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10. In which country did trade secret law first originate in the early 1800s? A. France. B. The United States. C. England. 11. What impact did the Uniform Trade Secrets Act (UTSA) of 1979 have on trade secret protection in the United States? A. It was the first trade secret law binding on every state. B. It served as a model that was adopted by 48 of the 50 U.S. states. C. It served as a model that was adopted by every state. 12. Which of the following best describes the problem with the current lack of uniform federal protection of trade secrets? A. There is no real protection against misappropriation of trade secrets. B. The protections against trade secret theft are very uneven. C. A federal trade secret law would merely replicate state protections. 13. Which of the following could be considered a trade secret so long as reasonable steps had been taken to prevent its disclosure? A. Sales information. B. Customer lists. C. Manufacturing techniques. D. All of the above. 14. Is information not known to the public considered to be a trade secret? A. Yes. B. No. C. It depends. 15. Would a customer list always be considered a trade secret? A. It depends on whether the customers want to be identified or not. B. To be considered a trade secret, the names of customers must not be available or discernable through public sources. 16. Can a mere idea be considered a trade secret? A. No. Just as you cannot patent or copyright a mere idea, you cannot protect a mere idea with a trade secret. B. Yes. Under the Uniform Trade Secrets Act, even an idea can sometimes be considered a trade secret. 17. To gain trade secret protection, what must the owner do with confidential information? A. Publicize it as widely as possible. B. Not disclose it. C. Take active steps to keep the information secret. 18. What are the benefits of developing a written trade secret plan? A. It serves as a policy manual that prevents situations in which unwritten rules are followed and security procedures are ignored. B. In the event of litigation, it can serve as proof that you took active steps to keep the information secret. C. Both of these. 186 5 • Assessment Questions Access for free at openstax.org. 19. How should companies handle written trade secrets? A. Shred them. B. Mark them “secret” or “confidential,” among other measures taken. C. Never store them on a computer. 20. Which of these is an example of “passive disclosure” of a trade secret? A. Leaving confidential documents lying around for anyone to see. B. Inadvertently disseminating information at trade shows or conferences. C. Disclosing confidential information in press releases, newspaper articles, or marketing collateral. 21. What is one way to guard against the active disclosure of trade secret information? A. Prevent employee attendance at trade shows and seminars. B. Appoint a trade secret committee to approve publications, speeches, and marketing collateral prior to disclosure. C. Avoid meeting with prospective buyers, customers, or licensees. 22. Which of the following is NOT an example of misappropriation of a trade secret? A. Acquisition of a trade secret through improper means. B. Deliberate disclosure of a trade secret by the trade secret owner. C. Disclosure of a trade secret without consent. 23. The UTSA not only prohibits the actual disclosure or use of a trade secret, it also protects against the “threatened” disclosure of trade secrets. When might a court intervene to stop a “threatened” disclosure before the actual disclosure takes place? A. An employee goes to work for another company in a different industry. B. An employee caught embezzling is fired and the employer believes the same lack of morals will lead to the fired employee disclosing trade secrets. C. An employee goes to work for an arch competitor in a comparable job position. 24. The burden of proof in a threatened trade secret misappropriation case lies with whom? A. The trade secret owner. B. The former employee who leaves to go work for a competitor. C. The competitor, who must prove he did no wrong by hiring the ex-employee. 25. What remedies does the UTSA provide for the misappropriation of trade secrets? (Choose all that apply.) A. Criminal penalties of up to five years for a first offense. B. Statutory damages. C. Injunctive relief. D. Exemplary damages. E. Attorneys’ fees. 26. What remedies were imposed in the case of Mattel, Inc. v. MGA Entm’t, Inc. in 2013? A. An injunction barring a new employer from hiring the former employee of the trade secret owner. B. $85 million in exemplary (punitive) damages awarded to the trade secret owner. 5 • Assessment Questions 187 188 5 • Assessment Questions Access for free at openstax.org. A Glossary Chapter 1 • bargain or contract theory The premise that people will be encouraged to invent new products and services that benefit society if they are likely to profit by doing so. • design patents A type of patent granted to protect new, original, and non-obvious ornamental designs for articles of manufacture. • first office action A document in which the patent examiner approves, rejects, or requires additional information about the claims and/or other elements of the application. • intellectual property Creations of intellect, such as inventions and artistic works. • natural rights theory The premise that the product of mental labor is by all rights the property of its creator, no less than the product of physical labor is the property of its creator (or of the person who purchases it from that creator). • non-obviousness A patent requirement that ensures that the idea is inventive. • non-practicing entities An entity created by the Founding Fathers to expand the pool of inventors in their then-backward economy to include ordinary citizens without the wealth or resources to commercialize their own inventions. • novelty A patent requirement that ensures that the idea is new. • ornamentality A parent requrement that ensures