Name: Class: Date:
Chapter 08: Intellectual Property Rights
True / False
1. The need to protect intellectual property is recognized in the Declaration of Independence.
a. True
b. False
ANSWER: False
2. An applicant cannot register a trademark on the basis of an intention to use the mark in commerce.
a. True
b. False
ANSWER: False
3. A famous trademark may be diluted only by the unauthorized use of an identical mark.
a. True
b. False
ANSWER: 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
ANSWER: True
5. A trademark must be registered to support a trademark infringement action.
a. True
b. False
ANSWER: False
6. States do not have trademark statutes.
a. True
b. False
ANSWER: False
7. An arbitrary use of ordinary words may not be trademarked.
a. True
b. False
ANSWER: False
8. To succeed 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
ANSWER: False
9. Trade names have the same legal protection as trademarks.
Copyright Cengage Learning. Powered by Cognero. Page 1
Name: Class: Date:
Chapter 08: Intellectual Property Rights
a. True
b. False
ANSWER: True
10. Counterfeit goods are in fact sometimes genuine.
a. True
b. False
ANSWER: False
11. A service mark distinguishes products used by those in public service.
a. True
b. False
ANSWER: False
12. A certification mark distinguishes products approved, or “certified,” by the government.
a. True
b. False
ANSWER: False
13. A personal name is not protected under trademark law if it acquires a secondary meaning.
a. True
b. False
ANSWER: False
14. A trade name cannot be protected if it is unusual.
a. True
b. False
ANSWER: False
15. A patent applicant must demonstrate that an invention is marketable to receive a patent.
a. True
b. False
ANSWER: False
16. Patent infringement occurs only if all features or parts of a product are copied.
a. True
b. False
ANSWER: False
17. With a few exceptions, almost anything is patentable.
a. True
b. False
ANSWER: True
18. The first person to invent a product obtains the patent rights rather than the first person to file an application for a
Copyright Cengage Learning. Powered by Cognero. Page 2
Name: Class: Date:
Chapter 08: Intellectual Property Rights
patent.
a. True
b. False
ANSWER: False
19. A license permits the use of intellectual property for certain limited purposes.
a. True
b. False
ANSWER: True
20. It is not possible to copyright an idea.
a. True
b. False
ANSWER: True
21. An exception to liability for copyright infringement is made under the “fair use” doctrine.
a. True
b. False
ANSWER: True
22. A person can reproduce copyrighted material for purposes such as teaching, including multiple copies for classroom
use, without paying royalties.
a. True
b. False
ANSWER: True
23. Copyright protection is automatic—registration is not required.
a. True
b. False
ANSWER: True
24. All aspects of software are protected by copyright law.
a. True
b. False
ANSWER: False
25. A copy must be exactly the same as the original to infringe a copyright.
a. True
b. False
ANSWER: False
26. A person who buys a copyrighted work cannot sell it to someone else.
a. True
b. False
ANSWER: False
Copyright Cengage Learning. Powered by Cognero. Page 3
Name: Class: Date:
Chapter 08: Intellectual Property Rights
27. A marketing technique can be a trade secret.
a. True
b. False
ANSWER: True
28. Theft of confidential data by industrial espionage is a theft of trade secrets.
a. True
b. False
ANSWER: True
29. Production techniques are not trade secrets.
a. True
b. False
ANSWER: False
30. Protection of trade secrets extends both to ideas and to their expression.
a. True
b. False
ANSWER: True
31. The theft of trade secrets is a federal crime.
a. True
b. False
ANSWER: True
32. If anyone who is a citizen of a country that has not signed the Berne Convention first publishes a book in a signatory
country, all other signatory countries must recognize the author’s copyright.
a. True
b. False
ANSWER: True
33. Each member country of the TRIPS agreement must include in its domestic laws intellectual property rights.
a. True
b. False
ANSWER: True
34. The TRIPS agreement covers computer programs.
a. True
b. False
ANSWER: True
35. The Anti-Counterfeiting Trade Agreement applies to pirated, copyrighted works being distributed via the Internet.
a. True
b. False
Copyright Cengage Learning. Powered by Cognero. Page 4
Name: Class: Date:
Chapter 08: Intellectual Property Rights
ANSWER: True
Multiple Choice
36. AllforOne Inc. develops a new phone that the company names “OneforAll.” AllforOne can obtain trademark
protection for
a. the phone.
b. the “newness” of the device.
c. the name “OneforAll.”
d. none of the choices.
