1. After a patent expires, the invention is dedicated to the public.
a.
True
b.
False
2. A copyright is a government-granted right to exclude others from making, using, or selling an invention.
a.
True
b.
False
False
1
Easy
11-2 Copyrights
3. Intellectual property is any product or result of a mental process that is given legal protection against unauthorized use.
a.
True
b.
False
True
1
Moderate
Introduction
4. Copyright protection does not extend to derivative works.
a.
True
b.
False
False
1
Moderate
11-2 Copyrights
5. A patent holder must personally make use of the invention.
a.
True
True
1
Easy
11-1 Patents
b.
False
6. The patent practice of other countries is often different from that of the U.S.
a.
True
b.
False
True
1
Moderate
7. An invention is “novel” if it is explained in book format.
a.
True
b.
False
False
1
Moderate
111a Requirements for Utility Patent
8. A trademark does not necessarily reveal the product’s manufacturer.
a.
True
b.
False
True
1
Easy
11-4 Trademarks
9. The packaging or dressing of a product may be protected under the trademark laws as trade dress.
a.
True
b.
False
True
False
1
Easy
11-1 Patents
10. Trade secrets are protected for an indefinite time.
a.
True
b.
False
True
1
Easy
11-7 Trade Secrets
11. The U.S. Supreme Court ruled that living organisms can be patented if they are human-made.
a.
True
b.
False
True
1
Moderate
111a Requirements for Utility Patents
12. In the famous case of Sony Corp. of America v. Universal City Studios, Inc. (1984), the U.S. Supreme Court ruled that
the sale of copying equipment does not constitute contributory infringement, provided that it has substantial non
infringing uses.
a.
True
b.
False
13. As a matter of law, a combination of two inventions cannot be considered nonobvious.
a.
True
b.
False
False
1
1
Moderate
11-6 Trade Dress
14. The Semiconductor Chip Protection Act of 1984 created a highly specialized form of intellectual property, called a(n):
a.
registered service mask.
b.
registered mask work.
c.
registered certification mask.
d.
registered trade mask.
b
1
Moderate
DISC: – AICPA: BB-Legal
11-3 Registered Mask Works
Blooms: Comprehension
15. An invention will be denied patent protection if its novelty merely represents an obvious development over existing
technology, also referred to as prior art.
a.
True
b.
False
True
1
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
111a Requirements for Utility Patents
Blooms: Comprehension
16. Constructive abandonment of a trademark can occur through the trademark lapsing into genericism.
a.
True
b.
False
True
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
114e Loss of Trademark Rights
Blooms: Comprehension
17. Once the Patent and Trademark Office issues a patent, a court may not find it invalid.
a.
True
b.
False
False
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
111a Requirements for Utility Patents
Blooms: Comprehension
18. Terms that were once enforceable trademarks may become generic and thereby not protected.
a.
True
b.
False
True
1
Moderate
114c Varying Distinctiveness of Trademarks
19. Service marks are a form of trademarks.
a.
True
b.
False
False
1
Moderate
114b Other Marks
20. Susan may get a patent on the new type of rose she developed through asexual reproduction.
a.
True
b.
False
True
1
Moderate
111c Plant Patents
21. The Uniform Trade Secrets Act is a federal law.
a.
True
b.
False
False
1
Easy
Moderate
111d Obtaining Patent Protection
22. Arbitrary marks are real words whose ordinary meaning has something to do with the color or shape of the
trademarked product.
a.
True
b.
False
False
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
114c Varying Distinctiveness of Trademarks
Blooms: Comprehension
23. Which of the following are defenses to patent-infringement claims?
a.
Noninfringement, invalidity of the patent, misuse of the patent, and innocent infringement
b.
Noninfringement, invalidity of the patent, fair use, and innocent infringement
c.
Noninfringement, fair use, misuse of the patent, and innocent infringement
d.
Fair use, misuse of the patent, innocent infringement, and illegality of the patent
a
1
United States – BUSBROG: – Analytic
24. Which of the following is true regarding remedies for patent infringement?
a.
The patent holder may seek preliminary and permanent injunctive relief and damages, as well as court costs
and attorneys’ fees.
b.
The patent holder may seek preliminary and permanent injunctive relief and damages, as well as court costs,
but attorneys’ fees are unavailable.
c.
The patent holder may seek permanent injunctive relief and damages, as well as court costs and attorneys’ fees,
but preliminary injunctive relief is unavailable.
d.
The patent holder may seek damages, as well as court costs and attorneys’ fees, but injunctive relief is
unavailable.
a
1
Challenging
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
111h Remedies for Patent Infringement
Blooms: Analysis
25. Which of the following is not a type of U.S. patent?
a.
