Question 1

Which of the following is NOT one of the four key forms of intellectual property protection?

Accepted Answer

The four key forms of intellectual property protection are copyrights, trademarks, trade secrets, and patents. "Innovations" is not a form of intellectual property protection, but rather a general term referring to new or improved products, processes, or ideas.

Question 2

What are the two primary rules of thumb for determining whether intellectual property protection should be pursued for a particular intellectual asset?

Accepted Answer

First, a firm should determine whether the intellectual property in question is directly related to its competitive advantage. Second, a firm should determine whether the item has independent value in the marketplace. If either or both of these conditions exist, intellectual property protection for an asset should be strongly considered.

Question 3

The first patent, which was granted for a process of making potash, an ingredient in fertilizer, was signed by ________.

Accepted Answer

George Washington signed the first U.S. patent, which was granted for a process of making potash, an ingredient in fertilizer. This occurred on July 31, 1790, marking the beginning of the U.S. patent system.

Question 4

Which of the following are the four key forms of intellectual property protection?

Accepted Answer

The four key forms of intellectual property protection are patents, copyrights, trademarks, and trade secrets. These protections are crucial for businesses to maintain their competitive edge and protect their innovations and creations. Discoveries, covenants, official documents, internet domain names, and innovations are not forms of intellectual property protection.

Question 5

What is intellectual property? Why is it called "intellectual" property? Why is intellectual property such an important issue for entrepreneurial firms?

Accepted Answer

The answer of What is intellectual property? Why is it...

Question 6

A grant from the federal government conferring the rights to exclude others from making, selling, or using an invention for a specific period of time is referred to as a(n) ________.

Accepted Answer

The description given in the question is that of a patent, which confers exclusive rights to an inventor to exclude others from making, selling or using the invention for a specific period of time. Trademark refers to a word, symbol or design that identifies and distinguishes the source of goods or services of one party from those of others. Idea secret is not a legal term. Innovation is a broad term that refers to the introduction of something new, while copyright refers to the exclusive rights granted to authors, artists or other creators to their original works.

Question 7

Which of the following is NOT an example of intellectual property?

Accepted Answer

A computer monitor is not intellectual property, as it is a physical object and does not qualify for legal protection under intellectual property laws. The other options are all forms of intellectual property, including trade secrets (Proactiv's formula), trademarks (Apple's logo), domain names (www.dripcatch.com), and software (Microsoft's Windows operating system).

Question 8

Intellectual property is any product of human intellect that is intangible but has value in the marketplace.

Accepted Answer

Intellectual property includes things like patents, trademarks, copyrights, and trade secrets, which are all intangible but can be bought, sold, licensed, and litigated in the marketplace.

Question 9

There are three basic requirements for a patent to be granted. The subject of the patent application must be ________.

Accepted Answer

The three basic requirements for a patent to be granted are that it must be useful, novel in relation to prior arts in the field, and not obvious to a person of ordinary skill in the field. A patent cannot be granted if it fails to meet any one of these requirements. Option A includes the correct requirements but incorrectly includes difficulty to copy as a requirement. Option B includes some correct requirements but also introduces incorrect criteria such as the subject being rare. Option D also includes correct criteria but includes rarity and difficulty to copy, which are not actual requirements for a patent. Option E incorrectly suggests that the subject of the patent must be based on cutting edge science or technology and fails to include the requirement that it must not be obvious to a person of ordinary skill in the field.

Question 10

Amazon.com's one-click ordering system and Priceline.com's "name-your-price" business model are examples of ________ patents.

Accepted Answer

Both Amazon.com's one-click ordering system and Priceline.com's "name-your-price" business model are examples of business method patents. Business method patents are a type of patent that protect a particular method of doing business or conducting commercial transactions.

Question 11

Which of the following was NOT identified in the textbook as one of the common mistakes that entrepreneurs make regarding intellectual property?

Accepted Answer

Registering Internet domain names is not directly related to intellectual property, but rather a separate issue related to establishing a web presence for a business.

Question 12

The sole entity responsible for granting patents in the United States is the ________.

Accepted Answer

The U.S. Patent and Trademark Office (USPTO) is the sole entity responsible for granting patents in the United States. The other options listed do not have any authority or jurisdiction over the patent system.

Question 13

Which of the following selections correctly identifies the three types of patents?

Accepted Answer

The three types of patents are utility patents, design patents, and plant patents. Option D correctly identifies these three types. Manufacturing, process, and plant (Option A) refers to types of patents that are commonly identified within the field of agriculture, but they are not the main classification of patents. Options B, C, and E do not correctly identify the three types of patents.

Question 14

There are two primary rules of thumb for deciding if intellectual property protection should be pursued for a particular intellectual asset. First, a firm should determine if the intellectual property has value in the marketplace. Second, a firm should determine if its intellectual property ________.

Accepted Answer

The first rule of thumb is to determine if the intellectual property has value in the marketplace. The second rule of thumb is left open-ended, but the correct answer would be A, as a firm should determine if its intellectual property is directly related to its competitive advantage. This means that if the intellectual property is something unique to the firm and gives them a competitive edge, then it would be worthwhile to pursue intellectual property protection.

Question 15

Patents, trademarks, copyrights, and licenses are the four key forms of intellectual property.

Accepted Answer

The four key forms of intellectual property are patents, trademarks, copyrights, and trade secrets. Licenses are not a form of intellectual property, but rather a permission granted by the owner of intellectual property to use that property under specified conditions.

Question 16

Which of the following is an example of intellectual property?

Accepted Answer

Intellectual property refers to creations of the mind, such as inventions, literary and artistic works, symbols, designs, and names used in commerce. Nike's swoosh logo is a symbol and design that is protected by intellectual property laws. The other options do not fall under the category of intellectual property.

Question 17

The opening feature focuses on 3Derm Systems, a company that makes a device that takes 3D images of the human skin. The central form of intellectual property that 3Derm is hoping to benefit from is a(n) ________.

Accepted Answer

A device that takes 3D images of human skin would likely be protected by a patent, which grants the holder exclusive rights to make, use, and sell the invention for a limited period of time. Trademarks, copyrights, and internet domain names are not applicable forms of intellectual property for this type of product, and licensing would refer to the granting of permission to use someone else's intellectual property.

Question 18

Since the first patent was granted, there have been ________ patents granted in the United States.

Accepted Answer

As of 2021, the United States Patent and Trademark Office has granted over 10 million patents. Therefore, the closest option is D, which is 9.6 million.

Question 19

________ patents are the most common type of patent and cover what we generally think of as new inventions.

Accepted Answer

Utility patents are the most common type of patent and protect the use or function of a new invention, as opposed to its design or aesthetic appearance (which would be covered by a design patent).

Question 20

Which form of intellectual property protection is the only one expressly mentioned in the original articles of the U.S. Constitution?

Accepted Answer

The only form of intellectual property protection expressly mentioned in the original articles of the U.S. Constitution is patents.

Quiz 12: The Importance of Intellectual Property