Cheong Choon Ng,the Owner of Rainbow Loom,developed a Rubber-Band Jewelry

question 55

Multiple Choice

Cheong Choon Ng,the owner of Rainbow Loom,developed a rubber-band jewelry making kit that has a distinctive trade dress C-shaped clip that allows kids to connect loops of rubber bands to form bracelets.The looming technique in the kit dates back to the 1800s when the technique of looping knits was called Brunnian Links.Mr.Ng says he developed the C-Clip as he watched his daughters trying to make bracelets out of tiny rubber bands.After three years of enjoying a monopoly on a hot-selling craft item,Mr.Ng faced competition from FunLoom.Mr.Ng has filed suit against FunLoom for copying the C clip in its craft kit for the rubber band bracelets.Which of the following statements by the owner of FunLoom would be the best avenue for defense against the infringement suit by Rainbow Loom?

• A)"Our clip is larger."
• B)"It works the same, but it isn't the same.It just looks like it."
• C)"Is a loom something new and novel? It isn't."
• D)"This issue should be decided by competition, not the courts."

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Definitions:

Perfect Information

Perfect information refers to a theoretical scenario where all participants in a market have complete and instantaneous knowledge of all market conditions and variables, leading to an optimal decision-making environment.

Expected Value

A calculation in probability theory that represents the average outcome when the experiment is repeated a large number of times.

Conditional Probabilities

The likelihood of an event or outcome occurring, given that another event has already occurred.

Optimistic Decision Maker

A decision-making style characterized by the tendency to expect the most favorable outcome.