Business Law chapter 5 – Flashcards

The need to protect intellectual property is recognized in the Declaration of Independence.

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

A beverage company that competes with Coca-Cola Company cannot call its products "Koke."

The 1995 Federal Trademark Dilution Act allowed trademark owners to bring suit in federal court for trademark dilution.

A trademark can be diluted by the use of a similar mark.

A trademark does not need to be registered to support a trademark infringement action.

The states and the federal government provide for the registration of trademarks.

A fanciful use of ordinary words may be trademarked

A suggestive use of ordinary words may be trademarked.

A generic term is not protected under trademark law unless it acquires a secondary meaning.

A service mark distinguishes products used, or "put into service," by the government.

A certification mark distinguishes products approved, or "certified," by the government.

It is estimated that over 70 percent of the goods imported to the United States are counterfeit.

Trade names have the same legal protection as trademarks.

A trade name can be protected if it is unusual or fanciful.

A license permits the use of another's intellectual property for certain limited purposes.

The owner of intellectual property may put restrictions on the use of the intellectual property in a license agreement.

In cyberspace, trademarks are sometimes called cyber marks

In cyberspace, no two businesses can use the same domain name.

Cybersquatting occurs when a person repeatedly visits a business's website.

To be patentable, an invention, discovery, or design must be novel, useful and not obvious in light of current technology.

Patent infringement is a tort.

Foreign firms cannot obtain U.S. patent protection on items that they sell in the United States.

Copyright protection is automatic—registration is not required

A copyright owner must place a © or an ® on the work to have the work protected from copyright infringement.

It is possible to copyright an idea.

A copy does not need to be exactly the same as the original to infringe a copyright.

Downloading software or music into a computer's random access memory without authorization is copyright infringement.

A marketing technique can be a trade secret.

A customer list is not a trade secret.

Pricing information is not a trade secret.

Information that is not or cannot be protected under trademark, patent, or copyright law may be protected under the law of trade secrets.

Paula develops a new espresso machine that she names "Sure Shot." She also writes an operating manual for the machine. Paula can obtain trademark protection for a. the espresso machine. b. the "newness" of the espresso machine. c. the name "Sure Shot." d. the operating manual.

Trademarks are protected from use on noncompeting goods by a. the Federal Trademark Dilution Act. b. the America Invents Act. c. the Anticybersquatting Consumer Protection Act. d. the Copyright Act.

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

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

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.

In 2012, Online Marketing Corporation 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.

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.

Billy opens a bicycle shop that sells an innovative new kind of bicycle. He decides to call the bicycles "Bicycles." Billy extensively markets his product, has a high sales volume and becomes well known for selling Bicycles. The term Bicycle a. is automatically protected against trademark infringement. b. receives no protection against trademark infringement. c. can be registered as a trademark to obtain protection against trademark infringement. d. can be registered as a certification mark.

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.

Which of the following can not be registered as a trade name? a. Pear Blossom, Certified Public Accountant b. Apples & Oranges, Investment Partnership c. Banana Republic Clothing, Inc. d. Strawberries

Trek Transport Company uses a mark associated with its name to distinguish its services from those of other trucking firms. This mark is a. a certification mark. b. a collective mark. c. a service mark. d. a trade name.

Trevor's operates The Spicy Chocolatier Café chain of restaurants. "The Spicy Chocolatier Café" is a a. certification mark. b. collective mark. c. service mark. d. trade name.

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.

Jeannie runs a dude ranch called J Bar B Dude Ranch and has a Web site called www,jbarbduderanch.com. Ben starts another dude ranch and registers a Web site called www,jbarbduderanch.com. Ben is a. cybersquatting. b. cyberstalking. c. not doing anything illegal. d. counterfeiting.

E-Shopping Corporation inserts Fiesta Mall, Inc.'s trademark as a meta tag in E-Shopping's Web site's key-words field without Fiesta's permission in a manner that suggests Fiesta authorized the use. This is a. copyright infringement. b. patent infringement. c. trademark infringement. d. no infringement.

