Entrepreneurship: Successfully Launching New Ventures, Ventures, 5e (Barringer/Ireland) Chapter 12 The Importance of Intellectual Property Property
1) The opening feature focuses on DripCatch, a company that makes a device that catches water that drips off of glassware when it comes out of the dishwasher. The central form of intellectual property that DripCatch is hoping to benefit from is a(n) . !) patent ") #nternet domain name C) license D) trademark $) copyright !nswer% ! Diff% & 'age ef% *+ -% 1&.1% Define the term intellectual intellectual property and describe its its importance. !!C"% !nalytical Thinking &) /hich of the following is an e0ample of intellectual property !) DripCatch2s cash reserves ") The computer that you use C) 3ike2s swoosh logo D) 4nited2s fleet of planes $) 5oogle2s head6uarters head 6uarters in 7ountain 8iew, iew, California !nswer% C Diff% 1 'age ef% *9 -% 1&.1% Define the term intellectual intellectual property and describe its its importance. !!C"% eflective Thinking +) /hich of the following is not an e0ample of intellectual property !) 'roactiv2s formula for acne medication ") !pple2s trademark C) #nternet domain name www.dripcatch.com www.dripcatch.com D) 7icrosoft2s /indows operating system $) ! computer monitor !nswer% $ Diff% & 'age ef% *9 -% 1&.1% Define the term intellectual intellectual property and describe its its importance. !!C"% eflective Thinking
1 Copyright : &*1; 'earson $ducation, #nc.
) /hich of the following was not identified in the te0tbook as one of the common mistakes that entrepreneurs make regarding intellectual property !) 3ot fully recogni
in?house> $) rightfully belongs to the firm or the employees who developed it !nswer% ! Diff% & 'age ef% *@ -% 1&.1% Define the term intellectual property and describe its importance. !!C"% !nalytical Thinking ;) /hich of the following are the four key forms of intellectual property protection !) 'atents, copyrights, trademarks, and trade secrets ") Discoveries, covenants, trademarks, patents C) 'atents, official documents, copyrights, inventions D) Discoveries, #nternet domain names, innovations, trademarks $) Convents, inventions, opportunities, and copyrights !nswer% ! Diff% 1 'age ef% *@ -% 1&.1% Define the term intellectual property and describe its importance. !!C"% eflective Thinking @) /hich of the following is not one of the four key forms of intellectual property protection !) #nnovations ") Copyrights C) Trademarks D) Trade secrets $) 'atents !nswer% ! Diff% 1 'age ef% *@ -% 1&.1% Define the term intellectual property and describe its importance. !!C"% eflective Thinking & Copyright : &*1; 'earson $ducation, #nc.
A) #ntellectual property is any product of human intellect that is intangible but has value in the marketplace. !nswer% T4$ Diff% 1 'age ef% *9 -% 1&.1% Define the term intellectual property and describe its importance. !!C"% eflective Thinking B) 'atents, trademarks, copyrights, and licenses are the four key forms of intellectual property. !nswer% =!$ Diff% 1 'age ef% *@ -% 1&.1% Define the term intellectual property and describe its importance. !!C"% !nalytical Thinking 1*) /hat is intellectual property /hy is it called >intellectual> property /hy is intellectual property such an important issue for entrepreneurial firms !nswer% #ntellectual property is any product of human intellect that is intangible but has value in the marketplace. #t is called >intellectual> property because it is the product of human imagination, creativity, and inventiveness. Traditionally, businesses have thought of their physical assets, such as land, buildings, and e6uipment, as their most important assets. #ncreasingly, however, a firm2s intellectual assets, which include inventions, trademarks, brands, and methods of doing business, are their most valuable assets. #ntellectual property is particularly important to entrepreneurial firms, because many firms begin with an idea (based on an invention or a new method for doing business), and their idea represents their most valuable assets (and source of competitive advantage). #t is nearly impossible for an entrepreneurial firm to beat an established firm based on physical assets. $ntrepreneurial firms, however, can >outthink> established firms, which involves intellectual assets. Diff% 1 'age ef% *9 -% 1&.1% Define the term intellectual property and describe its importance. !!C"% eflective Thinking 11) /hat are the two primary rules of thumb for determining whether intellectual property protection should be pursued for a particular intellectual asset !nswer% =irst, a firm should determine whether the intellectual property in 6uestion is directly related to its competitive advantage. econd, a firm should determine whether the item has independent value in the marketplace. #f either or both of these conditions e0ist, intellectual property protection for an asset should be strongly considered. Diff% & 'age ef% *@ -% 1&.1% Define the term intellectual property and describe its importance. !!C"% eflective Thinking
+ Copyright : &*1; 'earson $ducation, #nc.