Plant patent
b.
Design patent
c.
Service patent
d.
Utility patent
DISC: – AICPA: BB-Legal
117b Uniform Trade Secrets Act
Blooms: Comprehension
26. The Bilski v. Kappos case referenced in the text, involved a question of whether a business process explaining how
buyers and sellers of commodities in the energy market can use hedging to protect against price fluctuations is patentable.
How did the U.S. Supreme Court rule?
a.
The court ruled that the claimed invention was a patent-eligible process.
b.
The court ruled that the claimed invention was not a patent-eligible process because it was an abstract idea.
c.
The court ruled that the claimed invention was not a patent-eligible process because under federal patent law,
no business methods may be the subject of patents.
d.
The court ruled that more information was needed regarding expected profits before a determination could be
made as to patentability.
b
1
Challenging
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
111a Requirements for Utility Patents
Blooms: Comprehension
27. A(n) __________ mark is a coined term having no prior meaning until used as a trademark in connection with a
particular product.
a.
arbitrary
b.
suggestive
c.
descriptive
d.
fanciful
d
1
Challenging
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
114c The Varying Distinctiveness of Trademarks
Blooms: Comprehension
28. A(n) __________ mark is a real word whose ordinary meaning has nothing to do with a trademarked product.
a.
arbitrary
b.
suggestive
c.
descriptive
d.
fanciful
a
1
Moderate
c
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
11-1 Patents
Blooms: Knowledge
29. Which of the following is true regarding patent misuse?
a.
When a patent misuse occurs, the offender permanently loses the right to patent protection on the patent at
issue.
b.
Requiring a licensee to purchase nonpatentable products as a condition to obtaining a license for patented
products is patent misuse.
c.
The patent holder is barred from recovering for any infringement of its patent during the period of misuse.
d.
There is no such concept as patent misuse in the U.S.
c
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
111g Defenses to Patent Infringement
Blooms: Application
30. What type of efficiency exists when competition among individual producers drives all but the lowest-cost producers
of goods or services out of the market?
a.
Allocative
b.
Economic
c.
Strategic
d.
Productive
d
1
Challenging
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
Economic Perspective: Intellectual Property Rights and Incentives
Blooms: Application
31. The federal trademark act is known as the __________ Act.
a.
Trademark
b.
Signal
c.
Smith
d.
Lanham
d
1
Easy
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
114a Ownership and Scope of Trademark Protection
Blooms: Comprehension
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
114c Varying Distinctiveness of Trademarks
Blooms: Comprehension
32. The term, “Holiday Inn” has a(n) __________, because the public associates the term with a particular provider of
hotel services.
a.
suggestive mark
b.
service mark
c.
secondary meaning
d.
certification mark
33. The defense of __________ is available when a trademark user truthfully uses a competitor’s mark to identify the
competitor’s product for the user’s own purposes.
a.
nominative use
b.
competitive use
c.
genericity
d.
fair use
a
1
United States – BUSBROG: – Analytic
34. In CASE 11.1 Association for Molecular Pathology v. Myriad Genetics, Inc. (2013), the U.S. Supreme Court held that
under U.S. Patent Laws isolated DNA is:
a.
not eligible for patent protection because it is naturally occurring.
b.
eligible for patent protection because it is man-made.
c.
eligible for patent protection because it is naturally occurring.
d.
not eligible for patent protection because it is man-made.
a
1
Challenging
DISC: – AICPA: BB-Legal
111a Requirements for Utility Patents
Blooms: Analysis
35. What are the four basic types of intellectual property?
a.
Patents, copyrights, trademarks, and trade secrets
b.
Patents, copyrights, certifications, and trademarks
c.
Copyrights, certifications, trademarks, and original works
d.
Inventions, certifications, original works, and patents
a
1
Easy
c
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
114c Varying Distinctiveness of Trademarks
Blooms: Application
36. The practice of __________ occurs when an individual registers a famous trademark as an Internet domain name and
then offer to sell the domain name to the trademark owner for a ransom.
a.
Internet trademark abuse
b.
domain misuse
c.
domain / trademark harassment
d.
cybersquatting
d
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
11-5 Domain Names and Cybersquatting
Blooms: Comprehension
37. Under the __________ doctrine, under certain circumstances, a person may infringe the copyright owner’s exclusive
rights without liability in the course of such activities as news reporting, education, scholarship, or research.
a.
fair use
b.
education use
c.
new use
d.
critical use
a
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
112g Defenses to Copyright Infringement
Blooms: Application
38. An example of a fanciful trademark is:
a.
