Andersons Business Law and the Legal Environment

Comprehensive Volume 23rd Edition Twome Jennings

Greene 1305575083 9781305575080
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Chapter 09 INTELLECTUAL PROPERTY RIGHTS AND THE

INTERNET

TRUEFALSE

1. Trade dress can be any word, name, symbol, device, or combination of these used to identify a
product.

(A) True (B)

False

Answer : (B)

2. Trademarks may be used to protect the exclusive right to identify either products or services.

(A) True

(B) False

Answer : (B)

3. Once a mark is registered in accordance with federal law, the holder of the mark has the
exclusive right to use the mark in perpetuity.

(A) True (B)

False

Answer : (B)
4. Trademarks and service marks are recorded with the Register of Copyrights.

(A) True

(B) False

Answer : (B)

5. Descriptive terms such as locations and colors are never subject to trademark protections.

(A) True

(B) False

Answer : (B)

6. If other persons are permitted to use a trademark, it will lose its exclusive character and become
generic.

(A) True

(B) False

Answer : (A)

7. Trade dress refers to the packaging look and overall image of a product.

(A) True

(B) False

Answer : (A)

8. Protection for trade dress is available under the Lanham Act.

(A) True

(B) False

Answer : (A)

9. To prevail in an action for trade dress infringement, a plaintiff must prove that its trade dress is
distinctive and nonfunctional and the defendant's trade dress is confusingly similar to the plaintiff's.

(A) True (B)

False

Answer : (A)

10. Cybersquatters are individuals who register and set up domain names on the Internet that are
identical or confusingly similar to existing trademarks in the hopes they can sell the name to the
trademark owner.

(A) True (B)

False

Answer : (A)

11. A copyright prevents the copying of an idea.

(A) True

(B) False
(A) True : (B)
Answer

(B) False

Answer : (A)
12. A copyright is the exclusive right given by federal statutes to the creator of a literary or an
artistic work to use, reproduce, and display the work.

(A) True (B)

False

Answer : (A)

13. The Sony Bono Copyright Extension Act of 1998 extended copyright protection to the life of the
author plus 50 years.

(A) True (B)

False

Answer : (B)

14. Copyright of a "work made for hire" runs for the life of the creator of the work plus 50 years.

(A) True

(B) False

Answer : (B)

15. The Berne Convention requires all works published after March 1, 1989 to contain a notice of
copyright.

(A) True (B)

False

Answer : (B)

16. In order for a work to be copyrightable, it must possess a significant amount of creativity.

(A) True

(B) False

Answer : (B)

17. An owner of a copyright may license some of his or her rights to another in exchange for royalty
payments.
(A) True : (B)
Answer

(B) False

Answer : (A)

18. A copyright owner may prohibit even limited use of copyrighted material if it is used for parody
or criticism.

(A) True (B)

False

Answer : (B)

19. All types of patents available under U.S. law are entitled to the same quality and duration of
protection once initial filing is perfected with the Patent and Trademark Office in Washington, D.C.

(A) True (B)

False

Answer : (B)

20. Although processes and machines are eligible for patent protection, manufactures and
compositions of matter are not.

(A) True (B)

False

Answer : (B)

21. Under the United States Supreme Court's "doctrine of equivalents," infringers may not avoid
liability for patent infringement by substituting insubstantial differences for some of the elements of
the patented product or process.

(A) True (B)

False

Answer : (A)

22. To be patentable, an invention must be new and not obvious to a person of ordinary knowledge
and skill in the art or technology to which the invention is related.

(A) True

(B) False
(A) True : (A)
Answer

(B) False

Answer : (A)
23. Once approved by the U.S. Patent and Trademark Office, a patent is presumed valid after a
public comment period of 90 days.

(A) True (B)

False

Answer : (B)

24. In limited circumstances customer lists are protected under trade secret laws.

(A) True

(B) False

Answer : (A)

25. When secret information is shared or communicated for a special purpose and the person
receiving the information knows it is not to be made known, it loses the protection it had while
secret.