1&) ! grant from the federal government conferring the rights to e0clude others from making, selling, or using an invention for a specific period of time is referred to as a(n) . !) trademark ") patent C) idea secret D) innovation $) copyright !nswer% " Diff% 1 'age ef% *A -% 1&.&% $0plain what a patent is and describe different types of patents. !!C"% !nalytical Thinking 1+) /hich form of intellectual property protection is the only one e 0pressly mentioned in the original articles of the 4.. Constitution !) !ssurances ") 'atents C) Copyrights D) Trade secrets $) Trademarks !nswer% " Diff% + 'age ef% *A -% 1&.&% $0plain what a patent is and describe different types of patents. !!C"% !nalytical Thinking 1) The first patent, which was granted for a process of making potash, an ingredient in fertili
Copyright : &*1; 'earson $ducation, #nc.
1;) ince the first patent was granted, there have been over patents granted in the 4nited tates. !) 9&;,*** ") &.+ million C) .; million D) A.@ million $) 1&.& million !nswer% D Diff% + 'age ef% *B -% 1&.&% $0plain what a patent is and describe different types of patents. !!C"% eflective Thinking 1@) /hich of the following selections correctly identifies the three types of patents !) 7anufacturingE processE plant ") 4sefulnessE purposeE genetic C) $0plicitE implicitE plant D) 4tilityE designE plant $) 7anufacturingE serviceE other !nswer% D Diff% & 'age ef% 1* -% 1&.&% $0plain what a patent is and describe different types of patents. !!C"% !nalytical Thinking 1A) patents are the most common type of patent and cover what we generally think of as new inventions. !) 8alue ") 'roduct C) 7ethod D) 4tility $) Design !nswer% D Diff% & 'age ef% 1* -% 1&.&% $0plain what a patent is and describe different types of patents. !!C"% eflective Thinking 1B) !maname?your?price> business model are e0amples of patents. !) copyright e0tension ") utility C) business techni6ue D) trademark e0tension $) business method !nswer% $ Diff% & 'age ef% 1* -% 1&.&% $0plain what a patent is and describe different types of patents. !!C"% eflective Thinking
9 Copyright : &*1; 'earson $ducation, #nc.
&*) There are three basic re6uirements for a patent to be granted. The subFect of the patent application must be . !) useful, difficult to copy, and novel in relation to prior arts in the field ") based on cutting edge science or technology, not obvious to a person of ordinary skill in the field, and rare C) useful, novel in relation to prior arts in the field, and not obvious to a person of ordinary skill in the field D) rare, difficult to copy, and not obvious to a person of ordinary skill in the field $) useful, scientific, and novel in relation to p rior arts in the field !nswer% C Diff% + 'age ef% 1* -% 1&.&% $0plain what a patent is and describe different types of patents. !!C"% eflective Thinking &1) The term of a utility patent is years from the date of the . !) @E patent is granted ") 19E initial application C) 19E patent is granted D) &*E initial application $) &*E patent is granted !nswer% D Diff% & 'age ef% 11 -% 1&.&% $0plain what a patent is and describe different types of patents. !!C"% eflective Thinking &&) patents are the second most common type of patent and cover the invention of new, original, and ornamental designs for manufactured products. !) !esthetic ") 4tility C) 8isual D) "lueprint $) Design !nswer% $ Diff% & 'age ef% 11 -% 1&.&% $0plain what a patent is and describe different types of patents. !!C"% !nalytical Thinking
; Copyright : &*1; 'earson $ducation, #nc.