Kodak.
b.
Shell.
c.
Tide.
d.
Camel.
a
1
Moderate
United States – BUSPROG: – ANALYTIC
114c Varying Distinctiveness of Trademarks
Blooms: Comprehension
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
Introduction
Blooms: Knowledge
39. The duration of a copyright granted to a known individual, not a work done for hire, will be:
a.
the life of the author plus 100 years.
b.
the life of the author plus 70 years.
c.
75 years after the first publication.
d.
100 years after the creation of the work.
40. The term __________ is used to describe a nonpracticing entity that purchases one or more patents with the intent to
enforce the patents against infringers, rather than to manufacture a patented product or supply a patented service.
a.
patent troll
b.
illegal user
c.
patent hoarder
d.
patent stasher
a
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
111h Remedies for Patent Infringement
Blooms: Comprehension
41. Which of the following is an example of an arbitrary trademark?
a.
Camel
b.
Kodak
c.
Exxon
d.
Clorox
a
1
Moderate
United States – BUSPROG: – ANALYTIC
DISC: – AICPA: BB-Legal
114c Varying Distinctiveness of Trademarks
Blooms: Comprehension
42. A design dictated by function may be protected by a(n) __________ patent.
a.
equivalents
b.
design
c.
utility
d.
useful articles
c
b
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
112d Term of Copyright Protection
Blooms: Comprehension
43. The __________ doctrine provides that copyright protection does not extend to the useful application of an idea.
a.
useful article
b.
utility
c.
equivalents
d.
design
a
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
112c Useful Article Doctrine
Blooms: Application
44. Which of the following is NOT a part of a patent application?
a.
The specifications
b.
The claims
c.
The drawings
d.
The declaration of prior art
d
1
Challenging
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
111a Requirements for Utility Patents
Blooms: Comprehension
45. Some courts have recognized a form of employee trade secret misappropriate under the __________ Doctrine, which
recognizes that former employees who go to work for a competitor in a similar capacity will eventually disclose trade
secrets gained in their former employment.
a.
Registered Trademark Secret
b.
Uniform Trade Secret
c.
Inevitable Disclosure
d.
Constructive Abandonment
c
1
DISC: – AICPA: BB-Legal
117f Misappropriation of Trade Secrets
Blooms: Application
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
111a Requirements for Utility Patents
Blooms: Comprehension
46. When may a defendant be held liable for vicarious copyright liability?
a.
So long as it can be shown that the defendant has the right and ability to control the infringer’s acts.
b.
So long as it can be shown that the defendant receives a direct financial benefit from the infringement.
c.
When he defendant has the right and ability to control the infringer’s acts and receives a direct financial benefit
from the infringement.
d.
Never because vicarious copyright liability is not recognized.
47. A __________ is used in conjunction with services.
a.
certification mark
b.
trademark
c.
service mark
d.
trade name
c
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
114b Other Marks
Blooms: Comprehension
48. An otherwise copyrightable work that is prepared by an employee within the scope of employment, is called a(n)
__________ and belongs to the __________.
a.
a work for hire, employee
b.
derivative work, employee
c.
a work for hire, employer
d.
a derivative work, employer
c
1
Challenging
United States – BUSPROG – Analytic
DISC: – AICPA: BB-Legal
112a Ownership and Scope of Copyright Protection
Blooms: Analysis
49. Which of the following is considered in determining whether use of copyrighted material constitutes fair use?
a.
Only the amount of the work used.
b.
(1) The amount of the work used, and (2) the economic effect of the use on the copyright owner.
c.
(1) The economic effect of the use on the copyright owner, (2) the nature of the work used, and (3) the amount
c
1
Challenging
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
112f Types of Copyright Infringement
Blooms: Comprehension
of the work used.
d.
(1) The purpose and character of the use, (2) the economic effect of the use on the copyright owner, (3) the
nature of the work used, and (4) the amount of the work used.
50. In CASE 11.2 American Broadcasting Companies, Inc. v. Aereo, Inc. (2014), the U.S. Supreme Court ruled for
American Broadcasting Companies, finding that Aereo had:
a.
engaged in direct copyright infringement when it publicly performed ABC’s live broadcasts.
b.
engaged in contributory copyright infringement when it publicly performed ABC’s live broadcasts.
c.
engaged in vicarious copyright infringement when it publicly performed ABC’s live broadcasts.
d.
violated the first sale doctrine by publicly performing ABC’s live broadcasts.
51. The CASE 11.3 Kirtsaeng v. John Wiley & Sons, Inc. (2013) involves the __________ which holds that once a
copyright owner sells a copyrighted product, the owner cannot prevent its resale or transfer to others.
a.
