Chapter 8
Intellectual Property
and Internet Law
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
A1. A beverage company that competes with Coca-Cola Company cannot call its products
“Koke.”
A2. State and federal governments provide for the registration of trademarks.
A3. Trademark dilution requires proof that consumers are likely to be confused by the
unauthorized use of a mark.
A4. An applicant cannot register a trademark on the basis of an intention to use the mark
in commerce.
A5. An arbitrary use of ordinary words may not be trademarked.
A6. A personal name is protected under trademark law if it acquires a secondary meaning.
A7. A generic term is not protected under trademark law unless it acquires a secondary
meaning.
A8. Trade dress has the same legal protection as trademarks.
A9. A certification mark distinguishes products approved, or “certified,” by the
government.
A10. A trade name cannot be registered with the federal government unless it is also a
trademark or a service mark.
A11. Patent protection begins on the date that a patent is issued.
A12. Patent infringement occurs only if an invention is copied in its entirety.
A13. Copyright protection is automatic—registration is not required.
A14. It is possible to copyright an idea.
A15. A person can reproduce copyrighted material for purposes such as teaching, including
multiple copies for classroom use, without paying royalties.
A16. Exchanging pirated, copyrighted works with others is not infringement unless money
is involved.
A17. A marketing technique can be a trade secret.
A18. International copyright protection is automatic—even in nations that have not signed
international agreements relating to intellectual property rights.
A19. Theft of confidential data by industrial espionage is a theft of trade secrets.
A20. International copyright protection exists for computer programs as “intellectual
creations.”
MULTIPLE CHOICE QUESTIONS
A1. Pola develops a new espresso machine, which she names “Sure Shot.” She also writes
the operating manual. Pola can obtain trademark protection for
a. the espresso machine.
b. the “newness” of the espresso machine.
c. the name.
d. the operating manual.
A2. Sincere Forms, Inc., uses, in its ads, a trademark that is similar, but not identical, to
the famous, registered mark of Desired Objects, Inc. Sincere’s unauthorized use of the
mark constitutes trademark dilution provided
a. consumers are confused.
b. Sincere and Desired are competitors.
c. Sincere’s use is intentional.
d. Sincere’s use lessens the value of Desired’s mark.
A3. Standard Corporation can not claim a trademark in the phrase “Quality Is Standard” if
the phrase
a. has a secondary meaning.
b. is descriptive.
c. is generic.
d. is memorable.
A4. Excel Goods, Inc., and Finest Products Corporation use the mark “Good Housekeeping
Seal of Approval” to certify the quality of their products. Excel and Finest are not in
business together and do not own this mark. The mark is
a. a certification mark.
b. a collective mark.
c. a service mark.
d. trade dress.
A5. USA Transport Company uses a mark associated with its name to distinguish its
services from those of other transport firms. The mark is
a. a certification mark.
b. a collective mark.
c. a service mark.
d. trade dress.
A6. Trevor’s business is The Spicy Chocolatier Café chain. “The Spicy Chocolatier Café” is
a. a certification mark.
b. a collective mark.
c. a service mark.
d. a trade name.
A7. E-Shopping Corporation inserts Fiesta Mall, Inc.’s trademark as a meta tag in E–
Shopping’s Web site’s key-words field without Fiesta’s permission in a manner that
suggests Fiesta authorized the use. This is
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. none of the choices.
A8. Ric designs a new computer hard drive, which he names “Sci Phi.” He also writes the
operating manual to be included with each final product. Ric could obtain patent
protection for
a. the hard drive only.
b. the name only.
c. the operating manual only.
d. the hard drive, the name, and the operating manual.
A9. Sights Unseen, Inc., (SUI) sells scopes with distinctively designed and made lenses and
mirrors to scientists. Telescopes, Etc. Corporation later begins to sell scopes with
identical set-ups of lenses and mirrors, without SUI’s permission, to consumers. This is
most likely
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. none of the choices.