&+) ! utility patent is good for years from the date of the original application, a design patent is good for years from the date the patent is granted, and a plant patent is good for years from the date of the original application. !) 1E 1E &* ") &*E &*E 1 C) &*E &*E &* D) &*E 1E &* $) 1E &*E 1 !nswer% D Diff% + 'age ef% 11 -% 1&.&% $0plain what a patent is and describe different types of patents. !!C"% !pplication of nowledge &) #n terms of priority in filing a patent application, the 4nited tates uses a first?to? system. !) file ") invent C) manufacture D) sell $) validate !nswer% ! Diff% + 'age ef% 1+ -% 1&.&% $0plain what a patent is and describe different types of patents. !!C"% eflective Thinking &9) 'atent takes place when one party engages in the unauthori
@ Copyright : &*1; 'earson $ducation, #nc.
&;) The avvy $ntrepreneurial =irm feature in Chapter 1& focused on provisional patent applications. The main point of the feature is to illustrate that filing a provisional patent application effectively takes . !) substantial financial resources ") a substantial commitment of time and effort C) very little effort D) some finesse $) substantial e0pertise !nswer% D Diff% + 'age ef% 19 -% 1&.&% $0plain what a patent is and describe different types of patents. !!C"% !pplication of nowledge &@) ! patent is a grant from the federal government conferring the rights to e0clude others from making, selling, or using an invention for the term of the trademark. !nswer% T4$ Diff% 1 'age ef% *A -% 1&.&% $0plain what a patent is and describe different types of patents. !!C"% eflective Thinking &A) The average time for the approval of a patent is appro0imately seven months. !nswer% =!$ Diff% & 'age ef% *B -% 1&.&% $0plain what a patent is and describe different types of patents. !!C"% !pplication of nowledge &B) ince the first patent was granted in 1@B*, the 4'T- has granted A.@ million patents. !nswer% T4$ Diff% & 'age ef% *B -% 1&.&% $0plain what a patent is and describe different types of patents. !!C"% !pplication of nowledge +*) ! utility patent can be obtained for a new product or process or the >idea> for a new product or process. !nswer% =!$ Diff% & 'age ef% 1* -% 1&.&% $0plain what a patent is and describe different types of patents. !!C"% !nalytical Thinking +1) Design patents are the most common type of patent and cover what we generally think of as new inventions. !nswer% =!$ Diff% & 'age ef% 1* -% 1&.&% $0plain what a patent is and describe different types of patents. !!C"% eflective Thinking
A Copyright : &*1; 'earson $ducation, #nc.
+&) #dentify and briefly describe the three types of patents. !nswer% The three types of patents are utility patents, design patents, and plant patents. 4tility patents are the most common type of patent and cover what we generally think of as new inventions. 'atents in this category may be granted to anyone who >invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof.> Design patents are the second most common type of patent and cover the invention of new, original, and ornamental designs for manufactured products. /hile a utility patent protects the way an invention is used and works, a design patent protects the way it looks. The third type of patent is plant patents. 'lant patents protect new varieties of plants that can be reproduced ase0ually. uch plants are reproduced by grafting or crossbreeding rather than by planting seeds. Diff% & 'age ef% 1* -% 1&.&% $0plain what a patent is and describe different types of patents. !!C"% eflective Thinking ++) ! is any word, name, symbol, or device used to identify the source of origin of products or services and to distinguish those products or services from others. !) copyright ") trademark C) license D) trade secret $) patent !nswer% " Diff% 1 'age ef% 1 -% 1&.+% Describe a trademark and e0plain the process entrepreneurs use to obtain one. !!C"% eflective Thinking +) The four types of trademarks are . !) trademarks, service marks, collective marks, and certification marks ") e0amination marks, trademarks, combined marks, and service marks C) shared marks, collective marks, mutual marks, and trademarks D) service marks, cooperative marks, trademarks, and shared marks $) trademarks, collective marks, documentation marks, and combined marks !nswer% ! Diff% & 'age ef% 1; -% 1&.+% Describe a trademark and e0plain the process entrepreneurs use to obtain one. !!C"% eflective Thinking
B Copyright : &*1; 'earson $ducation, #nc.