Contributory Copyright Doctrine
b.
Copyright Misuse Doctrine
c.
Fair Use Doctrine
d.
First Sale Doctrine
d
1
DISC: – AICPA: BB-Legal
112g Defenses to Copyright Infringement
Blooms: Analysis
52. Which of the following is NOT true regarding current U.S. copyright law?
a.
The material must be sufficiently original.
b.
Protection is automatic.
c.
Use of a copyright notice is required.
d.
Registration is not required.
1
United States – BUSBROG: – Analytic
d
1
DISC: – AICPA: BB-Legal
112g Defenses to Copyright Infringement
Blooms: Comprehension
53. When an idea and its expression are inseparable, the __________ doctrine dictates that the expression is not
copyrightable.
a.
merger
b.
genericism
c.
prior art
d.
protected expression
a
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
112b Expression Versus Idea
Blooms: Application
54. Which of the following is true regarding how damages may be awarded in a patent infringement case?
a.
Damages may be awarded based on (1) the patent holder’s lost profits, (2) the infringer’s profits, or (3) a
reasonable royalty for the infringer’s use of the invention.
b.
Damages may only be awarded based on the patent holder’s lost profits.
c.
Damages may only be awarded based on the infringer’s profits.
d.
Damages may only be awarded based on a reasonable royalty for the infringer’s use of the invention.
a
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
111h Remedies for Patent Infringement
Blooms: Comprehension
55. A defendant is not liable for trademark infringement if its use is __________ use, meaning that it uses the mark to talk
about the mark itself.
a.
comparative
b.
transformative
c.
unclear
d.
nominative
d
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
114f Trademark Infringement
Blooms: Application
DISC: – AICPA: BB-Legal
112e Copyright Formalities: Registration and Notice
Blooms: Comprehension
56. A __________ placed on a product indicates that the product has met the certifier’s standards of safety or quality.
a.
certification mark
b.
trademark
c.
service mark
d.
trade name
57. A descriptive mark that is initially unavailable for protection can still become protectable if it acquires __________
meaning.
a.
descriptive
b.
geographic
c.
personal
d.
secondary
d
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
Blooms: Comprehension
Fact Pattern 11-1
Samantha develops a new type of comb that effectively removes loose dog hair and eliminates problems with shedding.
Samantha had never seen such a comb on the market and was very surprised when she received notification that she was
being sued for patent infringement by the holder of a patent on a similar type of comb. Samantha investigates and
determines that the earlier patent was valid. Her friend Harry, a first year law student told her that she could not be guilty
of patent infringement because she was not aware of the earlier patent, and that she should proceed to at least sell the rest
of her inventory.
58. Refer to Fact Pattern 111. Assuming the validity of the earlier patent, which of the following is true regarding Harry’s
statement that Samantha could not be guilty of patent infringement because she was unaware of the earlier patent when
she began marketing her combs?
a.
Harry was correct.
b.
Harry was incorrect, and Samantha can be held liable for direct patent infringement.
c.
Harry was incorrect, and Samantha can be held liable for indirect patent infringement.
d.
Harry was incorrect, and Samantha can be held liable for contributory patent infringement.
b
1
Challenging
a
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
114b Other Marks
Blooms: Comprehension
59. Refer to Fact Pattern 111. Assuming the validity of the earlier patent, which of the following is true regarding
Samantha’s rights to legally continue selling the combs?
a.
She should stop selling the combs immediately.
b.
She may continue selling the combs until she sells the rest of her inventory, but she must then stop.
c.
Since she was not aware of the earlier patent when she started marketing her combs, she can continue to sell
the combs indefinitely without providing any royalties to the holder of the initial patent.
d.
Since she was not aware of the earlier patent when she started marketing her combs, she can continue to sell
the combs indefinitely, but she must pay reasonable royalties to the holder of the initial patent.
1
United States – BUSPROG: – ANALYTIC
DISC: – AICPA: BB-Legal
111f Types of Patent Infringement
Blooms: Analysis
Fact Pattern 11-2
Professor Peter enjoys using a small manual containing information on employment laws in his business law class. The
manual costs $100 and is published by We Publish book publishers. Because Professor Peter wants to save his students
some money, he copies the manual and has ABC Copy Store make copies for students. Students are required to purchase
the copies directly from the copy store. Professor Prudence, who dislikes Peter because she believes he blocked her tenure
application, hears about the deal and notifies the publishing company. The publishing company demands that the process
be stopped and prepares to seek damages.
60. Refer to Fact Pattern 112. Can Professor Peter be found guilty of copyright infringement?
a.
