chapter 6 - intellectual property rights -...

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Chapter 6 - Intellectual Property Rights

Indicate whether the statement is true or false.

1. The need to protect intellectual property is recognized in the Declaration of Independence. a. True b. False

2. A patent and a copyright are examples of intellectual property, but a trademark is not an example of intellectual property. a. True b. False

3. A famous trademark may be diluted only by the unauthorized use of an identical mark. a. True b. False

4. By using another’s trademark, a business could lead consumers to believe that its goods were made by the other business. a. True b. False

5. A trademark need not be registered to support a trademark infringement action. a. True b. False

6. States do not have trademark statutes. a. True b. False

7. An arbitrary use of ordinary words may not be trademarked. a. True b. False

8. Tosucceed in a lawsuit alleging trademark dilution, the plaintiff must prove that consumers are likely to be confused by the unauthorized use of a mark. a. True b. False

9. A personal name is protected under trademark law if it acquires a secondary meaning. a. True b. False

10. Counterfeit goods copy or otherwise imitate trademarked goods, and they are in fact sometimes genuine. a. True b. False

11. A service mark distinguishes products used by those in public service.

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a. True b. False

12. A certification mark distinguishes products approved, or “certified,” by the government. a. True b. False

13. Trade names have the same legal protection as trademarks. a. True b. False

14. A trade name cannot be protected if it is unusual. a. True b. False

15. A patent applicant must demonstrate that an invention is “commercially practicable” to receive a patent. a. True b. False

16. Patent infringement occurs only if all features or parts of a product are copied. a. True b. False

17. With a few exceptions, almost anything is patentable. a. True b. False

18. The first person to invent a product obtains the patent rights rather than the first person to file an application for a patent. a. True b. False

19. A license permits the use of intellectual property for certain limited purposes. a. True b. False

20. It is not possible to copyright an idea. a. True b. False

21. An exception to liability for copyright infringement is made under the “fair use” doctrine. a. True b. False

22. A person can reproduce copyrighted material for purposes such as teaching, including multiple copies for classroom use, without paying royalties.Copyright Cengage Learning. Powered by Cognero.

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a. True b. False

23. Copyright protection is automatic—registration is not required. a. True b. False

24. All aspects of software are protected by copyright law. a. True b. False

25. A copy mustbe exactly the same as the original to infringe a copyright. a. True b. False

26. A person who buys a copyrighted work cannot sell it to someone else. a. True b. False

27. A marketing technique can be a trade secret. a. True b. False

28. Theft of confidential data by industrial espionage is a theft of trade secrets. a. True b. False

29. Production techniques are not trade secrets. a. True b. False

30. Protection of trade secrets extends both to ideas and to their expression. a. True b. False

31. The theft of trade secrets is a federal crime. a. True b. False

32. Anyone who writes a book has automatic international copyright protection—even in nations that are not parties to international agreements relating to intellectual property rights. a. True b. False

33. Each member country of the TRIPS agreement must include in its domestic laws intellectual property rights. a. TrueCopyright Cengage Learning. Powered by Cognero.

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b. False

34. The TRIPS agreement covers computer programs. a. True b. False

35. The Anti-Counterfeiting Trade Agreement applies to counterfeit physical goods and pirated, copyrighted works being distributed via the Internet. a. True b. False

Indicate the answer choice that best completes the statement or answers the question.

36. iMeeMine Inc. develops a new mobile phone that the company names “Call Mee.” iMeeMine can obtain trademark protection for a. the phone. b. the “newness” of the device. c. the name “Call Mi.” d. none of the choices.

37. In its ads for athletic shoes, Sleek Feet LLC uses a trademark that is similar, but not identical, to the famous, registered mark of Thor, Inc. Sleek Feet’s unauthorized use of the mark constitutes trademark dilution, provided that a. consumers are confused. b. Sleek Feet and Thor are competitors. c. Sleek Feet’s use is intentional. d. Sleek Feet’s use is likely to impair the distinctiveness of Thor’s mark or harm its

reputation.

