The Legal Environment of Business and Online Commerce, 7e (Cheeseman)
Chapter 8 Intellectual Property and Cyber Piracy
1) A competitor can lawfully discover a trade secret by performing reverse engineering.
2) A patent can only be claimed for a limited amount of time.
3) Improvements to existing machines, processes, or compositions of matter cannot be patented.
4) If an invention is obvious, then it does not qualify for a patent.
5) Utility patents for inventions are valid for the whole of the inventor’s life and 70 years after
that.
6) The patent term begins to run from the date the patent is issued.
7) 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.
8) A patent in the public domain can be purchased by a non-patent holder.
9) Non-patented inventions that have been in public use for over a year can still be patented.
10) Utility patents for inventions are valid for 20 years.
11) A utility patent is a patent that may be obtained for the ornamental nonfunctional design of
an item.
12) Copyright for a work can only be claimed once the U.S. Copyright Office issues it.
13) After the copyright period runs out, the work enters the public domain.
14) The fair use doctrine for copyrights allows certain limited unauthorized use of copyrighted
materials.
15) The fair use doctrine for copyrights does not allow reproduction of a work in a legislative or
judicial proceeding.
16) The No Electronic Theft Act (NET Act) can be invoked for copyright infringements that do
not involve financial gain.
17) A company slogan is an example of a trademark.
18) A trademark is only issued if the registrant proves he has used the mark in commerce.
19) The trademark symbol “TM” is used to indicate a registered mark.
20) The trademark symbol “SM” is used to indicate a mark associated with a product.
21) A party that does not register its brand name has no legal right over it.
22) The trademark symbols “TM” and “SM” can be used with marks that have been not been
registered.
23) A service mark is used to distinguish the product of the holder from those of its competitors.
24) A party has to be a member of an organization to use a certification mark.
25) Ordinary words or symbols that have taken on a secondary meaning will qualify as marks.
26) Distinctive marks are ordinary words or symbols that have acquired special meaning with a
product or service.
27) Trademarks that have become generic names are protected under federal trademark law.
28) In a dilution lawsuit, the plaintiff needs to show proof of actual harm suffered in order to win
the lawsuit.
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29) Which of the following would be considered to be a part of intellectual property?
A) patents
B) vehicles
C) business contracts
D) buildings
30) Intellectual property falls into a category of property known as ________.
A) tangible property
B) moveable property
C) real property
D) intangible property
31) A ________ is a product formula, pattern, design, compilation of data, customer list, or other
covert business information.
A) copyright
B) trade secret
C) trademark
D) patent
32) A closely guarded formula for a recipe protected by a soft drink manufacturer would be
considered as an example of a ________.
A) trade secret
B) copyright
C) patent
D) trademark
33) If a competitor reverse engineers a trade secret, then the competitor is ________.
A) rightfully allowed co-ownership to the trade secret and its original trade mark
B) allowed to use the trade secret but not the original trademark
C) not allowed to gain commercially from the trade secret
D) obliged to inform the original owner of the trade secret
34) A competitor can lawfully use a rival’s trade secret if the competitor got the trade secret by
means of ________.
A) copyrighting
B) cross-licensing
C) patenting
D) reverse engineering
35) 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 an injunction prohibiting the offender from divulging the trade secret
B) ask for transfer of any of the offender’s patents to the plaintiff
C) obtain the offender’s trademarks or brand name as payoff
D) ask to acquire the offender’s trade secrets as payoff
36) What federal statute was enacted by the Congress to protect trade secrets?
A) Sarbanes-Oxley Act
B) Lanham Act
C) Telecommunication Act
D) Economic Espionage Act
37) 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) it is a federal crime to steal another’s trade secret
C) the rights to a trade secret will have to be renewed after a specified period of time
D) trade secrets can be shared for a limited amount of time
38) 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) trade secret
C) patent
D) trademark
39) How do patent laws help an inventor?
A) by helping the inventor guard his patented invention from the public
B) by providing protection for patented inventions from infringement
C) by helping the inventor meet potential buyers for his patented inventions
D) by letting the inventor keep his patents indefinitely
40) 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 promote uniformity in patent laws.
D) It helps to enact new patent laws.
41) What is a patent number?
A) a number assigned to a patent when it comes under investigation
B) a number assigned to a patent when the patent is pending
C) a number assigned to a patent during application
D) a number assigned to a patent once the patent is granted
42) A ________ is a patent that protects the functionality of a patent.
A) utility patent
B) method patent
C) design patent
D) process patent
43) 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 once a universal consensus has been reached on its
validity.
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 if it is a part of the tangible environment.
44) According to the public use doctrine for patents, ________.
A) the inventor has to test his invention in the public domain, to measure its validity, before
being granted a patent
B) an invention cannot be used in the public domain prior to it being granted a patent
C) a patent will not be granted if the invention was already in public use for one year before
filing application
D) the invention will come into the public domain once its term period has expired
45) When does a patent enter the public domain?
