trademark
C) Copyright
D) Patent
57) Which of the following is suitable for copyrighting?
A) buildings
B) musical compositions
C) business methods
D) product logos
58) Which of the following is a provision made under the Berne Convention, the international
copyright treaty that the United States is a party to?
A) The treaty makes it mandatory to place the copyright symbol on all copyrighted works.
B) The treaty sets the rules for how copyright can be dealt with when sharing copyrighted work
between governments.
C) The treaty eliminates the need to place the copyright symbol or the word “copyright” on a
copyrighted work.
D) The treaty stipulates the time period a copyright can be retained by the copyright holder
before it enters the public domain.
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59) What is the period of copyright protection provided for individuals under the Sonny Bono
Copyright Term Extension Act of 1998?
A) Individuals are granted 120 years copyright protection from the year of creation of the work.
B) Individuals are granted 95 years copyright protection from the year of first publication of the
work.
C) Individuals are granted copyright protection for their lifetime plus 70 years.
D) Individuals are granted 20 years of copyright protection, after which it has to be renewed for a
fee.
60) What happens to a copyrighted work after it has finished its copyright period with regards to
its ownership?
A) The work will enter the public domain to be used for free.
B) A non-copyright holder can purchase the rights to the work.
C) The copyright can be renewed for a fee by the original creator of the work.
D) The government takes over ownership of the work, and provides it to the public domain for a
61) Which one of the following would constitute a copyright infringement?
A) a brief quotation in a news report
B) use of copyrighted material in a spoof or satire
C) using several clips from a movie in a documentary
D) reproduction by a teacher or student of a small part of the work to illustrate a lesson
62) Which of the following accurately describes the fair use doctrine with reference to
copyrighted material?
A) It stipulates the time period for which a copyright holder can retain his copyright.
B) It permits certain limited use of a copyright by someone other than the copyright holder
without the permission of the copyright holder.
C) It permits use of copyright material by someone other than the copyright holder at a fixed fee.
D) It guides the U.S. Copyright Office in determining what works require copyrights based on
the works’ validity.
63) In terms of copyright law, the use of copyrighted material in a satire or parody would be an
example of ________.
A) copyright infringement
B) application of fair use doctrine
C) piracy
D) copyright sharing
64) Uploading copyrighted material to an unauthorized web site by a non-copyright holder
would count as an act of copyright infringement under the ________.
A) Digital Millennium Copyright Act
B) Berne Convention Act
C) Sonny Bono Copyright Term Extension Act
D) No Electronic Theft Act
65) How is a copyright different from a patent?
A) Copyrights are applied for inventions, while a patent is applied for tangible writings.
B) Patents have a limited term period, while copyrights carry lifelong terms.
C) Patents fall under the federal law, while copyrights fall under state law.
D) Copyrights should be novel, and useful, while patents need not be so.
66) ________ is any trade name, symbol, word, logo, design, or device used to identify and
distinguish goods of a manufacturer or seller or services of a provider from those of other
manufacturers, sellers, or providers.
A) Trade secret
B) Trademark
C) Patent
D) Copyright
67) Which of the following intellectual properties is protected by the Lanham Act?
A) trademark
B) trade secret
C) copyright
D) patent
68) John Crichton had applied for a trademark logo at the U.S. Patent and Trademark Office for
his new startup company, stating that he would use the logo in commerce within the next six
months. But even after six months he had not yet used the logo. Which of the following
recourses does trademark law allow John Crichton so that he can retain his logo till he uses it in
commerce?
A) Apply for a six-month extension for the logo.
B) Change the logo slightly, and reapply for the newly altered logo.
C) Pay a fine so that the trademark gets registered immediately.
D) Cancel the current application and apply for the same logo again.
69) A company logo would be an example of a ________.
A) trade secret
B) patent
C) trademark
D) copyright
70) A ________ mark is mark that confirms that a seller of a product or service has met certain
geographical location requirements, quality standards, material standards, or mode of
manufacturing standards established by the owner of the mark.
A) sellers
B) certification
C) service
D) collective membership
71) A mark that indicates that a person has met the standards set by an organization and is a
member of that organization is known as a(n) ________ mark.
A) collective membership
B) certification
C) service
D) ownership
72) “Just Do It” is a famous tagline used by the Nike Corporation. Which of the following types
of intellectual property would this tagline come under?
A) patent
B) trade secret
C) trademark
D) copyright
73) What is acquiring secondary meaning in trademark terms?
A) when a mark that resembles a mark already registered with the federal PTO is used for a new
product or service
B) when descriptive words are used that have no direct relevance to a product or service
C) when ordinary words establish new meaning due to its attachment to a product or service
D) when a distinctive mark or design is created for a new product or service
74) A ________ is a term for a mark that has become a common term for a product line or type
of service and therefore has lost its trademark protection.
A) service mark
B) orphan work
C) generic name
D) private brand
75) ________ is a type of trademark dilution where a famous mark is linked to products of
inferior quality or is portrayed in an unflattering, immoral, or reprehensible context likely to
evoke negative beliefs about the mark’s owner.
A) Blurring
B) Tarnishment
C) Trolling
D) Astroturfing
76) Give an account of the Economic Espionage Act and its importance in combating cyber
piracy.
77) What is a provisional patent application?
78) Explain the process of copyright registration.
79) Explain what a generic name is with reference to trademarks.
80) Give an account of trademark dilution.