True / False
1. Businesses create a lot of knowledge for their owners, which has no intrinsic value.
a.
True
b.
False
False
1
2. Product development and intellectual-property development are not closely intertwined.
a.
True
b.
False
False
1
3. Previously, IP assets were more valuable than physical assets; now that position has reversed.
a.
True
b.
False
4. The only reason to become knowledgeable about IP rights is to learn what IP rights one’s own business has.
a.
True
b.
False
5. Once a trade secret has been developed, it must be kept confidential, or its value may be lost.
a.
True
b.
False
True
1
6. There are no legal means under patent or trademark law to protect trade secrets.
a.
True
b.
False
True
1
7. A logo may be a trademark.
a.
True
b.
False
True
1
7.3 Trademarks
8. Intellectual-property rights are legal rights associated with patents, trademarks, copyrights, and trade secrets.
a.
True
b.
False
9. A patent gives the patent holder the right to defend the patent against others who would attempt to manufacture, use, or
sell the invention during the period of the patent.
a.
True
b.
False
True
1
7.5 Patents
10. Laws and phenomena of nature, naturally occurring substances, abstract mathematical formulas, and ideas are eligible
to be patented.
a.
True
b.
False
False
1
7.5 Patents
Multiple Choice
11. In the knowledge economy:
a.
IP assets are more valuable than physical assets
b.
Physical assets are more valuable than IP assets
c.
In a well-run firm, IP assets and physical assets have equal value
d.
Physical assets cannot be protected
e.
None of the above is true
12. Regarding trade secrets, which of the following statements is not correct?
a.
Any firm that has trade secrets protects them under the Uniform Trade Secrets Act
b.
Trade secrets are not protectable under patent and trademark law
c.
A trade secret may consist of a formula, device, idea, process, or compilation of information
d.
All of the above choices are correct
e.
Only A and B are correct
a
1
7.2 Trade Secrets
13. If a firm has a trade secret, and the principals of the firm discuss it in a public elevator:
a.
The protection is lost
b.
The protection is heightened
c.
The protection remains the same
d.
None of these is correct
e.
The protection remains the same if those on the elevator are sworn to secrecy
a
1
7.2 Trade Secrets
14. A ____ consists of a novel and confidential formula, device, idea, process, pattern, or compilation of information that
gives the owner a competitive advantage in the marketplace.
a.
copyright
b.
patent
c.
trade secret
d.
property right
e.
trademark
c
1
7.2 Trade Secrets
15. ____ protect original works of authors, composers, screenwriters, and computer programmers.
a.
International protection
b.
Copyrights
c.
Trade secrets
d.
A patent
e.
All of these choices
b
1
7.4 Copyrights
16. To qualify for ____, the work must be in a fixed and tangible form; that is, one must be able to see or hear it.
a.
federal copyright protection
b.
federal patent protection
c.
trade secrets
d.
a trademark
e.
None of these choices
a
1
7.4 Copyrights
17. The ____ prohibits the falsification, alteration, or removal of copyright management data on digital copies, making it
a crime to circumvent an encrypted work without authorization.
a.
trademark law
b.
patent office
c.
Digital Millennium Copyright Act
d.
Trademark Dilution Revision Act
e.
All of these choices
c
1
7.4 Copyrights
18. Like patents, ____ can suffer from infringement, counterfeiting, or misappropriation.
a.
trade secrets
b.
copyrights
c.
trademarks
d.
All of these choices
e.
“trade secrets” and “copyrights” only
c
1
7.3 Trademarks
19. In order to trademark a color, the applicant must show all of these except:
a.
That the color is integral to the applicant’s business
b.
That the color has acquired a secondary meaning
c.
That the color is non-functional
d.
That the color has become identified with the applicant’s business
e.
The applicant must show all of these choices
a
1
7.3 Trademarks
20. Which of the following marks would not be eligible to become trademarks or servicemarks?
a.
A mark that is immoral
b.
A mark that is deceptive
c.
A mark that uses an official symbol of the city where the applicant resides
d.
A mark that uses a clip from a Taylor Swift album without telling her
e.
None of these would be eligible to become marks
e
1
7.3 Trademarks
21. To register a trademark online, one would navigate to:
a.
TESS
b.
US.gov
c.
USPTO
d.
Whitehouse.gov
e.
None of these choices
c
1
7.3 Trademarks
22. To search for a trademark online, one would navigate to:
a.
TESS
b.
US.gov
c.
USPTO
d.
Whitehouse.gov
e.