Ric designs a new tablet computer that he names "Sci Phi." He also writes the operating manual to be included with each final product. Ric can obtain patent protection for a. the tablet computer. b. the "newness" of the tablet computer. c. the name. d. the operating manual.

Ryan invents a pen that digitally "remembers" what is written or drawn with it. To obtain a patent for the pen, Ryan does not have to show that it is a. novel. b. marketable. c. useful. d. not obvious in light of current technology.

Zoe invents "All for One," new business inventory control software, and applies for a patent. If Zoe 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.

Sights Unseen, Inc., (SUI) sells telescopes with distinctively designed lenses and mirrors. Later, without SUI's permission, Telescopes Etc. Corporation begins to sell scopes with identical structures of lenses and mirrors. This is most likely a. copyright infringement. b. patent infringement. c. trademark infringement. d. not infringement.

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. b. patent infringement. c. trademark infringement. d. a theft of trade secrets.

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 that 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.

Stormclouds Inc. makes and markets its U.S. patented Tempest Tablet in the United States. Squalls Ltd., a Chinese firm, begins making and marketing the same product in China as Outburst Pad without Stormclouds's permission. Squalls is a. not guilty of patent infringement. b. guilty of patent infringement. c. guilty of trademark infringement. d. in violation of the America Invents Act.

Riley invents a new valve to cap undersea oil spills. He names the valve "Great Catch." He also writes the installation manual to be included with each valve. Riley can obtain copyright protection for a. the valve. b. the "newness" of the valve. c. the name. d. the installation manual.

Sayers is very clever and spends lots of time creating new things. Which of the following is not copyrightable? a. A sculpture of Sayers's horse b. A book about Sayers's life c. A movie about Sayers's life d. Sayers's idea for a new way to play the guitar

Go! is a handheld video game featuring races between imaginary creatures and vehicles. The graphics used in the game are protected by a. copyright law. b. patent law. c. trademark law. d. trade secrets law.

Elvin publishes a book titled First Place, which includes a chapter from Frank's copyrighted book Olympic Winners & Losers. Elvin's use of the chapter is actionable provided a. consumers are confused. b. Elvin's use is intentional. c. Elvin's use reproduces Frank's chapter exactly. d. Elvin does not have Frank's permission

Mace copies Nick's book, Mumbai Monsoon, 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.

James buys a copy of the book Downpour. Later, after reading the book, James sells it to his sister. Under the first sale doctrine, 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.

Joey reproduces Mina's copyrighted work Storm on the Mountain without paying royalties. Joey is most likely excepted from liability for copyright infringement under the "fair use" doctrine if a. Joey copies the entire work. b. Joey distributes the copies without charge to the public. c. Joey's use has no effect on the market for Mina's work. d. Joey's use is for a commercial purpose.

Megan goes to visit her friend Kathleen. While visiting, Megan downloads Kathleen's copy of Photoshop onto her computer's random access memory without Kathleen's permission. Megan is guilty of a. copyright infringement. b. patent infringement. c. cybersquatting. d. trademark dilution.

The idea for "On Your Mark," a computer game featuring world-class athletic competition in extreme and unique contests, is protected by a. copyright law. b. patent law. c. trademark law. d. trade secrets law.

Ewa is Diamond Financial Planners' most productive employee. She is dissatisfied with the commission structure, however, so she quits to work for Feldstar Investments, Inc. When she leaves Diamond's employ, she takes her list of Diamond's clients so that she can induce them to switch to Feldstar. Trade secrets law covers a. Diamond's list of clients. b. Ewa's performance. c. Feldstar's commission structure. d. none of the choices.

Caramello Chip & Cookie Corporation (4C) obtains, and gives its employees, a list of the customers of Sugar & Spice Sales, Inc. (3S). Under the law that applies to trade secrets, 4C's conduct is actionable provided a. consumers are confused. b. 4C's conduct is intentional. c. 4C uses the list. d. 4C does not have 3S's permission to use the list

Ross, an employee at Super Snowboard Company, is laid off. Before he exits Super's building, he e-mails the company's marketing campaign to Winter Sports Corporation, Super's competitor, without permission. This is a. copyright infringement. b. patent infringement. c. trademark infringement. d. a theft of trade secrets.