+9) /hich of the following is not a type of trademark !) Trademark ") Certification mark C) Documentation mark D) Collective mark $) ervice mark !nswer% C Diff% & 'age ef% 1; -% 1&.+% Describe a trademark and e0plain the process entrepreneurs use to obtain one. !!C"% eflective Thinking +;) Dell for computers, 7odcloth for vintage and vintage?inspired women2s clothing, and 'roactiv for acne medication are e0amples of . !) certifications ") copyrights C) patents D) trade secrets $) trademarks !nswer% $ Diff% & 'age ef% 1; -% 1&.+% Describe a trademark and e0plain the process entrepreneurs use to obtain one. !!C"% eflective Thinking +@) marks are similar to ordinary trademarks, but they are used to identify the services or intangible activities of a business rather than a b usiness2s physical product. !) Creative ") #ntangible C) $0amination D) ervice $) ubtle !nswer% D Diff% & 'age ef% 1@ -% 1&.+% Describe a trademark and e0plain the process entrepreneurs use to obtain one. !!C"% eflective Thinking +A) marks are trademarks or service marks used by the members of a cooperative, association, or other collective group, including marks indicating membership in a union or similar organi
+B) The 'artnering for uccess feature in Chapter 1& starts by talking about 5ary chwart"egeler,> which was eventually licensed to raft. !ccording to the feature, entrepreneurs and inventors like 5ary chwart
11 Copyright : &*1; 'earson $ducation, #nc.
+) Certification marks are similar to ordinary trademarks, but they are used to identify the services or intangible activities of a business rather than a business2s physical product. !nswer% =!$ Diff% & 'age ef% 1A -% 1&.+% Describe a trademark and e0plain the process entrepreneurs use to obtain one. !!C"% !pplication of nowledge ) Combinations of numbers and letters, such as +7 and 1?A**?C-3T!CT, can be trademarked. !nswer% T4$ Diff% & 'age ef% 1A -% 1&.+% Describe a trademark and e0plain the process entrepreneurs use to obtain one. !!C"% eflective Thinking 9) Trademark law falls under the anham !ct, which passed in 1B;. !nswer% T4$ Diff% & 'age ef% 1A -% 1&.+% Describe a trademark and e0plain the process entrepreneurs use to obtain one. !!C"% eflective Thinking ;) 7arks that are merely descriptive of a produc t or service can be trademarked. !nswer% =!$ Diff% & 'age ef% 1B -% 1&.+% Describe a trademark and e0plain the process entrepreneurs use to obtain one. !!C"% !nalytical Thinking @) /hat is a trademark /hy are trademarks important !nswer% ! trademark is any word, name, symbol, or device used to identify the source or origin of products or services and to distinguish those products or services from others. !ll businesses want to be recogni
1& Copyright : &*1; 'earson $ducation, #nc.
A) ! form of intellectual property protection that grants to the owner of a work of authorship the legal right to determine how the work is used and to obtain the economic benefits from the work is referred to as a(n) . !) assurance document ") patent C) trade secret D) brand $) copyright !nswer% $ Diff% 1 'age ef% &1 -% 1&.% Define a copyright and identify what a copyright can protect. !!C"% eflective Thinking B) /hich of the following statements about copyrights is incorrect !) "usinesses typically possess a treasure trove of copyrightable material. ") ! musical composition that is written down is copyrightable. C) Copyrightable material may be in tangible or intangible form. D) The 1B@; Copyright !ct governs copyright law in the 4nited tates. $) ! copyright is a form of intellectual property protection. !nswer% C Diff% & 'age ef% &1 -% 1&.% Define a copyright and identify what a copyright can protect. !!C"% !pplication of nowledge 9*) Copyright law is governed by the . !) 4.. Constitution ") 1B; #ntellectual 'roperty !ct C) 1B;; Trademark and Copyright !ct D) 1B99 #nventors and /riter2s 'rotection !ct $) Copyright evision !ct of 1B@; !nswer% $ Diff% + 'age ef% &1 -% 1&.% Define a copyright and identify what a copyright can protect. !!C"% eflective Thinking 91) #f a local band wrote their own rendition of a aty 'erry song, the band could try to copyright their rendition of the song as a(n) work. !) imitative ") offshoot C) derivative D) subse6uent $) supplemental !nswer% C Diff% & 'age ef% &1 -% 1&.% Define a copyright and identify what a copyright can protect. !!C"% !pplication of nowledge
1+ Copyright : &*1; 'earson $ducation, #nc.
