LECTURE 9

The scientists at Brainstorm, a private medical research firm, have come up with a remarkable medicine for curing cancer. This cancer treatment technology is well protected and cannot be easily duplicated. Based on this information, it would be most accurate to say that this technology:

• cannot be patented.

• is easily imitable.

• is not socially complex.

• has a high degree of appropriability.

Which of the following is the property right that most effectively protects works of authorship?

• Patents

• Embargoes

• Copyrights

• Trademarks

Joe’s Burgers is a famous fast food chain that uses a picture of a cook in a red hat as its symbol. It is not legal for you to sell hamburgers with the same identification picture as that of Joe’s Burgers because that would be a(n):

• patent violation.

• trademark violation.

• embargo violation.

• trade secret violation.

Which of the following can be protected by a copyright?

• Familiar symbols

• Names of people

• An improvisational speech that has not been recorded

• A novel

Software whose code is made freely available to others for use, augmentation, and resale is referred to as:

• wholly proprietary systems.

• patented software.

• open source software.

• copyright protected systems.

Singing Cards has decided to make the technology behind the making of musical cards open. Which of the following is likely to be one of the advantages associated with this decision?

• The technology will accrue more rapid adoptions.

• The company will be able to monopolize the market.

• The production of complementary goods will slow down and eventually cease.

• The technology’s installed base will accumulate much more slowly.

A service mark distinguishes the provider of a service rather than a product.

• TRUE

• FALSE

The rights of copyright protection are established by legitimate use of the work.

• TRUE

• FALSE

Wholly open systems can be quickly commoditized and provide little appropriability of rents to their developers.

• TRUE

• FALSE

If multiple firms benefit from a technology’s success, the developer of that technology has a much greater incentive to invest in further developing the technology.

• TRUE

• FALSE