1. Which of the following cautions does the passage offer to companies that are engaged in the development or public use of software in some capacity?
A. Companies that file patents to protect the intellectual property of their software developers might not be able to use those patents as a legal defense in infringement cases.
No, the companies that file patents to protect the IP of their software developers CAN use the aforementioned patents as legal defense in infringement cases. As mentioned in the last paragraph as well, companies have the option of either going through the legal route or opt for an out of court settlement so technically, it is the choice of the company, not that it is out of their hands
B. Companies that are sued for patent infringement seldom recover from the financial setback of such a lawsuit if they choose to take their cases to trial.
The author states (in the last paragraph) that while some (only a handful of) companies were willing to take the case to trial, most companies went for an out-of-court settlement in order to avoid the financial burden of waging a legal defense. This does not imply that those who do take the legal route, fail to recover from the same. Also nowhere in the passage has it been mentioned or implied that companies who opt to go in the direction of a lawsuit recover from the financial setback or not
C. Companies that design software to be compatible with existing electronics will incur significant costs in the process of obtaining the rights to do so.
No, the passage does not state or imply that companies need to obtain rights to design software compatible with electronics and even though a company should obtain rights to patented ideas, its not mentioned in this option whether these existing electronics are patented or not. Even the costs for such rights is not discussed anywhere in the passage, only costs related to lawsuits has been discussed
D. Companies that hold patents for certain software theories and concepts may not have done enough to protect their intellectual property.
CORRECT. The end of the first paragraph states that there has sometimes been sufficient evidence to award one patent holder damages from companies that have designed software using an idea expressed in another, similar patent. This clearly implies/indicates that companies that hold patents might not be sufficiently protected by their own patents, thus the answer that they may not have done enough to protect their intellectual property
E. Companies that utilize common software features on their websites will inevitably expose themselves to the financial liability of lawsuits.
Ok, yes it might be possible that websites with common software features might expose themselves to patent infringement lawsuits but the word 'inevitably' in this answer choice indicates that it is bound to happen in every scenario with every company and that is a little harsh and extreme because certain situations can lead to lawsuits but lawsuits is not the only outcome in every situation with every company
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2. The passage most clearly implies that which of the following is true concerning website features, the concepts of which are eligible for patent protection?
A. Their patents are void when there is more than one patent that covers the same general concept, regardless of whether the code used differs greatly.
No, the passage states that sometimes one patent holder has received damages from a company that designed a product using an idea expressed in another, similar patent. This implies that there are multiple patents with the same general concept
B. Their patents are so vague that one company will not be motivated to offer a settlement to another company that sues the first for patent infringement.
No, the passage does not state or imply that either the patents are vague or the company will not be motivated to offer a settlement to another company
C. They are likely to be the subject of infringement lawsuits brought by "patent trolls" more often than are other patent protected software concepts.
No, the passage mentions that it is possible that these are likely to the subject of lawsuits but nowhere does it state or imply that it would be more likely or less likely that other software concepts
D. They are likely to be considered essential components of doing business effectively within certain industries, regardless of the patent holder.
CORRECT. The author in the second paragraph states that it is not unusual to see identical features on dozens of websites across a single industry, implying that it is a common business practice that needs to be done in order to do business properly
E. Their patents are so unreasonable that no company is able to independently defend its patent ownership rights in a jury trial.
No, there is no mention or implication of this anywhere in the passage.
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3. The final paragraph of the passage accomplishes which of the following tasks?
A. It reviews information already given in the passage and offers a case study that demonstrates the dangers faced by innovative companies of the type discussed in previous paragraphs.
No, the last paragraph provides us new information in the form of an example and does not review information already mentioned above in the passage
B. It offers suggestions on what risks companies that are faced with infringement lawsuits should take into consideration when debating their courses of action.
No, the author in the last paragraph does not talk about any risks. It simply mentions how certain companies choose to take an out-of-court settlement instead of a legal lawsuit to avoid financial burden
C. It describes an especially gross instance of patent abuse that was surprising to the author because it affected some companies differently than it did others.
Although it does describe such instance in the form of an example, but the paragraph does not tell us anything about that affecting different companies in a different manner
D. It presents an additional quality unique to software patents that makes them particularly vulnerable to abuse.
No, the last paragraph provides no such information about an additional quality
E. It recounts a specific example of a problem that arose from impractical circumstances that are explained more generally elsewhere in the passage.
CORRECT. Yes, The author starts the paragraph by detailing a specific example from a particular situation, and that situation about companies earning revenue from lawsuits is discussed throughout in the passage above
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4. It can be inferred from the passage that which of the following provides sufficient grounds for one company to file a lawsuit against another for patent infringement?
A. A company has started utilizing the same interactive web features on its consumer-facing website as has a competitor that has been in the industry a longer period of time.
No, this does not mention that the earlier competitor has a patent to his name or not so cannot say for certain the grounds for a lawsuit
B. A company has a substantial patent portfolio that covers several operating systems used in consumer electronics.
No, there is no mention of another company exploiting this company's patent technology
C. A company contracts with a startup to develop software for its new line of laptop computers, but the startup also has a contract with a competitor for a similar product.
No, a company can have contracts with multiple other companies but as long as it is not misusing patent technology, there are no grounds for lawsuits
D. A company develops a unique, interactive web feature that is based on a theory originally patented by a developer who sold the patent years ago.
CORRECT. Yes, a patent already exists and another one is using that for their own purpose. Lawsuit grounds are there definitely
E. A company submits an application to the U.S. Patent and Trademark Office to patent a software concept for which several other patents already exist.
No, this just tells us company wants to get a new patent for already existing work