Chapter 11 Flashcards

1) Which of the following statements is true of intellectual property?

A) Intellectual property requires that certain types of information are not disclosed to the public.
B) The type of information is irrelevant in determining the time, effort, and money required to convert intellectual property to intangible assets.
C) The basic economic system of intellectual property is grounded in the idea of incentives.
D) There is little correlation between research and development (R&D) and intellectual property in determining the competitive advantage of a firm.
E) An economic system based on intellectual property presumes that the long-term benefits of increased information and investment are outweighed by the short-term costs

C) The basic economic system of intellectual property is grounded in the idea of incentives.

2) What is the definition of a trade secret?

A) A statutorily protected right in creative expression.
B) A statutorily created property right in a mark, word, picture, or design that attaches to goods and indicates their source.
C) A statutorily created property right in inventions and discoveries.
D) Any formula, pattern, machine, or process of manufacturing used in one’s business that may give the user to obtain an advantage over its competitors.
E) A legal doctrine giving someone protected rights in the distinctive overall appearance or look and feel of a product or service.

D) Any formula, pattern, machine, or process of manufacturing used in one’s business that may give the user to obtain an advantage over its competitors.

3) To violate another’s trade secret rights, one must __________.

A) misappropriate the information
B) use another’s information without permission
C) engage in unauthorized use of another’s information
D) come in contact with another’s intellectual property
E) engage in buying and selling of trade secrets

A) misappropriate the information

4) If a business wishes to protect its trade secrets, a first step is to __________.

A) maintain secrecy
B) put restrictions on what third parties can visit the business and what areas they will have access to
C) require third parties to sign non-disclosure agreements
D) conduct a trade secret audit to identify confidential knowledge-based resources
E) establish the existence of a trade secret

D) conduct a trade secret audit to identify confidential knowledge-based resources

5) Misappropriation of a trade secret occurs when __________.

A) a person is able to recreate the same information that the other considers to be a trade secret
B) a person recreates a product after looking at it and figuring out how it works or is formulated
C) a person uses another’s trade secret and confidential information with authorization
D) a person improperly acquires secret information through burglary, espionage, or computer hacking
E) a person uses his or her own knowledge and understanding to recreate what is another’s trade secret

D) a person improperly acquires secret information through burglary, espionage, or computer hacking

6) If a judge issues an order for a party to take a particular action or to cease from an action, the judge has ordered __________.

A) compensation
B) money damages
C) a sanction
D) an injunction
E) a fine

D) an injunction

7) Which of the following has been adopted by most states and provides a foundation for trade secret law?

A) Economic Espionage Act
B) Defend Trade Secrets Act
C) Uniform Trade Secrets Act
D) Anti-Piracy Act
E) Lanham Act

C) Uniform Trade Secrets Act

8) Which of the following statements is true of trade secrets?

A) A first step involved in the protection of trade secrets deals with preservation of secrecy through computer systems.
B) Establishing the existence of a trade secret is a critical step in the control of valuable knowledge resources.
C) Trade secrets must be unique.
D) Companies lose property in knowledge-based resources when suppliers, customers, repair technicians, or visitors come into contact with their trade secrets.
E) Reasonable measures in the preservation of trade secrets do not include physically locking away written material.

B) Establishing the existence of a trade secret is a critical step in the control of valuable knowledge resources.

9) Which of the following statements is true of misappropriation?

A) Innocently acquiring a secret from another without having knowledge of its theft is still an act of misappropriation.
B) If, through one’s own efforts, one is able to recreate the same information that another considers to be a trade secret, misappropriation has occurred.
C) If one acquires a secret from another who has a duty to maintain secrecy, and one knows of that duty, misappropriation has occurred.
D) Knowledge or performance of a duty to maintain secrecy is irrelevant to the demonstration of misappropriation.
E) Recreation of the same information that another considers a trade secret is treated as misappropriation.

C) If one acquires a secret from another who has a duty to maintain secrecy, and one knows of that duty, misappropriation has occurred.

10) Which of the following statements is true of the Defend Trade Secrets Act (DTSA)?

A) The DTSA replaced the Economic Espionage Act.
B) The DTSA does not provide access to the federal courts even if diversity of citizenship does not exist.
C) The DTSA does not adopt the Economic Espionage Act’s definition of trade secrets.
D) The DTSA does not provide a civil seizure mechanism that allows a trade secret owner to secure property.
E) The DTSA carves out whistle-blower immunity for those who disclose secrets when reporting suspected violations of law.

E) The DTSA carves out whistle-blower immunity for those who disclose secrets when reporting suspected violations of law.

11) Which of the following accurately describes patents?

A) The Venetian Patent Act of 1474 is a source for many principles of modern patent law.
B) Patents are created for an indefinite period of time.
C) An original and ornamental design for an article of manufacture will be governed by a utility patent.
D) Nonobvious and useful processes and machines will be governed by design patents.
E) Plant patents last for 14 years from issue under the Economic Espionage Act.

