Andersons business law and the legal environment comprehensive 23rd edition twomey test bank

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Chapter 09—INTELLECTUAL PROPERTY RIGHTS AND THE INTERNET True / False 1. Trade dress can be any word, name, symbol, device, or combination of these used to identify a product. a. True b. False ANSWER: False 2. Trademarks may be used to protect the exclusive right to identify either products or services. a. True b. False ANSWER: False 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: False 4. Trademarks and service marks are recorded with the Register of Copyrights. a. True b. False ANSWER: False 5. Descriptive terms such as locations and colors are never subject to trademark protections. a. True b. False ANSWER: False 6. If other persons are permitted to use a trademark, it will lose its exclusive character and become generic. a. True b. False ANSWER: True 7. Trade dress refers to the packaging look and overall image of a product. a. True b. False ANSWER: True 8. Protection for trade dress is available under the Lanham Act. a. True b. False ANSWER: True 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.

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Chapter 09—INTELLECTUAL PROPERTY RIGHTS AND THE INTERNET a. True b. False ANSWER: True 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: True 11. A copyright prevents the copying of an idea. a. True b. False ANSWER: False 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: True 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: False 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: False 15. The Berne Convention requires all works published after March 1, 1989 to contain a notice of copyright. a. True b. False ANSWER: False 16. In order for a work to be copyrightable, it must possess a significant amount of creativity. a. True b. False ANSWER: False 17. An owner of a copyright may license some of his or her rights to another in exchange for royalty payments. a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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Chapter 09—INTELLECTUAL PROPERTY RIGHTS AND THE INTERNET 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: False 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: False 20. Although processes and machines are eligible for patent protection, manufactures and compositions of matter are not. a. True b. False ANSWER: False 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: True 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 ANSWER: True 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: False 24. In limited circumstances customer lists are protected under trade secret laws. a. True b. False ANSWER: True 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: False Copyright Cengage Learning. Powered by Cognero.

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Chapter 09—INTELLECTUAL PROPERTY RIGHTS AND THE INTERNET 26. Stealing trade secrets can result in fines, but not imprisonment. a. True b. False ANSWER: False 27. Written computer programs are not given the same protection as other copyrighted material. a. True b. False ANSWER: False 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 b. False ANSWER: True 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: True 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: False Multiple Choice 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.

ANSWER: d 33. It is important to protect trade dress against adoption by a competitor failure to protect the mark can: Copyright Cengage Learning. Powered by Cognero.

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Chapter 09—INTELLECTUAL PROPERTY RIGHTS AND THE INTERNET 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 37. Which 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.

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Chapter 09—INTELLECTUAL PROPERTY RIGHTS AND THE INTERNET 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.

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Chapter 09—INTELLECTUAL PROPERTY RIGHTS AND THE INTERNET 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 Copyright Cengage Learning. Powered by Cognero.

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Chapter 09—INTELLECTUAL PROPERTY RIGHTS AND THE INTERNET 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?

ANSWER: 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?

ANSWER: 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.

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