In 2008, Apple Filed for and Received Approval from the U.S

question 130

Multiple Choice

In 2008, Apple filed for and received approval from the U.S. Patent and Trademark Office to trademark the "App Store" name to describe a service that allows its iPhone and iPad customers to purchase and download applications, video games, and other software. Over the past few years, Apple has invested millions in advertising and publicity and customers have purchased millions of dollars of software from its "App Store." However, Amazon.com claims that Apple did not have exclusive rights to the name because other firms used it to describe their online storefronts where consumers can obtain software for smartphones and tablet devices. In March 2011, Apple filed a lawsuit against Amazon for violating its trademark. Why should Apple rigorously protect its "App Store" trademark?

• A)Apple risks losing its status as a generic smartphone and tablet device manufacturer.
• B)In order to maintain the use of its widely recognizable trademark, Apple must prevent the name from becoming generic.
• C)The Robinson-Patman Act conferred ownership of the "App Store" name and other trademarked property to Apple and/or Microsoft.
• D)The government will file charges for trademark infringement only if Apple, the owner of the trademark, has documented proof of wrongdoing by Amazon.
• E)By protecting its trademark, Apple is protecting the entire smartphone and tablet device industries from indirect competition.

---

Definitions:

Experience-curve Pricing

A pricing strategy based on the concept that unit production costs decline by a fixed percentage each time production experience doubles.

Cost-plus Pricing

A pricing strategy where a fixed percentage is added to the total cost of producing a product or service to determine its selling price.

Experience-curve Pricing

A pricing strategy that relies on reducing costs and setting prices based on gained efficiencies and experience over time.

Experience-curve Pricing

A pricing strategy that leverages reduced costs obtained through increased production experience to set lower prices aimed at gaining market share.