CHAPTER 24 – INTELLECTUAL PROPERTY
TRUE/FALSE
1. A patent is available for an idea as well as a tangible application.
2. A copyright is valid for 28 years after it is obtained and can be renewed for another 28 years.
3. Provisional patents are good for one year.
4. A design patent protects the appearance of an item and is valid for 14 years.
5. Martina developed a new type of apple tree which could be reproduced through grafting. She cannot
protect her rights in this tree by obtaining a plant patent since the tree cannot be reproduced by
planting its seeds.
6. In a recent case, In re Nuijten, the U.S. appeals court ruled that a method of encoding additional
information on electronic signals emitted from digital audio files was not patentable because, although
useful, the method was not a mechanical, electrical, or chemical invention, a process, a machine, or the
composition of matter.
7. Unlike with patents, the ideas underlying copyrighted material need not be novel.
8. Under the “fair use doctrine,” instructors cannot be liable for copyright violations.
9. Southern Bar-B-Q owns a special, secret recipe for sauce which it guards because it gives the
restaurant a competitive advantage. If Mort willfully misappropriates the recipe, a court may hold him
liable to Southern for double damages.
10. The name “Johnson Garage Doors” cannot be a trademark because Johnson is a surname that is
already being used and other people have the right to continue to use the name.
11. The Supreme Court has held that parody of copyrighted material is a per se violation of copyright law.
12. Christy and Sylvester trade movies by downloading each other’s movie files. If the copyrighted
material has a retail value greater than $1,000, Christy and Sylvester are subject to criminal penalties
under the No Electronic Theft Act, even if they had no profit motive in reproducing the movies.
13. If a trademarked name acquires a generic meaning, the owner of the trademark loses protection.
14. In hopes of speeding up the approval process and making it more accurate, the Patent and Trademark
Office allows third parties to submit evidence that the invention is not novel.
15. A color cannot be trademarked since it cannot be kept from use by other businesses.
MULTIPLE CHOICE
1. The requirements for a patent include all EXCEPT:
a.
the invention must be novel.
b.
the invention must be nonobvious.
c.
the invention must be commercially valuable.
d.
the invention must be useful.
2. The advantages of trademark registration include all EXCEPT:
a.
potential damages are higher.
b.
after five years the mark becomes almost impossible to challenge.
c.
it allows the trademark owner to use the TM symbol to put others on notice of the
protection.
d.
the mark is valid nationally.
3. Which of the following is correct?
a.
A copyright can be renewed once it expires.
b.
A patent can be renewed once it expires.
c.
A trademark can be renewed as long as the mark is still in use.
d.
None of the above.
4. In order for a copyright holder to collect money damages from a person who used copyrighted
material, it must be proven that:
a.
the infringement was intentional.
b.
the copyright holder sustained more than $500 in actual damages.
c.
the copyrighted material contained the copyright symbol, name of the copyright holder,
and the year of copyright.
d.
None of the above.
5. Janice wrote a song called “Feelings of Love.” She wrote the piano score and lyrics for a class she was
taking at college and turned it into her professor.
a.
Janice’s song was automatically copyrighted when she wrote it down on paper.
b.
If Janice wishes to enforce her copyright, she must first register her song with the
Copyright Office.
c.
Both of the above are correct.
d.
Neither a nor b.
6. The Basic Books, Inc. v. Kinko’s Graphic Corp. case held:
a.
professors could print and sell lengthy course packets of copyrighted material under the
“fair use” doctrine.
b.
professors could not print and sell lengthy course packets of copyrighted material under
the “fair use” doctrine.
c.
professors could not use commercial printing companies under the “fair use” doctrine.
d.
None of the above.
7. The Good Housekeeping Seal of Approval is an example of a:
a.
trademark.
b.
service mark.
c.
collective mark.
d.
certification mark.
8. Which of the following words could be registered as a trademark?
a.
Crunchy peanut butter.
b.
Low-fat peanut butter.
c.
Green peas.
d.
yStar peanuts.
9. Intellectual property:
a.
producers are likely to be adequately paid in the free market.
b.
production is not subsidized by the government.
c.
typically is expensive to produce but cheap to reproduce and transmit.
d.
typically is expensive to produce, copy, and transmit.
10. Richard wrote a song called “College Days.” He copyrighted the composition and had it professionally
printed. A couple years later he was attending a business meeting about 1500 miles from his home.
While sitting in a nightclub, he heard a small local band perform a song called “College Memories.”
The music and words were extremely similar to his song. The composer of “College Memories” claims
he never heard of Richard’s song and that she is offended he would accuse her of stealing his work. If
Richard wishes to sue for copyright infringement, he must prove:
a.
only that his song and the infringer’s song are substantially the same.
b.
that his work was original, and the infringer actually copied his work or that the infringer
had access to his song and that the two works are substantially the same.
c.
that he sustained money damages as a result of the infringement.
d.
that he registered the song for a copyright.
11. If Cub Cadet wins a trademark infringement suit by proving the defendant’s trademark, Kub Kadet, is
likely to deceive customers about who made the goods, Cub Cadet is entitled to:
a.
up to three times actual damages.
b.
an injunction to prevent further infringement.
c.
any profits Kub Kadet made on its infringing product.
d.
All of the above.
12. AVCO used a famous registered trademark of BNC, Inc. in a manner that reduced its value. This is a
violation of the:
a.
Federal Fair Use Act.
b.
Federal Trademark Dilution Act.
c.
Federal Trade Protection Act.
d.