9&) Copyright law protects any work of authorship . !) B* days after it is approved by the 4.. Copyright -ffice ") one year after it assumes a tangible form C) the moment it assumes a tangible form D) as soon as it is approved by the 4.. Copyright -ffice $) +* days after it assumes a tangible form !nswer% C Diff% & 'age ef% && -% 1&.% Define a copyright and identify what a copyright can protect. !!C"% eflective Thinking 9+) /hich of the following symbols is the copyright bug !) G ") H C) I D) : $) J !nswer% D Diff% & 'age ef% && -% 1&.% Define a copyright and identify what a copyright can protect. !!C"% !pplication of nowledge 9) !ccording to current regulations, any copyrightable work created on or after anuary 1, 1B@A, is protected by copyright law for the life of the author plus years. !) &A.9 ") 1*1 C) * D) 99 $) @* !nswer% $ Diff% + 'age ef% &+ -% 1&.% Define a copyright and identify what a copyright can protect. !!C"% eflective Thinking 99) The main e0clusion from copyright laws is that copyright laws cannot protect . !) ideas ") dramatic works C) computer software D) musical compositions $) literary works !nswer% ! Diff% + 'age ef% &+ -% 1&.% Define a copyright and identify what a copyright can protect. !!C"% !nalytical Thinking
1 Copyright : &*1; 'earson $ducation, #nc.
9;) Copyright occurs when one work derives from another or is an e0act copy or shows substantial similarity to the original work. !) infringement ") violation C) intrusion D) breach $) duplication !nswer% ! Diff% & 'age ef% &+ -% 1&.% Define a copyright and identify what a copyright can protect. !!C"% eflective Thinking 9@) The /hat /ent /rong feature in Chapter 1& focuses on a dispute between 5oldie"lo0, a toy company, and the "eastie "oys, a musical group. The dispute centered on 5oldie"lo02s use of a "eastie "oys song in a commercial without the "eastie "oy2s permission. To Fustify their actions, 5oldie"lo0 argued that their use of the song wa s Fustified based on the legal principle of use. !) fair ") trivial C) limited D) inconse6uential $) non?restricted !nswer% ! Diff% & 'age ef% &9 -% 1&.% Define a copyright and identify what a copyright can protect. !!C"% !nalytical Thinking 9A) ! trademark is a form of intellectual property protection that grants to the owner of a work of authorship the legal right to determine how the work is used and to obtain the economic benefits from the work. !nswer% =!$ Diff% 1 'age ef% &1 -% 1&.% Define a copyright and identify what a copyright can protect. !!C"% eflective Thinking 9B) Computer software is not covered by copyright law. !nswer% =!$ Diff% & 'age ef% &1 -% 1&.% Define a copyright and identify what a copyright can protect. !!C"% eflective Thinking ;*) 'ictorial, graphic, and sculptural works can be protected via copyrights. !nswer% T4$ Diff% + 'age ef% && -% 1&.% Define a copyright and identify what a copyright can protect. !!C"% !nalytical Thinking
