LEB 323 EXAM 3 QUESTIONS WITH
100% CORRECT ANSWERS
What is a restraint of trade? - Answer-"covenant to not compete" falls under this
category, it's avoiding companies in the same industry for a duration of time after
leaving your current company, you sign it day one because it could be considered under
duress after wards because of the fear of losing your job
What is the exculpatory clause? - Answer-a way to get out of a liability, maybe by
paying a fee, letting people off the hook for negligence is illegal
What is an example of an exception to the exculpatory clause? - Answer-waivers
(acknowledging the risk and forgoing the company's liability)
What is "prior art"? - Answer-something that isn't patented because it is in general use,
something patented in another country, something pre-existing (maybe slightly altered)
NOT patentable
What are "patent trolls"? - Answer-patents sold to these trolls who come in and sit on
them and then wait for someone to produce something like it and sue them
How are some businesses like patent trolls? - Answer-offer the competitor to buy their
patent and then buy it and sit on it because they already have something similar on the
market
Patent Infringement Claims - Answer-list of things the patent owner is wanting protected
under the law, very detailed
How similar does the competing product need to be? - Answer-the product has to be
almost identical
What are the legal remedies for patent infringement? - Answer-take the identical
product off the market, compensation for lost profits, their profit from the product, plus
consequential damages
How do you know when a trade secret exists? - Answer-1. not generally known
2. secure from access in a legal matter
3. gives owner a competitive edge (adding value)
, intellectual property law - Answer-has become more prevalent due to the economy
becoming more technology and service based
Are copyrights and trademarks secrets? - Answer-no
When does the legal protection for a secret kick in? - Answer-once the secret is stolen
What is the most important fact for the court considering secrets? - Answer-having
reasonable security measures
What all does the court consider in regards to trade secrets? - Answer-how many
people know it? how valuable is it? How easy is it to duplicate? how secure is the
secret?
Misappropriation - Answer-1. prove it was a secret
2. reasonably protected
3. have to do something deceptive ( not necessarily breaking the law) in order to steal it
compensation for trade secrets - Answer-book value of the secret
lost profits
treble damages
can ask for punitive damages as well
Case: Integrated Cash Management & Digital Transactions - Answer-Two employees
memorize the combination of two softwares and leave to go to a new company where
they use the combo and they get sued by their old company because it was a trade
secret and their old company won
Patent Requirements - Answer-1. Patentable subject matter: tangible subject matter
created or invented
2. Utility: some usefulness
3. Novelty: unique, has to be significantly modified
4. Non-obviousness: to someone in the same industry (also applied for secondary uses
of products)
Case: Assoc. for Molecular Pathology v. Myriad Genetics, Inc. - Answer-Myriad
patented a process for locating a specific gene and reconfiguring DNA, the DNA was
patentable but the process for the gene was not because it already exists in nature.
Molecular Pathology tried to steal it and they got to keep the gene part but no the DNA
reconfiguration.
Who owns patents? (old rule and new rule) - Answer-Old rule: first to invent
New rule: first to file
(gave inventors an incentive to patent)
What is the patent rule called? - Answer-America Invents Act (AIA)
100% CORRECT ANSWERS
What is a restraint of trade? - Answer-"covenant to not compete" falls under this
category, it's avoiding companies in the same industry for a duration of time after
leaving your current company, you sign it day one because it could be considered under
duress after wards because of the fear of losing your job
What is the exculpatory clause? - Answer-a way to get out of a liability, maybe by
paying a fee, letting people off the hook for negligence is illegal
What is an example of an exception to the exculpatory clause? - Answer-waivers
(acknowledging the risk and forgoing the company's liability)
What is "prior art"? - Answer-something that isn't patented because it is in general use,
something patented in another country, something pre-existing (maybe slightly altered)
NOT patentable
What are "patent trolls"? - Answer-patents sold to these trolls who come in and sit on
them and then wait for someone to produce something like it and sue them
How are some businesses like patent trolls? - Answer-offer the competitor to buy their
patent and then buy it and sit on it because they already have something similar on the
market
Patent Infringement Claims - Answer-list of things the patent owner is wanting protected
under the law, very detailed
How similar does the competing product need to be? - Answer-the product has to be
almost identical
What are the legal remedies for patent infringement? - Answer-take the identical
product off the market, compensation for lost profits, their profit from the product, plus
consequential damages
How do you know when a trade secret exists? - Answer-1. not generally known
2. secure from access in a legal matter
3. gives owner a competitive edge (adding value)
, intellectual property law - Answer-has become more prevalent due to the economy
becoming more technology and service based
Are copyrights and trademarks secrets? - Answer-no
When does the legal protection for a secret kick in? - Answer-once the secret is stolen
What is the most important fact for the court considering secrets? - Answer-having
reasonable security measures
What all does the court consider in regards to trade secrets? - Answer-how many
people know it? how valuable is it? How easy is it to duplicate? how secure is the
secret?
Misappropriation - Answer-1. prove it was a secret
2. reasonably protected
3. have to do something deceptive ( not necessarily breaking the law) in order to steal it
compensation for trade secrets - Answer-book value of the secret
lost profits
treble damages
can ask for punitive damages as well
Case: Integrated Cash Management & Digital Transactions - Answer-Two employees
memorize the combination of two softwares and leave to go to a new company where
they use the combo and they get sued by their old company because it was a trade
secret and their old company won
Patent Requirements - Answer-1. Patentable subject matter: tangible subject matter
created or invented
2. Utility: some usefulness
3. Novelty: unique, has to be significantly modified
4. Non-obviousness: to someone in the same industry (also applied for secondary uses
of products)
Case: Assoc. for Molecular Pathology v. Myriad Genetics, Inc. - Answer-Myriad
patented a process for locating a specific gene and reconfiguring DNA, the DNA was
patentable but the process for the gene was not because it already exists in nature.
Molecular Pathology tried to steal it and they got to keep the gene part but no the DNA
reconfiguration.
Who owns patents? (old rule and new rule) - Answer-Old rule: first to invent
New rule: first to file
(gave inventors an incentive to patent)
What is the patent rule called? - Answer-America Invents Act (AIA)