that the idea is decorative. • patent examiner The person who reviews the patent application to determine if the invention meets the statutory requirements for patentability. • patent An intellectual property right granted by the government of a nation to an inventor that gives them the exclusive right to the invention for up to 20 years, in exchange for disclosing the details of the new technology to society for its ultimate benefit. • plant patents A type of patent to protect new species of plants. The criteria is novelty, distinctiveness, and non-obviousness. • utility patents The most common type of patents, which preclude others from making, using, or selling the invention during the term of the patent, which begins on the grant date and ends 20 years from the filing date (for an average of 17 to 18 years). • utility A patent requirement that ensures that the idea is usable and beneficial. • working requirements Regulations that forced patentees to manufacture products based on their patents within two or three years of issuance or lose their patent rights. Chapter 2 • America Invents Act (AIA) A 2011 act that substantially revised the nation’s patent laws in a number of important ways. • Complaint A legal document filed that sets out why the filing party believes their claim against the defendant is valid. • Counterclaims New charges filed against the plaintiff. • covered business methods review To review patents that claim a method or corresponding apparatus for performing data processing or other operations used in the practice, administration, or management of a financial product or service. • doctrine of equivalents The legal rule that prevents an infringer from copying the essence of the invention, but making insignificant modifications in an effort to avoid infringement. • estoppel Misleading your opponent into believing you would not file suit. • laches Waiting an unreasonable time to make your claim. • liability violation A type of violation in which you do not needto know that you are infringing a patent, or that a patent even exists, to be liable for patent infringement. • Markman hearings Hearings in which parties are permitted to provide their competing arguments in A • Glossary 189 briefs to the court, usually after discovery is completed, and make an oral argument on their respective positions to the court. • post-grant review A trial proceeding that asks the PTO to take another look at whether the patent is valid, i.e., whether it should have been granted in the first place. • royalty Money by offered the alleged infringer a license to practice your invention. • Scheduling Order A specification of dates by which certain activities must be concluded, issues by the court at, or shortly after, the pretrial conference. • stay A temporary suspention of a case ordered by the court. • Summary Judgment a procedure that obviates a trial where one of the parties can show that its opponent cannot win—as a matter of law. • venue The location for the case. • willful A patent infringement in which the the accused infringer “acted despite an objectively high likelihood that its actions constituted infringement of a valid patent,” and the “objectively defined risk . . . was either known or so obvious that it should have been known to the accused infringer.” Chapter 3 • Berne Convention An international agreement to ensure fair and reciprocal copyright protection for member nations. • Copyright Act of 1976 An act which extended copyright protection to works performed over cable TV and music performed via digital audio transmission. • Creative Commons A voluntary private sector alternative to traditional copyright that coordinates the creation and consumption of content among a wide variety of individuals and institutions—all without a hint of government intervention. • Digital Millennium Copyright Act of 1998 (DMCA) An act which made it a crime to disseminate technology or services that could circumvent DRM measures used to control access to copyrighted movies, music, and books. It also increased penalties for copyright infringement on the Internet. • infringement A violation of the exclusive rights of its owner of a copyright or any other intellectual property. • No Electronic Theft Act of 1997 An act which made it a criminal offense to reproduce or distribute music by electronic means (i.e., over the Internet). • Sonny Bono Copyright Term Extension Act An Act which added an additional 20 years to the term of copyright—extending it for most works to the life of the author plus 70 years after the author is deceased. • Statute of Anne A 1709 copyright statute which stipulated that a copyright could be obtained by anyone, and instead of a perpetual right, the term was limited to 14 years with the right to renew for one additional 14-year term. • work for hire A work prepared by an employee within the scope of their employment, or a work specially ordered or commissioned for use as a contribution to a collective work. Chapter 4 • Arbitrary marks Real words in common usage that have no descriptive relationship to the product or service being sold. • certification marks Any word, phrase, symbol or design—or a combination of any of these—owned by one party which certifies the goods and services of others when they meet certain standards or requirements. • classic fair use A condition that occurs when a trademark is used in good faith for its primary meaning, and no consumer confusion is likely to occur. • collective marks Any word, phrase, symbol, or design that is owned by a cooperative, association, collective group, or organization and is used by its members to indicate the source of goods or services. • descriptive mark Marks that explicitly describes the purpose, nature, or an attribute of a product or service and is therefore not eligible for trademark registration unless a secondary meaning or association 190 A • Glossary Access for free at openstax.org. Appendix A Glossary Chapter 1 Chapter 2 Chapter 3 Chapter 4