38. Beans Coffee & Cocoa Company makes and sells a chocolate-flavored coffee drink under the name “CoCoCafe.” Darkroast Java, Inc., later markets a similar tasting drink under the name “KoKoKafe.” This is most likely a. copyright infringement. b. patent infringement. c. trademark infringement. d. a theft of trade secrets.

39. Bubbly Cola features Sparkly Cola’s trademark without its owner’s permission. Bubbly’s use of the mark is actionable provided a. consumers are confused. b. Bubbly’s use is intentional. c. Bubbly’s use reduces the value of Sparkly’s mark. d. Sparkly’s mark is registered.

40. From Southeast Asia, Tai Ltd. exports genuine trademarked goods to the United States. Tai also makes labels and packaging bearing another firm’s trademark, ships the labels to another location, and then affixes them to an inferior product to deceive buyers. Tai sells these goods to retailers who are unaware that the marks are counterfeit. It is a crime to a. import genuine trademarked goods.Copyright Cengage Learning. Powered by Cognero.

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b. traffic in counterfeit labels, stickers, and packaging. c. sell counterfeit versions of brand-name products in foreign

countries. d. unknowingly use a counterfeit mark on goods.

41. John Jones decides to use his personal name for a line of clothing he is developing. Whether or not the name John Jones acquires a secondary meaning will depend on a. how extensively John markets his line of

clothing. b. the market for John’s line of clothing. c. the number of clothing sales John makes. d. all of the choices are correct.

42. Li’l Canine Company (LCC) uses a trademark that neither LCC nor anyone else has registered with the government. Under federal trademark law, LCC a. can register the mark for protection. b. cannot register a mark that has been used in commerce. c. has committed trademark infringement. d. must put off registration until the mark is out of use for six months.

43. In 2015, DataMarketing, Inc., registers its trademark as provided by federal law. After the first renewal, this registration a. is renewable every ten years. b. is renewable every twenty years. c. runs for the life of the corporation plus seventy

years. d. runs forever.

44. Wendy works as a weather announcer for a TV station under the character name Weather Wendy. Wendy can register her name as a a. a certification mark. b. a collective mark. c. a service mark. d. atrade name.

45. Gold & Sweet Company bottles and sells maple syrup from its plant in Vermont. On the labels is a logo that states “100% Genuine New England Maple Syrup Certified by the Northeast Maple Syrup Harvesters Association.” This logo is a. a certification mark. b. none of the choices. c. a service mark. d. trade dress.

46. Constellation Research Inc. uses a mark associated with its name to distin-guish its services from those of other tech firms. This mark is a. a certification mark.


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b. a collective mark. c. a service mark. d. none of the choices.

47. Chris operates the Devil’s Brew chain of coffee stands. “Devil’s Brew” is a. acertification mark. b. none of the choices. c. aservice mark. d. atrade name.

48. Quinn designs a new tablet computer, which he names “Phlip Top.” He also writes the operating manual that is included with each final product. Quinn could obtain patent protection for a. the tablet. b. all of the choices. c. the name. d. the operating manual.

49. Resurgent Corporation designs a new mobile device that the firm names “SyFye.” The company can obtain patent protection for a. thedevice. b. theidea for the device. c. the name “SyFye.” d. none of the choices.

50. Metro Movers Miami Corporation allows Metro Movers Milwaukee Company to use Metro Movers’ trademark as part of its company advertising. This is a. a license. b. likely to confuse consumers. c. trademark infringement. d. trademark dilution.

51. GreatGro, Inc., makes genetically modified seeds with properties that are iden-tical to Hearty Harvest Corporation’s patented seeds, without Hearty Harvest’s permission. This is most likely a. copyright infringement. b. patent infringement. c. trademark infringement. d. not infringement.

52. Gas Up, Inc., designs, makes, and sells a fuel injection system that copies Hybrid Corporation’s design without Hybrid’s permis-sion. This is most likely a. copyright infringement. b. patent infringement. c. trademark infringement. d. a theft of trade secrets.