ANSWER: c
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.
ANSWER: d
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.
ANSWER: c
39. Jon Joans decides to use his personal name for a line of clothing he is developing. Whether or not the name Jon Joans
acquires a secondary meaning will depend on
a. how extensively Jon markets his line of clothing.
b. the market for Jon’s line of clothing.
c. the number of clothing sales Jon makes.
d. all of the choices are correct.
ANSWER: d
40. From Southeast Asia, Tai Ltd. exports genuine trademarked goods to the United States. Tai also makes labels bearing
another firm’s trademark, ships the labels to another location, and then affixes them to an inferior product. Tai sells these
goods to retailers who are unaware that the marks are counterfeit. It is a crime to
a. import genuine trademarked goods.
b. traffic in counterfeit packaging.
c. sell counterfeit versions of brand-name products in foreign countries.
d. unknowingly buy goods with a counterfeit mark.
ANSWER: b
Copyright Cengage Learning. Powered by Cognero. Page 5
Name: Class: Date:
Chapter 08: Intellectual Property Rights
41. Bubbly Cola features Sparkly Cola’s trademark without its owner’s permission. Bubbly’s use of the mark is actionable
for trademark infringement 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.
ANSWER: a
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.
ANSWER: a
43. Data Marketing, 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.
ANSWER: a
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. a trade name.
ANSWER: c
45. Sweetleaf 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. none of the choices.
d. trade dress.
ANSWER: c
46. Constellation Research Inc. uses a mark associated with its name to distinguish its services from those of other tech
firms. This mark is
a. a certification mark.
b. a collective mark.
c. a service mark.
d. trade dress.
Copyright Cengage Learning. Powered by Cognero. Page 6
Name: Class: Date:
Chapter 08: Intellectual Property Rights
ANSWER: c
47. Chris operates the Devil’s Brew chain of coffee stands. “Devil’s Brew” is a
a. certification mark.
b. collective mark.
c. service mark.
d. trade name.
ANSWER: d
48. Sui Generis, Inc. (SGI), designs and sells solar energy cells to research laboratories, commercial businesses, and
individual consumers. Later, without SGI’s permission, Mimic Company begins to sell cells of identical design to the
same markets. This is most likely
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. none of the choices.
ANSWER: b
49. Resurgent Corporation designs a new mobile device that the firm names “SyFye.” The company can obtain patent
protection for
a. the device.
b. the idea for the device.
c. the name “SyFye.”
d. none of the choices.
ANSWER: a
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.
ANSWER: a
51. Gro, Inc., makes genetically modified seeds with properties that are identical to Harvest Corporation’s patented seeds,
without Harvest’s permission. This is most likely
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. not infringement.
ANSWER: b
52. Gas Up, Inc., designs, makes, and sells a fuel injection system that copies Hybrid Corporation’s design without
Hybrid’s permission. This is most likely
a. copyright infringement.
Copyright Cengage Learning. Powered by Cognero. Page 7
Name: Class: Date:
Chapter 08: Intellectual Property Rights
b. patent infringement.
c. trademark infringement.
d. a theft of trade secrets.
ANSWER: b
53. Louie invents “Market Up,” new business inventory control software, and applies for a patent. If Louie is granted a
patent, it will protect the product
a. for ten years.
b. for twenty years.
c. for the life of Louie plus seventy years.
d. until the next software upgrade.
ANSWER: b
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.
ANSWER: d
55. Mary Kate Inc. 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.
ANSWER: a
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.