A) The Venetian Patent Act of 1474 is a source for many principles of modern patent law.

12) Which of the following statements is true of design patents?

A) The duration of a design patent is 15 years from the date of issue.
B) It is given to products that have undergone new compositions of matter or improvements.
C) It is applied to useful, functional inventions.
D) It also covers all other inventions that are under the purview of plant patents.
E) It excludes the appearance of a product in considering the patent for a product.

A) The duration of a design patent is 15 years from the date of issue.

13) In the context of utility patents, the term “claims” refers to __________.

A) a property right in a plant that can be reproduced asexually
B) a mark representing membership in a certain organization
C) the details about the subject matter that an inventor regards as the invention
D) a mark associated with a service
E) a function of trademarks

C) the details about the subject matter that an inventor regards as the invention

14) In the context of patentable subject matter, which of the following refers to a method for doing things?

A) Claim
B) Process
C) Infringement
D) Recognizability
E) Tarnishment

15) A(n) __________ patent applies to useful, functional inventions.

A) design
B) style
C) plant
D) ornamental
E) utility

16) What individual is assigned by The Patent and Trademark Office (PTO) to consider a patent application?

A) Claims examiner
B) Patent reviewer
C) Claims officer
D) Intellectual property attorney
E) Patent examiner

E) Patent examiner

17) In the context of patentable subject matter, which of the following characteristics indicates that the invention is new and different from the prior art?

A) Nonobviousness
B) Utility
C) Novelty
D) Tarnishment
E) Preemption

18) Harry files an application and receives a patent from the U.S. Patent Office for an abstract idea. He tells his friend Sally about his idea. A few months later, Sally attempts to sell Harry’s idea as her own. Harry files a lawsuit against Sally for patent infringement. Which of the following is true of the outcome of Harry’s case?

A) Harry will lose because Sally can accurately assert that he does not have a valid patent.
B) Harry will win because Sally has infringed upon his patent.
C) The court is not the correct venue for Harry’s case, and it will refer the case to the U.S. Patent Office.
D) Harry will be able to claim that he has a valid patent, but Sally will win because she has not infringed upon Harry’s patent.
E) Neither Harry nor Sally have valid claims, and the court will dismiss the case.

A) Harry will lose because Sally can accurately assert that he does not have a valid patent.

19) Which of the following types of intellectual property can be assigned to the invention of a plant that can be reproduced asexually?

A) Patent
B) Copyright
C) Trademark
D) Trade name
E) Brand mark

20) Which of the following statements is true of patent enforcement?

A) The explicit purpose of patent law is to maintain secrecy of inventions for an indefinite time period.
B) Upon the expiration of a patent, an invention is removed from the public domain.
C) Beyond the duration of a patent, the owner can sue those who infringe on it.
D) Multiple intellectual property rights can cover the same article.
E) Patent laws include the right to use the invention.

D) Multiple intellectual property rights can cover the same article.

21) __________ refers to the ability of an invention to produce surprising or unexpected results; that is, results not anticipated by prior art.

A) Novation
B) Nonobviousness
C) Preemption
D) Utility
E) Tarnishment

22) Which of the following defenses can an alleged infringer use to prove that the patent is invalid?

A) The invention is novel.
B) The invention has utility.
C) The invention was previously unknown.
D) The invention is obvious.
E) The invention has produced unexpected results

D) The invention is obvious.

23) The one-year grace period applies to __________ law.

A) trademark
B) patent
C) copyright
D) trade secret
E) collective mark

24) Which of the following is true when a patent expires?

A) It comes under the purview of the Supreme Court to restrict its use by the public.
B) It is in the public domain and others may use it without permission from the patentee.
C) It is put aside for someone else to acquire.
D) It will be reviewed and reassigned to the same patentee.
E) It will be declared null and void and the invention will be declared useless.

B) It is in the public domain and others may use it without permission from the patentee.

25) In the context of trademarks, another term for recognizability is __________.

A) preemption
B) uniqueness
C) distinctiveness
D) obviousness
E) function

26) Hillward Bakers Incorporated (Hillward) has been using a logo with the letters “HB” in a blue color with a baker’s hat above these letters since its inception ten years ago. Customers connect this logo with Hillward Bakery. Hobert Bakers Incorporated (Hobert), a newly-opened bakery and confectionery chain, uses the same logo. Hillward has not registered its logo but chooses to sue Hobert. Which of the following is true of this case?

A) Hillward cannot sue Hobert since the logo has not been registered as a trademark.
B) Hillward can sue Hobert since the logo has been used by Hillward and is associated with it.
C) Hobert can defend against the suit by claiming that Hillward created something that lacks utility and cannot be trademarked.
D) Hobert can defend against the suit by claiming that Hillward created something that was very obvious.
E) Hillward cannot sue Hobert because logos cannot be patented or trademarked.

B) Hillward can sue Hobert since the logo has been used by Hillward and is associated with it.