19 Copyright : &*1; 'earson $ducation, #nc.
;1) Copyright infringement occurs when one work derives from another or is an e0act copy. !nswer% T4$ Diff% & 'age ef% &+ -% 1&.% Define a copyright and identify what a copyright can protect. !!C"% eflective Thinking ;&) /hat is a copyright /hat is protected by a copyright !nswer% ! copyright is a form of intellectual property protection that grants to the owner of a work of authorship the legal right to determine ho w the work is used and to obtain the economic benefits from the work. The work must be in tangible form, such as a book, operating manual, or maga
;9) /hich of the following items would typically be protected by a form of intellectual property protection other than trade secret statutes !) =inancial forecast ") 'roduct formula C) ! company2s logo D) ogs of sales calls $) $mployee roster !nswer% C Diff% & 'age ef% &; -% 1&.9% Describe a trade secret and understand the common causes of trade secret disputes. !!C"% eflective Thinking ;;) The federal $conomic $spionage !ct, passed in 1BB;, criminalivoluntarily> disclosed ") an employee leaves a firm to Foin a competitor and is accused of taking confidential information with him or her C) one firm claims that another firm outright stole its trade secrets D) one firms claims that what another firm is claiming as a trade secret is common knowledge $) one firm claims that it obtained another firm2s trade secrets through legal means !nswer% " Diff% + 'age ef% &@ -% 1&.9% Describe a trade secret and understand the common causes of trade secret disputes. !!C"% eflective Thinking 1@ Copyright : &*1; 'earson $ducation, #nc.
;B) ! trade secret is any formula, pattern, physical device, idea, process, or other information that provides the owner of the information with a competitive advantage in the marketplace. !nswer% T4$ Diff% 1 'age ef% &; -% 1&.9% Describe a trade secret and understand the common causes of trade secret disputes. !!C"% eflective Thinking @*) /hile stealing trade secrets is widely considered to be unethical, it is no t a criminal offense. !nswer% =!$ Diff% & 'age ef% &; -% 1&.9% Describe a trade secret and understand the common causes of trade secret disputes. !!C"% !pplication of nowledge @1) Trade secret disputes arise most fre6uently when one firm alleges that a trade secret claimed by another firm is common knowledge, and can therefore be used by anyone. !nswer% =!$ Diff% & 'age ef% &@ -% 1&.9% Describe a trade secret and understand the common causes of trade secret disputes. !!C"% eflective Thinking @&) !n is conducted to determine the intellectual property a company owns. !) intellectual property audit ") intangible materials audit C) academic property inventory D) intellectual materials inventory $) intangible property inventory !nswer% ! Diff% 1 'age ef% &B -% 1&.;% $0plain what an intellectual property audit is and identify the two primary reasons entrepreneurial firms should complete this type of audit. !!C"% !nalytical Thinking @+) Consider the following 6uestions% !re products under development that re6uire patent protection !re we in compliance with the copyright license agreements into which we have entered #s anyone infringing on our trademarks !re company trade secrets leaking out to competitors These are the types of 6uestions that would be asked when conducting a(n) . !) intangible material e0amination ") intellectual property inventory C) intangible material inspection D) patent, trademark, copyright, and trade secret review $) intellectual property audit !nswer% $ Diff% & 'age ef% &B -% 1&.;% $0plain what an intellectual property audit is and identify the two primary reasons entrepreneurial firms should complete this type of audit. !!C"% !pplication of nowledge 1A Copyright : &*1; 'earson $ducation, #nc.
@) There are two primary reasons to conduct an intellectual property audit. =irst, it is prudent for a company to periodically determine whether its intellectual property is being properly protected. The second reason for a company to conduct an intellectual property audit is to . !) remain prepared for a ecurity L $0change Commission spot inspection ") remain prepared to Fustify its value in the even t of a merger or ac6uisition C) remain prepared for an initial public offering D) update the value of its intellectual property on its balance sheet $) make sure no intellectual property has been stolen !nswer% " Diff% & 'age ef% &B -% 1&.;% $0plain what an intellectual property audit is and identify the two primary reasons entrepreneurial firms should complete this type of audit. !!C"% eflective Thinking @9) !n intellectual property audit is conducted to determine the intellectual property a company owns. !nswer% T4$ Diff% 1 'age ef% &B -% 1&.;% $0plain what an intellectual property audit is and identify the two primary reasons entrepreneurial firms should complete this type of audit. !!C"% eflective Thinking
1B Copyright : &*1; 'earson $ducation, #nc.