ANSWER: d
57. In his recording “Nothing Nu 4U,” 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.
ANSWER: a
Copyright Cengage Learning. Powered by Cognero. Page 8
Name: Class: Date:
Chapter 08: Intellectual Property Rights
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.
ANSWER: a
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.
ANSWER: a
60. In 2017, 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. until a revised or updated edition is issued.
ANSWER: c
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.
ANSWER: a
62. Galileo buys a copy of the book Hip Hop. Later, after reading the book, Galileo sells the book to his sister Inez. This
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.
ANSWER: a
63. Mace copies Nick’s book, Off the Road, 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.
Copyright Cengage Learning. Powered by Cognero. Page 9
Name: Class: Date:
Chapter 08: Intellectual Property Rights
d. protected expression.
ANSWER: a
64. Marlo publishes a book titled No Equals, which includes a chapter from Paige’s copyrighted book Olympic
Champions. Marlo’s use of the chapter is actionable provided that
a. consumers are confused.
b. Marlo’s use is intentional.
c. Marlo’s use reproduces Paige’s chapter exactly.
d. Marlo’s does not have Paige’s permission.
ANSWER: d
65. Creation Worx, Inc., develops, makes, and markets new computer programs for businesses and consumers. Generally,
copyright protection extends to
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.
ANSWER: c
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.
ANSWER: d
67. Like most successful companies, Pads & Phones, Inc. (P&P), has trade secrets. The law protects those secrets if
a. P&P employees do not divulge the information to outside parties.
b. P&P employees do not handle confidential documents.
c. P&P employees never leave the company’s employ.
d. the information is unique and has value to a competitor.
ANSWER: d
68. The process behind the production of “Account Inc.,” 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.
ANSWER: d
69. Reprise, Inc., a U.S. video 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.
Copyright Cengage Learning. Powered by Cognero. Page 10
Name: Class: Date:
Chapter 08: Intellectual Property Rights
b. the same treatment as Substantivo.
c. worse treatment than Substantivo.
d. nothing.
ANSWER: b
70. Ky downloads and sells, in international markets via the Internet, e-textbooks without the authors’ or publishers’
permission. The international treaty that applies to pirated copyrighted works being distributed via the Internet is
a. the Federal Trademark Dilution Act.
b. the Madrid Protocol.
c. the Trade-Related Aspects of Intellectual Property Rights agreement.
d. the Anti-Counterfeiting Trade Agreement.
ANSWER: d
Essay
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
publish the novel as his own work without infringing on the owners’ copyright?
ANSWER: Probably not. When the form or expression of an idea is copied, an infringement of copyright occurs. The
reproduction can constitute infringement even if it is not be exactly the same as the original or does not
reproduce 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 copyrightable and may not be freely
used by others.
72. Duplos College Bookstore compiles, copies, and sells reading materials to students. The compilations are prepared on
the instructions of professors, who indicate which parts of which publications should be included for their students. The
copied materials include texts published by Ebooks, Inc. Duplos does not obtain the permission of Ebooks, or any of the
other original publishers of the copied materials, and does not pay royalties on the sales of the compilations. Ebooks and
others file a suit against Duplos, alleging infringement of their intellectual property rights. Which type of intellectual
property is involved in this situation? What is Duplos’s likely defense? How is a court most likely to rule? Explain.
ANSWER: The intellectual property at issue in this situation is copyright—specifically, of course, the copyrights of the
publishers of the materials that Duplos copies and sells without permission.
Duplos is likely to assert the “fair use” doctrine in its defense. This doctrine allow exceptions to the general
requirement that an owner’s permission be obtained before copyrighted material can be copied. Duplos is
likely to argue that its compilations are excepted because they are dedicated to “educational” uses.
A court is most likely to conclude, however, that Duplos’s copying and selling of the materials is not a fair
use, because Duplos profits from the sales, which undercut the potential market for the copyrighted
publications from 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 Duplos’s use of the materials is not a fair use.
Copyright Cengage Learning. Powered by Cognero. Page 11