No, he was engaged in fair use because of his involvement in education.
b.
No, because he did not do the actual copying.
c.
No, because he did not make a profit.
d.
It is likely that he would be found guilty of copyright infringement particularly since he arranged for copying
of the entire manual, not limited sections.
d
1
United States – BUSPROG: – ANALYTIC
DISC: – AICPA: BB-Legal
112g Defenses to Copyright Infringement
Blooms: Analysis
61. Refer to Fact Pattern 112. Can Copy Store be found guilty of copyright infringement?
a.
No, because the use was for education and would be considered a fair use.
United States – BUSPROG: – ANALYTIC
DISC: – AICPA: BB-Legal
111f Types of Patent Infringement
Blooms: Analysis
b.
No, because Professor Peter ordered the copying, and the store was simply following directions.
c.
Yes, copy stores can be found liable for copyright infringement for copying without obtaining permission.
d.
Yes, but only if the store failed to have Professor Peter agree to indemnify it for any alleged copyright
infringement.
62. Priscilla bought a new CD with her favorite Christmas music on it. She promptly proceeded to copy it for 15 of her
best friends, including Brenda, and provided it free of charge. Unknown to Priscilla, Brenda’s brother, Chris, was a
member of the band. When he found out how Brenda got the disk, he angrily called Priscilla and accused her of copyright
infringement. Is he correct that Priscilla is guilty of copyright infringement?
a.
It is unlikely that Priscilla is guilty of copyright infringement because of the fair use doctrine.
b.
It is unlikely that Priscilla is guilty of copyright infringement because of the merger doctrine.
c.
It is unlikely that Priscilla is guilty of copyright infringement because she did not charge her friends for the
copies and did not mass produce the CD.
d.
It is likely that Priscilla would be found guilty of copyright infringement.
d
1
United States – BUSPROG: – ANALYTIC
63. Mandy purchased a business law book and used it during her business law class. She later loaned the book to Steven,
and then to Christen. Another student accused her of copyright violation and threatened to report her to the book publisher
and also to her school’s ethics board. Did Mandy violate the copyright laws?
a.
Yes.
b.
No, because her loans would be covered by the fair use doctrine.
c.
No, because her loans would be covered under the first sale doctrine.
d.
No, because her loans would be covered under the equivalency doctrine
c
1
Challenging
United States – BUSPROG: – ANALYTIC
DISC: – AICPA: BB-Legal
112g Defenses to Copyright Infringement
Blooms: Analysis
64. Discuss in detail common law rights, if any, in a trademark in the U.S.
c
1
United States – BUSPROG: – ANALYTIC
DISC: – AICPA: BB-Legal
112g Defenses to Copyright Infringement
Blooms: Analysis
65. Set forth the requirements an invention must meet in order to be eligible for a utility patent as well as the requirements
for patentable subject matter.
66. McBurger has just developed a new method of preparing its products that greatly reduces the fat content and other
medical problems associated with fast food. Although still in the developmental phase, McBurger has been very careful
not to release any information regarding the process. The information is constantly under lock and key. Jerry, a
competitor’s employee, took a public tour of McBurger University to evaluate going to work for McBurger. While on the
tour, he accidentally saw the process being conducted in a small laboratory that was visible to everyone, but not part of the
tour. Jerry realized that probably no one else would recognize the process, and said nothing. Jerry was able to duplicate
McBurger’s process, and is now about to be promoted to vice-president of his company. Does McBurger have a claim
against Jerry and his employer? What is the likely outcome? Discuss fully.
67. Perry is a playwright. He wrote and produced an off-Broadway play about the life of Colonel Sanders, “Just a Drop in
the Bucket,” that closed after the third performance. Later that same year, on vacation in Los Angeles, he went to see a
new production called “Fry It Anyway.” Perry was appalled to discover that the play was substantially similar to his own.
“Fry It Anyway” becomes a big hit. What protections are available for Perry? What defenses are available against any
claims Perry might make? What additional protections would be available had Perry registered under the federal
Copyright Act? Discuss fully.
68. Jill invented a new type of device to control dog barking without harming the dog. A month later, Sam independently
invented an almost identical type of device. Sam filed for a patent immediately. When Jill became aware of his filing, she
also filed for patent protection. Assuming that there is no statutory bar, between Jill and Sam, who should be awarded the
patent prior to September 16, 2003 and why? What about after September 16, 2013? What law affects the result after
September 16, 2013? What would the result be in most other countries?
69. Chef Susan has developed a great new recipe for homemade ice cream that she serves at her restaurant. She would like
to keep the recipe secret and prevent anyone else from using it. What four areas should a trade secret program cover?