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
B1. In Case 8.1, The Coca-Cola Co. v. The Koke Co. of America, the United States Supreme
Court permitted a Coca Cola competitor to call a product “Koke.”
B2. A famous trademark may be diluted only by the unauthorized use of an identical
mark.
B3. A trademark must be registered to support a trademark infringement action.
B4. A suggestive use of ordinary words may not be trademarked.
B5. A service mark distinguishes products used by the government.
B6. The unauthorized use of another’s mark in a domain name is generally permissible
because the Internet is vast.
B7. A trade name cannot be protected if it is unusual or fanciful.
B8. A license permits the use of intellectual property for certain limited purposes.
B9. A patent applicant must demonstrate that an invention is “commercially practicable”
to receive a patent.
B10. Almost anything is patentable.
B11. In determining whether copyright protection should be granted, the central issue is
the idea that forms the basis for a work.
B12. In determining whether a copyrighted work is infringed under the “fair use” doctrine,
one factor is the effect of the use on the market for the work.
B13. A copy must be exactly the same as the original to infringe a copyright.
B14. Downloading software or music into a computer’s random access memory without
authorization is copyright infringement.
B15. Exchanging pirated, copyrighted works with others is not a crime unless money is
involved.
B16. There are no registration requirements for trade secrets.
B17. Pricing information is not a trade secret.
B18. The theft of trade secrets is not a crime unless a contract is breached.
B19. Anyone who writes a book has copyright protection in every country in the world.
B20. Under the Madrid Protocol, a company can register its trademark in more than one
country with a single application.
MULTIPLE CHOICE QUESTIONS
B1. Beans Coffee & Cocoa Company makes and sells a chocolate-flavored coffee drink
under the name “CoCoCafe.” Darkroast Java, Inc., later markets a similar tasting drink
under the name “KoKoKafe.” This is most likely
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. not infringement.
B2. Bubbly Cola features Sparkly Cola’s trademark without its owner’s permission.
Bubbly’s use of the mark is actionable provided
a. consumers are confused.
b. Bubbly’s use is intentional.
c. Bubbly and Sparkly are not otherwise competitors.
d. Sparkly’s mark is registered.
B3. In 2012, Online Marketing Corporation registers its trademark as provided by federal
law. After the first renewal, this registration
a. is renewable every ten years.
b. is renewable every twenty years.
c. runs for the life of the corporation plus seventy years.
d. runs forever.
B4. Ernie’s Good Eatin’ Cafe uses a distinctive decor, layout, menu, and style of service.
This restaurant’s image and overall appearance is
a. a certification mark.
b. a collective mark.
c. a service mark.
d. trade dress.
B5. Modern Clothing, Inc., and National Denim Corporation use the mark “Made by
Members of the U.S. Textile Workers Union” on the tags of their products to indicate
the participation of the union in the manufacture. Modern and National 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.
B6. Delightful Toys, Inc., makes EZ Goo, a children’s toy. Without Delightful’s consent, Fast
Adhesives Company begins to use “ezgoo” as part of the URL for Fast’s Web site. Fast
claims that no consumer would confuse the Web site with the toy. Fast has
committed
a. copyright infringement.
b. patent infringement.
c. trademark dilution.
d. none of the choices.
B7. Mary Kate Corporation allows Ashley Company to use Mary Kate’s trademark as part
of Ashley’s domain name. This is
a. a license.
b. a likelihood of consumer confusion.
c. cybersquatting.
d. trademark dilution.
B8. Phil invents “PhutureNow,” new Web site design software, and applies for a patent. If
Phil is granted a patent, his invention will be protected
a. for ten years.
b. for twenty years.
c. for the life of the inventor plus seventy years.
d. forever.
B9. Elementals, Inc., makes computer chips identical to Flik Quik Corporation’s patented
chip, except for slight differences in the “look,” without Flik’s permission. This is most
likely
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. none of the choices.
B10. Gas Up, Inc., designs and makes a fuel injection system that copies parts of Hybrid
Corporation’s designs without Hybrid’s permission. This is most likely
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. none of the choices.
B11. In 2011, Sara writes Terror at the Track, a novel about racecar driving. Sara does not
register the work with the appropriate government office. Under federal copyright
law, Sara’s work is protected
a. for ten years.
b. for twenty years.
c. for the life of the author plus seventy years.
d. forever.
B12. The graphics used in Go! a handheld computer game featuring racing cars, is
protected by
a. copyright law.
b. patent law.
c. trademark law.
d. none of the choices.
B13. Garland publishes a book titled Half Pipe, Full Throttle, which includes a chapter from
Ian’s copyrighted book Snowboarder. Garland’s use of the chapter is actionable
provided
a. consumers are confused.
b. Garland’s use is intentional.
c. Garland’s use reproduces Ian’s chapter exactly.
d. Garland does not have Ian’s permission.
B14. Mace copies Nick’s book, Off the Beaten Path, in its entirety and sells it to Parkland
Books, Inc., without Nick’s permission. Parkland publishes it under Mace’s name. This
is
a. copyright infringement.
b. fair use.
c. licensing.
d. protected expression.
B15. Lex reproduces Mina’s copyrighted work without paying royalties. Lex is most likely
excepted from liability for copyright infringement under the “fair use” doctrine if
a. Lex copies the entire work.
b. Lex distributes the copies freely to the public.
c. Lex’s use has no effect on the market for Mina’s work.
d. Lex’s use is for a commercial purpose.
B16. Kay and Leo copy and exchange MP3 music files over the Internet without anyone’s
permission. With respect to songs owned by Natural Recording Company, this is
a. copyright infringement.
b. fair use.
c. licensing.
d. protected expression.
B17. The idea for “On Your Mark,” a computer game featuring racing cars, is protected by
a. copyright law.
b. patent law.
c. trademark law.
d. trade secrets law.
B18. Ross e-mails Super Surfboard Company’s marketing campaign to Summer Sports
Corporation, Super’s competitor, without its permission. This is
a. a sneaky but legal method to shock a business rival.
b. a secretive but lawful way to exact revenge on a supervisor.
c. a simple, legitimate attempt to create a job opportunity.
d. a theft of trade secrets.
B19. Like most successful companies, Paychex, Inc., has trade secrets. The law protects
those secrets if
a. Paychex employees do not divulge the information to outside parties.
b. Paychex employees do not handle confidential documents.
c. Paychex employees never leave the company’s employ.
d. the information is unique and has value to a competitor.
B20. Switch/On Company develops “Instant,” software to speed the display of graphics on
Web sites. “Instant” has the most copyright protection under
a. the Federal Trademark Dilution Act.
b. the Internet Corporation for Assigned Names and Numbers.
c. the Trade-Related Aspects of Intellectual Property Rights agreement.
d. the Uniform Trade Secrets Act.
ESSAY QUESTIONS
B1. For five years, baby-food makers Baby-One Corporation and Baby-B-Mine, Inc., both
use the phrase “Tastes Good” on their labels. Baby-One files a suit against Baby-B-
Mine, claiming trademark infringement. Baby-B-Mine argues that the phrase is not
generally associated with any particular firm, pointing to other companies that use the
same phrase on their labels. In whose favor is the court most likely to rule, and why?
B2. Hawk Corporation begins making and selling motorcycles in 1995 under the mark
“Hawk.” Ten years later, Hawk.com, Inc., a different company selling medical
equipment and supplies, begins to use “hawk” as part of its URL and registers it as a
domain name. Can Hawk Corporation stop Hawk.com’s use of “hawk”? If so, what
must the motorcycle-maker show?