Intellectual Property Practice Exam Questions

1. 1.Copyright in software: The code is protected by copyright. The MIT license permits use, modification, and distribution but requires attribution (including the copyright notice). The tech company's failure to attribute violates the license terms, converting the use into copyright infringement.
2. 2.Patent issues: An algorithm may be patentable if it produces a concrete, useful result (subject to Alice Corp. v. CLS Bank limitations on abstract ideas). The open-source release may constitute a public disclosure that could bar the patent under the on-sale/public use bar if more than one year before filing.
3. 3.Independent development defense: In patent law, independent development is NOT a defense (unlike trade secrets). If the patent is granted, the competitor infringes regardless of independent development.
4. 4.Open source and patents: Releasing code as open source does not waive patent rights (unless the license includes a patent grant). The MIT license does not contain an explicit patent license, though some courts may find an implied license.

1. 1.Common law trademark rights: The small shop has common law trademark rights in 'Starlight Brews' within its geographic area based on 15 years of continuous use. No registration is required for common law protection.
2. 2.Priority: The small shop has priority of use in its geographic area (the 'Tea Rose-Rectanus' doctrine). The senior user's rights are limited to the area of actual use plus natural zone of expansion.
3. 3.Federal registration advantage: The national chain's federal registration gives it constructive notice and nationwide priority, BUT only outside the areas where the small shop has established prior use.
4. 4.Likelihood of confusion: Both use 'Starlight' for coffee services. Factors include similarity of marks, relatedness of services, strength of the marks, proximity of goods, and actual confusion evidence.

Correct Answer: D

Under 17 U.S.C. Section 202, ownership of the physical copy (the canvas) is distinct from ownership of the copyright. The first sale doctrine (Section 109) permits resale of the particular copy purchased, not reproduction. The collector may resell the original canvas but may not make reproductions. The copyright owner retains the exclusive right of reproduction under Section 106(1).

Correct Answer: B

Under the Uniform Trade Secrets Act and the Defend Trade Secrets Act, a trade secret must (1) derive economic value from not being generally known or readily ascertainable, and (2) be subject to reasonable measures to maintain secrecy. A non-disclosure agreement helps establish reasonable measures but is not required. Trade secrets do not need to be registered or patentable.

Correct Answer: B

Under Campbell v. Acuff-Rose Music, Inc., a parody that targets the original work is evaluated under the fair use factors of 17 U.S.C. Section 107. The transformative nature of the parody (commenting on the original) weighs heavily in favor of fair use. Parody is not categorically exempt, but the Supreme Court recognized that parodies frequently qualify as fair use because they provide social benefit by shedding light on the original work.