A) when the patent term period has expired
B) when the patent has been challenged in court and found to be an infringement
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
46) 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 term begins to run from the date the patent application is filed.
C) The patent term begins to run from the date the patent is issued.
D) The patent period for an invention is 17 years.
47) Which of the following provisions does the American Inventors Protection Act make?
A) It does not let non-patent holders to challenge the inventor’s patent.
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 lets the inventor apply for a provisional right application.
48) Which of the following types of patents is valid only for a period of 14 years?
A) design patent
B) utility patent
C) process patent
D) business method patent
49) ________ 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) Patent
B) Copyright
C) Trademark
D) Trade secret
50) Which of the following is suitable for copyrighting?
A) buildings
B) business methods
C) musical compositions
D) product logos
51) 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 eliminates the need to place the copyright symbol or the word “copyright” on a
copyrighted work.
B) The treaty makes it mandatory to place the copyright symbol on all copyrighted works.
C) The treaty stipulates the time period a copyright can be retained by the copyright holder
before it enters the public domain.
D) The treaty sets the rules for how copyright can be dealt with when sharing copyrighted work
between governments.
52) What is the period of copyright protection provided for individuals under the Sonny Bono
Copyright Term Extension Act of 1998?
A) Individuals are granted 20 years of copyright protection, after which it has to be renewed for a
fee.
B) Individuals are granted copyright protection for their lifetime plus 70 years.
C) Individuals are granted 95 years copyright protection from the year of first publication of the
work.
D) Individuals are granted 120 years copyright protection from the year of creation of the work.
53) What happens to a copyrighted work after it has finished its copyright period with regards to
its ownership?
A) A non-copyright holder can purchase the rights to the work.
B) The work will enter the public domain to be used for free.
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
fee.
54) Which of the following would constitute a copyright infringement?
A) using several clips from a movie in a documentary
B) a brief quotation in a news report
C) use of copyrighted material in a spoof or satire
D) reproduction by a teacher or student of a small part of the work to illustrate a lesson
55) 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 guides the U.S. Copyright Office in determining what works require copyrights based on
the works’ validity.
C) It permits use of copyright material by someone other than the copyright holder at a fixed fee.
D) It permits certain limited use of a copyright by someone other than the copyright holder
without the permission of the copyright holder.
56) In terms of copyright law, the use of copyrighted material in a satire or parody would be an
example of ________.
A) piracy
B) copyright sharing
C) application of fair use doctrine
D) copyright infringement
57) 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) No Electronic Theft Act
D) Sonny Bono Copyright Term Extension Act
58) How is a copyright different from a patent?
A) Patents fall under the federal law, while copyrights fall under state law.
B) Copyrights should be novel, and useful, while patents need not be so.
C) Copyrights are applied for inventions, while a patent is applied for tangible writings.
D) Patents have a limited term period, while copyrights carry lifelong terms.
59) ________ 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) Patent
C) Trademark
D) Copyright
60) Which of the following intellectual properties is protected by the Lanham Act?
A) trade secret
B) trademark
C) copyright
D) patent
61) 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) Pay a fine so that the trademark gets registered immediately.
B) Change the logo slightly, and reapply for the newly altered logo.
C) Cancel the current application and apply for the same logo again.
D) Apply for a six-month extension for the logo.
62) “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) trademark
B) patent
C) trade secret
D) copyright
63) 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 ordinary words establish new meaning due to its attachment to a product or service
C) when a distinctive mark or design is created for a new product or service
D) when descriptive words are used that have no direct relevance to a product or service
64) 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) private brand
B) service mark
C) orphan work
D) generic name
65) ________ 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) Tarnishment
B) Blurring
C) Astroturfing
D) Trolling
66) Give an account of the Economic Espionage Act and its importance in combating cyber
piracy.
67) What is a provisional patent application?
68) Explain the process of copyright registration.
69) Explain what a generic name is with reference to trademarks.
70) Give an account of trademark dilution.
71) Congress enacted the federal ________, which makes it a federal crime to steal another’s
trade secrets.
72) Applications for patents must be filed with the ________.
73) The ________ is a special federal appeals court that hears appeals from the Board of Patent
Appeals and Interferences of the U.S. Patent and Trademark Office and federal courts
concerning patent issues.
74) A(n) ________ is a patent that protects the functionality of a patent.
75) The ________ doctrine allows for certain limited unauthorized use of copyrighted materials.
76) In 1997, Congress enacted the ________ Act, a federal statute that criminalizes certain
77) In 1946, Congress enacted the ________ Act to provide federal protection to trademarks,
service marks, and other marks.
78) A(n) ________ is a distinctive mark, symbol, name, word, motto, or device that identifies the
goods of a particular business.
79) A trademark that becomes a common term for a product line or type of service is called a(n)
________.
80) ________ is a type of trademark dilution where a party uses another party’s famous mark to
designate a product or service in another market so that the unique significance of the famous
mark is weakened.
81) 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.
82) A(n) ________ mark 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.