None of these choices
a
1
7.3 Trademarks
23. The First Sale Doctrine grants a copyright owner all of these rights except:
a.
Reproduction
b.
Preparation of original works
c.
Public performance
d.
Distribution
e.
Public display
b
1
7.4 Copyrights
24. Intellectual-property rights are protected by ____.
a.
patents
b.
trademarks
c.
copyrights
d.
trade secrets
e.
All of these choices
25. Copyright law protects:
a.
The concept
b.
The idea
c.
The thought process
d.
The form in which the idea is displayed
e.
None of these choices
d
1
7.4 Copyrights
26. The primary means of protecting a written work is a:
a.
trademark
b.
copyright
c.
trade secret
d.
patent
e.
None of these choices
b
1
7.4 Copyrights
27. The primary means of protecting an original invention is:
a.
Patent
b.
Copyright
c.
Trademark
d.
Trade secret
e.
None of these choices
a
1
7.5 Patents
28. What percent of all patents come from large companies?
a.
88 percent
b.
78 percent
c.
85 percent
d.
80 percent
e.
90 percent
d
1
7.5 Patents
29. In the context of patent protection, ____ is knowledge that is publicly available or was published prior to the date of
the invention − that is, before the filing of the patent application.
a.
utility
b.
prior art
c.
copyright
d.
intellectual property
e.
None of these choices
b
1
7.5 Patents
30. The three major categories of patents are design patents, business method patents, and ____ patents.
a.
utility
b.
prior art
c.
manufacture
d.
obviousness
e.
None of these choices
a
7.5 Patents
31. Which of the following is not a class into which a patent application must fit?
a.
A machine or something with moving parts or circuitry
b.
A design of a machine or something with moving parts or circuitry
c.
A process or method for producing a useful and tangible result
d.
An article of manufacture
e.
All of these are classes into which a patent application might fit.
1
7.5 Patents
32. Which of the following is not eligible for a patent?
a.
A machine
b.
A business method
c.
A naturally occurring substance
d.
An improvement on a machine
e.
A food additive
c
1
7.5 Patents
33. In 2006, the ____ was signed into law to provide relief to owners whose marks have been tarnished by third-party
marks.
a.
Trademark Fair Act
b.
Trademark Infringement Act
c.
Trademark Dilution Revision Act
d.
Copyright Dilution Revision Act
e.
Trade Secret Protection Act
c
1
7.3 Trademarks
34. ____ is knowledge that is publicly available or was published prior to the date of the invention − that is, before the
filing of the patent application.
a.
Utility
b.
Fair use
c.
Prior use
d.
Prior art
e.
Fair art
d
1
7.5 Patents
35. ____ patents are the most common type of patent.
a.
Utility
b.
Trademark
c.
Design
d.
Business method
e.
Technology
a
1
7.5 Patents
36. Most countries require that an invention be manufactured in the country within ____ of the issuance of the foreign
patent.
a.
six months
b.
one year
c.
two years
d.
three years
e.
four years
d
1
7.5 Patents
37. A ____ is a way for inventors to use the term patent pending.
a.
non-provisional patent
b.
provisional patent
c.
pending patent
d.
foreign patent
e.
patent application
b
1
7.5 Patents
38. The ____ protects inventors from infringers who would violate a patent by making small, insignificant changes in the
claims.
a.
dilution act
b.
infringement act
c.
doctrine of fair use
d.
doctrine of equivalents
e.
None of these choices
d
1
7.5 Patents
39. ____ is found if a trademark is likely to cause confusion with a trademark already existing in the marketplace.
a.
Infringement
b.
Dilution
c.
Counterfeiting
d.
Trademark violation
e.
None of these choices
a
1
40. Under the Copyright Extension Act of 1998, a copyright lasts for the life of the holder plus ____ years.
a.
50
b.
60
c.
70
d.
80
e.
100
1
Subjective Short Answer
41. Briefly discuss the three strategies a business might use to coordinate its IP strategy with its business strategy.
1
42. When would it not make sense to patent your new invention?
1
43. If an entrepreneur has a great idea for a trademark, but is not yet ready to start in business, what can she do?
1
44. Is it a good idea, when creating a trademark, to use something descriptive? Why or why not?
1
45. What does the Digital Millennium Copyright Act provide?
46. What three things should a basic copyright notice include?
47. Briefly discuss intellectual-property rights.
48. Briefly discuss what a utility patent protects.
49. Briefly discuss patent infringement.
50. Briefly discuss prior art and its effect on a patent application.