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53. Zoey invents “One for All,” new business inventory control software, and applies for a patent. If Zoey is granted a patent, it will protect her product a. for ten years. b. for twenty years. c. for the life of the inventor plus seventy

years. d. forever.

54. RiteMade Machinery, Inc., designs, makes, and sells a drill press. Steel Equipment Company copies the design without RiteMade’s permission. Steel’s conduct is actionable provided a. consumers are confused. b. Steel’s conduct is intentional. c. Steel’s conduct reduces the value of RiteMade’s

design. d. RiteMade’s design is patented.

55. Mary Kate Corporation allows Ashley Company to use Mary Kate’s trademark as part of Ashley’s domain name. This is a. a license. b. a likelihood of consumer confusion. c. cybersquatting. d. trademark dilution.

56. Moe applies nano technology to invent a device that reduces the half-life of spent plutonium rods used in nuclear-fuel reactors. He names the device “Halftime.” He also writes Nano Nukes, a book about this invention and other uses for nano technology. Moe can obtain copyright protection for a. the device. b. all of the choices. c. the name “Halftime.” d. the book Nano Nukes.

57. In his recording “Nuthing Nu,” O’Reilly uses the melody of a song written by Pete. O’Reilly did not obtain Pete’s permission. This is a. copyright infringement. b. patent infringement. c. trademark infringement. d. none of the choices.

58. Trade Publishing Inc. owns the rights to the Aura series of paranormal-themed novels, and publishes and sells copies in bookstores and online. Sydney buys and reads a copy of each book in the series. With regard to these copies, Sydney can a. sell them to someone else. b. only sell them back to the publisher. c. only return them to the place of purchase for a

refund. d. not sell or return them.Copyright Cengage Learning. Powered by Cognero.

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59. Garrett makes and distributes copies of Here We Go Again, a movie copyrighted by Indie Motion Pictures, Inc. Garrett does this without Indie’s permission. He may be liable for a. damages, fines, or imprisonment. b. damages only. c. fines or imprisonment only. d. nothing.

60. In 2015, Kelly writes Like the Wind, a novel about marathoners and ultra marathoners. Kelly does not register the work with the appropriate government office. Under federal copyright law, Kelly’s work is protected a. for ten years. b. for twenty years. c. for the life of the author plus seventy years. d. not at all.

61. Edge is a video game featuring interactive extreme sports. The graphics used in the game are protected by a. copyright law. b. patent law. c. trademark law. d. none of the choices.

62. James buys a copy of the book Kangaroo Down, Sport. Later, after reading the book, James sells the book to his sister. James’s sale of the book is a. legal. b. legal only if the copyright has expired. c. legal only if he sells it for less than he paid for it. d. illegal.

63. Mace copies Nick’s book, Off the Beaten Path, in its entirety and sells it to Parkland Books, Inc., without Nick’s permission. Parkland publishes it under Mace’s name. This is a. copyright infringement. b. fair use. c. licensing. d. protected expression.

64. Milo publishes a book titled No Equals, which includes a chapter from Paige’s copyrighted book Olympic Champions. Milo’s use of the chapter is actionable provided that a. consumers are confused. b. Milo’s use is intentional. c. Milo’s use reproduces Paige’s chapter

exactly. d. Milo does not have Paige’s permission.

65. Creation Worx, Inc., develops, makes, and markets new computer programs for businesses and consumers. Generally, copyright protection extends to


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a. all aspects of the software. b. the “look and feel” of the software. c. those parts of the software that can be read by humans. d. all of the choices.

66. The idea for “Price + Profit,” an app that businesses can use to track their revenue, profit, and payroll, is protected by a. copyright law. b. patent law. c. none of the choices. d. trade secrets law.