Cleveland/Myer Act.
13. What is the name of the treaty that allows American patents to be recognized and enforced in member
countries?
a.
The Paris Convention for the Protection of Industrial Property.
b.
The International Treaty of Trademarks and Patents.
c.
The World Agreement of London.
d.
The Berne Convention.
14. Jack goes to Fast Copy Center and pays to have 40 copies of a textbook made. Jack then sells the
photocopied versions of the book to fellow students for $60 a copy (as opposed to the $95 textbook
price). The textbook author learns of this and sues Jack and the copy center. Which statement is
correct?
a.
Jack and the copy center are both liable to the author.
b.
Jack is liable to the author but the copy center is not.
c.
The copy center is liable to the author but Jack is not.
d.
Neither the copy center nor Jack is liable to the author.
15. A college professor copies seven chapters from a book called “How to Get Better Grades—A Creative
Approach to College Success!” There are ten chapters in the book. She incorporates this material into a
packet of material that is printed in her college’s copy center. The packet is then placed in the local
book store and is placed on the required materials list for students to purchase. The author of the book
on getting better grades believes the professor has violated his copyright.
a.
The author is right. The professor should not have copied the chapters and placed them for
sale in the bookstore.
b.
The author is technically correct. However, even though an infringement occurred, he
cannot sue the professor since educational personnel are exempt from liability under
copyright law.
c.
The author is not correct. Under the “fair use doctrine” a college professor can copy
material and distribute it to students for educational purposes.
d.
The author is not correct. It does not appear that the professor actually made any money
from the alleged copyright infringement.
16. Monic, a college professor, makes 30 photocopies of a magazine article and passes the article out to
her students. The students are assigned to read the article and write an opinion paper about it. Has
Monic violated copyright law?
a.
Yes. Though the author will probably not enforce his or her rights under this situation,
Monic has technically violated federal copyright law.
b.
Yes. Though educators have a right under the “fair use doctrine” to make limited use of
copyrighted materials, Monic violated the law when she made photocopies of an entire
article and distributed them to her students.
c.
No. Monic has acted within the fair use doctrine.
d.
No, as up to 50 photocopies of articles are always permissible.
17. Ernest invents a novel, useful, nonobvious product. He:
a.
must apply for a patent within one year of selling the product commercially.
b.
is entitled to a patent over someone else who invents the same product if he is the first to
get a company to produce it commercially.
c.
may receive patent protection for two years by filing a simpler, shorter, cheaper
provisional patent application while he is working on his complex, regular patent
application.
d.
may sell his product for up to five years to see how well it sells before going through the
complex process of filing a patent application with the PTO Office.
18. James and his band played a very familiar song. However, they made up different words for the song
that were intended to be funny. James’s version of the popular song with different words is known as:
a.
a “knock off.”
b.
a parody.
c.
a “mockarama.”
d.
a “link.”
19. Jason and Stacey go to the movie theater and decide to use a camcorder to film the show so they can
watch it again with their friends later at home. They have:
a.
made an ethical, legal, wise economic decision since the cost of viewing the movie in the
theater again is too high for their limited budget.
b.
violated the Family Entertainment and Copyright Act, and committed a criminal offense.
c.
violated the No Electronic Theft Act.
d.
committed an illegal act by violating the Digital Millennium Copyright Act.
20. International copyright protection:
a.
is automatic for works created in member countries of the Berne Convention.
b.
is granted for the life of the author plus 70 years under the Berne Convention.
c.
is not yet available for computer programs.
d.
lacks any enforcement capability for overseas infringement of works authored in the
United States.
21. The red, white and blue hot air balloon used by the real estate company, Remax, illustrates a:
a.
suggestive mark.
b.
service mark.
c.
certification mark.
d.
collective mark.
22. Victoria registered a trademark under the Lanham Act. Six years later Don noticed Victoria’s
trademark and filed a lawsuit to enjoin her from using it. He proved he had registered the mark in
several states more than ten years before Victoria obtained her trademark. Will Don prevail?
a.
Probably. Victoria should have conducted a better search of trademarks registered under
state laws.
b.
Yes. Federal law specifically states a federal trademark is not valid for any lawful owner
of the same mark under state law.
c.
No. Don will not prevail and Victoria can continue to use the mark because she has been
using it for more than 5 years.
d.
None of the above.
23. Which of the following started out as a trademark name?
a.
Zipper.
b.
Linoleum.
c.
Nylon.
d.
All the above.
24. A company’s trade secret lasts for:
a.
20 years after the application is filed.
b.
70 years after the death of the creator.
c.
10 years, but it can be renewed for an unlimited number of terms as long as it is used.
d.
as long as it is kept confidential.
25. A trademark lasts for:
a.
20 years after the application is filed.
b.
70 years after the death of the creator.
c.
10 years, but it can be renewed for an unlimited number of terms as long as it is used.
d.
as long as it is kept confidential.
ESSAY
2. Explain what a domain name is. Discuss if and how a domain name can be registered as a trademark or
if a trademark can be registered as a domain name.
ANS:
3. Identify the main provisions of the Digital Millennium Copyright Act and two arguments opponents of
the Act raise.
4. List the four different types of “marks” that can be protected under trademark law. Explain how each
mark is used.
5. Briefly define a patent, copyright, and trademark and distinguish among them.
ANS:
6. Derrick buys a CD, but after listening to it, decides he doesn’t like the music. May he legally sell the
CD to someone else? If he thinks his cousin would enjoy the music, may he legally copy the CD for
her?