(A) True (B)

False

Answer : (B)

26. Stealing trade secrets can result in fines, but not imprisonment.

(A) True

(B) False

Answer : (B)

27. Written computer programs are not given the same protection as other copyrighted material.

(A) True

(B) False

Answer : (B)

28. Computer software licensing agreements include restrictions on the use of software and give the
licensor greater protection than that provided by copyright law.
(A) True : (A)
Answer

(B) False

Answer : (A)

29. The Semiconductor Chip Protection Act of 1984 created a new form of industrial intellectual
property by protecting mask works and the semiconductor chip products in which they are embodied
against chip piracy.

(A) True (B)

False

Answer : (A)

30. Under the Semiconductor Chip Protection Act reverse engineering exemption, competitors may
study mask works but may not use the results of that study to design their own semiconductor chip.

(A) True (B)

False

Answer : (B)

MULTICHOICE

31. The Lanham Act grants protection for:

(A) marks.

(B) patents.

(C) copyrights.

(D) trade secrets.

Answer : (A)

32. Trademark law categorizes marks along a spectrum of , based on a mark's capacity to
serve .

(A) suggestiveness, the characteristics of the service to which they relate.

(B) fancifulness, the characteristics of the product to which they relate.

(C) descriptiveness, a source-identifying function.

(D) distinctiveness, a source-identifying function.

 Which
Answer
37. : (D)
of the following is not an exclusive right of the holder of a copyright?

(A) To prepare works that are derived from the original work.

33. It is important to protect trade dress against adoption by a competitor failure to protect the
mark can:

(A) deceive purchasers into believing they have obtained a comparable product.

(B) dilute the originator's resource investment in its product appearance.

(C) usurp the business goodwill of the developer of the trade dress.

(D) allow the mark pass into the English language (like ‘aspirin') and become generic.

Answer : (D)

34. ICANN is a nonprofit corporation responsible for:

(A) granting safe harbors for good faith domain name violators.

(B) removing cybersquatters from the internet.

(C) resolving differences among domain names.

(D) coordinating the use of domain names across the Internet.

Answer : (C)

35. A copyright bestows upon the creator of an artistic or literary work a federal statutory right to
exclusively:

(A) use the work.

(B) reproduce the work.

(C) display the work.

(D) All of these

Answer : (D)

36. The DMCA provides a(n) for internet service against claims of .

(A) dispute resolution forum, copyright infringement.

(B) indemnification, copyright infringement.

(C) mechanism, trademark infringement.

(D) safe harbor, copyright infringement.

Answer : (D)
 Which
Answer
37. : (D)
of the following is not an exclusive right of the holder of a copyright?

(A) To prepare works that are derived from the original work.

(B) To obtain a court order enjoining use of the original work by another.

(C) To distribute copies of recordings of the original work.

(D) To display or perform the original work in public.

Answer : (B)

38. In determining whether limited use of copyrighted material may be permitted as "fair use,"
courts will consider:

(A) the purpose and character of the use, including whether such use is of a commercial nature or is
for nonprofit educational purposes.

(B) the nature of the copyrighted work.

(C) the amount and substantiality of the portion used in relation to the copyrighted work as a whole.

(D) all of these.

Answer : (D)

39. The Digital Millennium Copyright Act :

(A) made notice of copyrights no longer mandatory.

(B) changed the life of a copyright.

(C) was enacted to curb the pirating of software and other pirated works.

(D) provided a safe harbor for copyright infringers.

Answer : (C)

40. Three types of patents available under U.S. law are:

(A) utility, product, design.

(B) design, packaging, invention.

(C) design, plant, utility.

(D) utility, regulatory, common law.

Answer : (C)

41. Design patents have a duration of years.

(A) 10

(B) 14

(C) 17

(D) 20

Answer : (B)

42. The type of patent that may be granted to developers of plant reproduction methods is called a:

(A) process patent.

(B) functional or utility patent.

(C) improvement patent.

(D) plant patent.

