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Solution Manual for Cengage Advantage Books Business

Law Text and Exercises 8th Edition by Miller and Hollowell
ISBN 1305509609 9781305509603
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Chapter 6 Intellectual Property

TRUEFALSE

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

(A) True

(B) False

Answer : (B)

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

Answer : (B)

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

(A) True

(B) False

Answer : (B)

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 : (A)

6. States do not have trademark statutes.

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

(A) True

(B) False

Answer : (A)

6. States do not have trademark statutes.

(A) True (B)

False

Answer : (B)

7. An arbitrary use of ordinary words may not be trademarked.

(A) True

(B) False

Answer : (B)

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 : (B)

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

(A) True

(B) False

Answer : (A)

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

(A) True (B)

False

Answer : (B)

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

(A) True

(B) False

Answer : (B)
12. A certification mark distinguishes products approved, or "certified," by the government.

(A) True

(B) False

Answer : (B)

13. Trade names have the same legal protection as trademarks.

(A) True

(B) False

Answer : (A)

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

(A) True

(B) False

Answer : (A)

15. A patent applicant must demonstrate that an invention is "commercially practicable" to receive a
patent.

(A) True (B)

False

Answer : (B)

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

(A) True

(B) False

Answer : (B)

17. With a few exceptions, almost anything is patentable.

(A) True

(B) False

Answer : (A)
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

Answer : (B)

19. A license permits the use of intellectual property for certain limited purposes.

(A) True

(B) False

Answer : (A)

20. It is possible to copyright an idea.

(A) True

(B) False

Answer : (B)

21. An exception to liability for copyright infringement is made under the "fair use" doctrine.

(A) True

(B) False

Answer : (A)

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 : (A)

23. Copyright protection is automatic-registration is not required.

(A) True

(B) False

Answer : (A)
24. All aspects of software are protected by copyright law.

(A) True

(B) False

Answer : (B)

25. A copy must be exactly the same as the original to infringe a copyright.

(A) True

(B) False

Answer : (B)

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

(A) True

(B) False

Answer : (B)

27. A marketing technique can be a trade secret.

(A) True

(B) False

Answer : (A)

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

(A) True

(B) False

Answer : (A)

29. Production techniques are not trade secrets.

(A) True

(B) False

Answer : (B)

30. Protection of trade secrets extends both to ideas and to their expression.
(A) True

(B) False

Answer : (A)

31. The theft of trade secrets is a federal crime.

(A) True

(B) False

Answer : (A)

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

Answer : (B)

33. Each member country of the TRIPS agreement must include in its domestic laws intellectual
property rights.

(A) True (B)

False

Answer : (A)

34. The TRIPS agreement covers computer programs.

(A) True

(B) False

Answer : (A)

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

(A) True (B)

False

Answer : (A)
MULTICHOICE

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 Mee."

(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. 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.

Answer : (A)

40. Ric designs a new tablet computer, which he names "Sci Phi." He also writes the operating
manual to be included with each final product. Ric could obtain patent protection for

(A) the tablet computer.

(B) the "newness" of the tablet computer.

(C) the name.

(D) the operating manual.

Answer : (A)

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.

Answer : (D)

42. 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.

(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.

Answer : (B)

43. 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)

44. In 2015, Data Sales, 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)

45. 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)

46. 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.

Answer : (A)

47. 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) none of the choices.

Answer : (C)

48. Chris operates the Devil's Brew chain of coffee stands. "Devil's Brew" is

(A) a certification mark.

(B) none of the choices.

(C) a service mark.

(D) a trade name.

Answer : (D)

49. Resurgent Corporation designs a new tablet that the firm names "SyFye." The company can
obtain patent protection for

(A) the tablet.

(B) the "newness" of 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) a likelihood of consumer confusion.

(C) trademark infringement.

(D) trademark dilution.

Answer : (A)

51. GreatGro, Inc., makes genetically modified seeds with properties that are identical 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.

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.

(B) patent infringement.

(C) trademark infringement.

(D) a theft of trade secrets.

Answer : (B)

53. 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.

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. Zoe applies nano technology to invent a device that reduces the half-life of spent plutonium rods
used in nuclear-fuel reactors. She names the device "Halftime." She also writes Nano Nukes, a book
about this invention and other uses for nano technology. Zoe can obtain copyright protection for

(A) the device.

(B) nano technology.

(C) the name "Halftime."

(D) the book Nano Nukes.

Answer : (D)

56. In his recording "Nothing 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.

Answer : (A)

57. 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)

58. 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)

59. 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) forever.

Answer : (C)

60. 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)

61. James buys a copy of the book The Black Stallion. 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.

Answer : (A)

62. 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.

Answer : (A)

63. 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.

Answer : (D)

64. 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)

65. 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.

Answer : (A)

66. The idea for "Price + Profit," an app that businesses can use to control their revenue, profit, and
payroll, is protected by

(A) copyright law.

(B) patent law.

(C) trademark law.

(D) trade secrets law.

Answer : (D)

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.

Answer : (B)

68. 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)

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) trademark law.

(D) trade secrets law.

Answer : (D)

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.

Answer : (C)

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?

Graders Info :

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. 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.

Graders Info :

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 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.