67. Reprise Entertainment, Inc., a U.S. television and movie production company, files a suit against Substantivo TV, Ltd., a Mexican production firm, for infringement of intellectual property rights under Mexico’s national laws. Under the TRIPS agreement, Reprise is entitled to receive a. better treatment than Substantivo. b. the same treatment as

Substantivo. c. worse treatment than Substantivo. d. nothing.

68. Like most successful companies, Pads & Phones, Inc. (P&P), has trade secrets. The law protects those secrets if a. P&Pemployees do not divulge the information to outside parties. b. P&Pemployees do not handle confidential documents. c. P&Pemployees never leave the company’s employ. d. the information is unique and has value to a competitor.

69. The process behind the production of“AccountForIt,” a suite of business accounting and inventory software, is protected by a. copyright law. b. patent law. c. none of the choices. d. trade secrets law.

70. France and the United States are signatories of the Berne Convention. Alain, a citizen of France, publishes a book first in France and then in the United States. Alain’s copyright must be recognized by a. France only. b. France and the United States only. c. all of the signatories of the Berne Convention. d. none of the choices.

71. Hua plots a new Iron Man adventure and carefully and skillfully imitates the art of Marvel Comics to create an authentic-looking Iron Man graphic novel. Hua is not affiliated with the owners of the copyright to Iron Man. Can Hua pub-lish the novel as his own work without infringing on the owners’ copyright?


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72. College Copy Shop (CCS) compiles, copies, and sells reading materials to students on the instructions of their professors, who indicate which parts of which publications should be included. These include texts published by Deep Topics, Inc. CCS does not obtain the permission of Deep Topics, or any of the other original publishers of the copied materials, and does not pay royalties on the sales of the compilations. Deep Topics and others file a suit against CCS, alleging infringement of the plaintiffs’ intellectual property rights. Which type of intellectual property is involved in this situation? What is CCS’s likely defense? How is a court most likely to rule? Explain.


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Answer Key

1. False

2. False

3. False

4. True

5. True

6. False

7. False

8. False

9. True

10. False

11. False

12. False

13. True

14. False

15. True

16. True

17. True

18. False

19. True

20. True

21. True

22. True

23. True

24. False

25. False


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26. False

27. True

28. True

29. False

30. True

31. True

32. True

33. True

34. True

35. True

36. c

37. d

38. c

39. a

40. b

41. d

42. a

43. a

44. c

45. a

46. c

47. d

48. a

49. a

50. a

51. bCopyright Cengage Learning. Powered by Cognero.

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52. b

53. b

54. d

55. a

56. d

57. a

58. a

59. a

60. c

61. a

62. a

63. a

64. d

65. c

66. d

67. b

68. d

69. d

70. c

71. Probably not. When the form or expres-sion of an idea is copied, an infringement of copyright occurs. The repro-duction can constitute infringement even if it is not be exactly the same as the original or does not repro-duce the original in its entirety.The idea of a superhero crime fighter attired in an iron suit is not copyrightable, but the particular way in which an idea is expressed (in this case, in the character of Iron Man) is copy-rightable and may not be freely used by others.

72. The intellectual property at issue in this situation is copyright—specifically, of course, the copyrights of the publishers of the materials that CCS copies and sells without permission. CCS is likely to assert the “fair use” doctrine in its defense. This doctrine includes exceptions to the general requirement that an owner’s permission be obtained before copyrighted material can be copied. CCS is probably likely to argue that its compilations are excepted because they are dedicated to “educational” uses. A court is most likely to conclude, however, that the copying and selling of the materials is not a fair use, because CCS profits from their sale, which undercuts the potential market for the copyrighted publications from Copyright Cengage Learning. Powered by Cognero.

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which the copies are made. In determining fair use, a court considers four factors: the purpose and character of the use, the nature of the copyrighted work, the amount and substantiality of the portion used in relation to the copyrighted work as a whole, and the effect of the use on the potential market for or value of the copyrighted work. In this situation, the fourth factor is most significant and supports the conclusion that CCS’s use of the materials is not a fair use.


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