Answer : (D)

43. The type of patent that may be granted to developers of new and non-obvious ornamental
features of manufactured articles is called a(n):

(A) design patent.

(B) functional or utility patent.

(C) improvement patent.

(D) plant patent.

Answer : (A)

44. The America Invents Act:

(A) amended federal copyright law.

(B) replaced the patent "first to file system" with a "first to invent" system.

(C) speeds up the application process for energy conservation inventions for a $4,800 fee.

(D) replaced the patent "first to invent system" with a "first to file" system.

Answer : (D)

45. A business formula, information compilation, or device that provides an advantage over
competitors that do not have it is known as a:

(A) competitive advantage.

(B) strategic advantage.

(C) trade secret.

(D) restraint of trade.

Answer : (C)

46. The measure of damages for misappropriation of a trade secret is:

(A) ten times the loss of revenues by the owner of the trade secret (punitive damages).

(B) three times the loss of revenues by the owner of the trade secret (treble damages).

(C) the loss of revenues by the owner of the trade secret.

(D) the profits earned by the ‘thief' derived from the misappropriation of the trade secret.

Answer : (D)

47. Under the Computer Software Copyright Act of 1980, a written program:

(A) must be written in object code in order to be protected.

(B) must be written in source code in order to be protected.

(C) is protected as any other copyrighted material, even if it is in written form.

(D) is protected but does not receive the same protections as other copyrighted materials.

Answer : (C)

48. To analyze a copyright infringement claim in the context of computer programs, courts will
primarily examine:

(A) the total number of program steps that are substantially similar.

(B) the number of significant program steps that are substantially similar.

(C) whether the programs appear substantially similar in ordinary language.

(D) whether the programs appear substantially similar in machine language.

Answer : (B)

49. The best way to distribute and sell copyrighted computer programs is using:

(A) copyright laws.

(B) patent laws.

(C) trade secret laws.

(D) restrictive licensing.

Answer : (D)

50. Owners of mask works are entitled to the exclusive right to reproduce and distribute their
products under U.S. law for a period of:

(A) 10 years.

(B) 20 years.

(C) 28 years.

(D) the life of the creator plus 70 years.

Answer : (A)

51. Under the Semiconductor Chip Protection Act's , competitors may not only study mask
works but may also use the results of that study to design their own semiconductor chip products
embodying their own original masks.

(A) fair use exemption

(B) statutory damages waiver

(C) reverse engineering exemption

(D) semiconductor mask product exemption

Answer : (C)

ESSAY

52. Herman Corporation is engaged in preparing a marketing campaign consisting of electronic and
print images. Drawings and photographs for the campaign are coming from a variety of sources,
including popular magazines, international newspapers, and web sources. The marketing vice
president asserts that the company may use the images under the fair use doctrine. What factors
should be considered in the application of the fair use doctrine?

Graders Info :

Copyright law requires a consideration of four factors in determining the application of the fair use
doctrine. First, the purpose and character of the use must be considered. Here, the commercial, in
contrast to nonprofit, use of the images does not favor Herman Corporation's position. Second, the
nature of the work is a factor. All of the images were publicly available, so this factor favors Herman
Corporation. Third, the extent of the copying must be considered. Again, Herman Corporation is
favored because only selected aspects of the source materials were used. Finally, the value of the
copyrighted work is an issue. Application of this factor may work against Herman Corporation's
position, since the images are a critical part of the product generated by the media outlets.

53. Smarts and Then Some, Inc. developed a software program after several years of research and
development. The particular software program was then test-marketed, at which point a competitor
filed suit claiming that the Smarts and Then Some program violated the competitor's copyright on a
program they too were test-marketing. What is the test to determine whether a copyright has been
violated?

Graders Info :

With the passage of the Computer Software Copyright Act of 1980, greater clarity was brought to
answering the question of whether a software copyright is violated. In rendering a decision
regarding software copyright violation, courts today attempt to determine the degree of similarity
between the two programs in terms of structure, flow, sequence, and organization.