A10. RiteMade Machinery, Inc., designs, makes, and sells a drill press. Steel Equipment
Company copies the design without RiteMade’s permission. Steel’s conduct is
actionable provided
a. consumers are confused.
b. Steel’s conduct is intentional.
c. Steel’s conduct reduces the value of RiteMade’s design.
d. RiteMade’s design is patented.
A11. Felicia invents a new valve to cap undersea oil spills, which she names “Great Catch.”
She also writes the installation manual to be included with each valve. Felicia could
obtain copyright protection for
a. the valve.
b. the “newness” of the valve.
c. the name.
d. the installation manual.
A12. Cathy uses, on her new recording Drive By, the melody of a song written by Ed,
without Ed’s permission. This is
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. none of the choices.
A13. Donna makes and distributes copies of Every Good Boy Does Fine, a movie
copyrighted by Great Films Corporation, without Great Films’ permission. Donna may
be liable for
a. damages, fines, or imprisonment.
b. damages only.
c. fines or imprisonment only.
d. nothing.
A14. Ellen publishes a book titled First Place, which includes a chapter from Frank’s
copyrighted book Great NASCAR Drivers without his permission. Ellen’s use of the
chapter is actionable
a. only if consumers are confused.
b. only if Ellen and Frank are competitors.
c. only if consumers are confused and Ellen and Frank are competitors.
d. regardless of whether consumers are confused or Ellen and Frank are
competitors.
A15. Kim uses, on her new recording Let’s Go, the guitar solo from Malcolm’s digital sound
recording without his permission. This is
a. copyright infringement.
b. fair use.
c. licensing.
d. protected expression.
A16. Rockstar Software, Inc., develops a new series of performance-related video games.
The games are most likely protected by
a. copyright law.
b. patent law.
c. trademark law.
d. trade secrets law.
A17. Diamond Financial Planners employs Elle, Diamond’s most productive performer. Elle,
however, dissatisfied with the commission structure, quits to work for Feldstar
Investments, Inc. Elle takes her list of Diamond clients to induce them to switch to
Feldstar. Laws related to trade secrets cover
a. Diamond’s list of clients.
b. Elle’s performance methods.
c. Feldstar’s commission structure.
d. none of the choices.
A18. The process behind the production of “Numb3rs,” a suite of business accounting and
inventory software, is protected by
a. copyright law.
b. patent law.
c. trademark law.
d. trade secrets law.
A19. Canada and the United States are signatories of the Berne Convention. Doug, a citizen
of Canada, publishes a book first in Canada and then in the United States. Doug’s
copyright must be recognized by
a. Canada only.
b. Canada and the United States only.
c. all of the signatories of the Berne Convention.
d. none of the choices.
A20. Symphony, Inc., a U.S. jewelry designer and maker, files a suit against Kawa, Ltd., a
Japanese jewelry maker, for the infringement of intellectual property rights under
Japan’s national laws. Under the TRIPS agreement, Symphony is entitled to receive
a. better treatment than Kawa.
b. the same treatment as Kawa.
c. worse treatment than Kawa.
d. nothing.
ESSAY QUESTIONS
A1. Max plots a new Batman adventure and carefully and skillfully imitates the art of DC
Comics to create an authentic-looking Batman comic. Max is not affiliated with the
owners of the copyright to Batman. Can Max publish the comic without infringing on
the owners’ copyright?
A2. College Copy Shop (CCS) compiles, copies, and sells reading materials to students on
the instructions of their professors, who indicate which parts of which publications
should be included. These include texts published by Deep Topics, Inc. CCS does not
obtain the permission of Deep Topics, or any of the other original publishers of the
copied materials, and does not pay royalties on the sales of the compilations. Deep
Topics and others file a suit against CCS, alleging infringement of the plaintiffs’
intellectual property rights. Which type of intellectual property is involved in this
situation? What is CCS’s likely defense? How is a court most likely to rule? Explain.