Chapter Business Concepts 11 i-NET+ EXAM OBJECTIVES COVERED IN THIS CHAPTER: Explain the issues involved in copyrighting, trademarking, and licensing Content could include the following: How to license copyright materials Scope of your copyright How to copyright your material anywhere Consequences of not being aware of copyright issues, not following copyright restrictions Identify the issues related to working in a global environment Content could include the following: Working in a multivendor environment with different currencies, etc International issues—shipping, supply chain Multilingual or multicharacter issues (Unicode) Legal and regulatory issues Define the following Web-related mechanisms for audience development (i.e., attracting and retaining an audience): Push technology Pull technology Describe the differences between the following from a business standpoint: Intranet Extranet Internet Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com Define e-commerce terms and concepts Content could include the following: EDI Business to business Business to consumer Internet commerce Merchant systems Online cataloging Relationship management Customer self-service Internet marketing Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com T he Internet started out as the province of government agencies and academic institutions Profit wasn’t an issue then But as the Internet extended its reach into households around the world, businesses realized the potential for Internet commerce Today, business facilitated by the Internet is a giant industry It continues to grow rapidly As an Internet professional, you have to understand the business issues that (in many cases) drive technical innovations From copyright, to marketing, to the design of Internet storefronts, you have to know what drives the decisions This chapter explains some of the issues Intellectual Property on the Network Intellectual property denotes any intangible product of a human being, a group of human beings, or another legal entity (such as a corporation) Intellectual property law aims to protect the rights of creative people to capitalize on the things they create Practically speaking, intellectual property is any creative product—particularly one that has monetary value Examples of intellectual property include the following: The words to “Louie, Louie” The text of Hamlet The cosmetic design of the iMac The source code for the OS/2 operating system Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com 514 Chapter 11 Business Concepts The formula for making Coca-Cola The Nike “swoosh” logo The design of the Trinitron picture tube The tune to “Macarena” The question of what qualifies as intellectual property is an open question—court cases come up all the time in which one party alleges that something previously unmentioned in law enjoys copyright protection The Harley-Davidson Motorcycle Company sued Honda over its bikes’ exhaust noise Harley claimed that its bikes’ noise was a distinctive feature of their design and enjoyed copyright protection Harley lost, but this case gives an indication of the evolving nature of intellectual property law The computer revolution has forced many tests of intellectual property protections, many of which came about in the days when making a copy of a work of music or literature was a difficult, expensive process Should a piece of software, which may be duplicated perfectly, instantaneously, and for negligible cost, enjoy copyright? Should Web publisher A be able to sue Web publisher B when B “frames” A’s content and presents it as his own? These are open questions still in the process of being decided Copyright A copyright is the right of an author, artist, publisher, or other legal entity to collect money from the use of words, music, performance works, items of visual art, or other creative products Facts and short phrases cannot be copyrighted (though certain short phrases may be protected under trademark law) Copyright, in the United States, attempts to guarantee the creator several benefits: The right to reproduce the work and distribute the copies The right to revise and improve the work The right to perform or display the work publicly The right to have some assurance that the work won’t be defaced or used in a way the author did not intend The right to receive credit for others’ references to the work Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com Intellectual Property on the Network 515 A copyright depends on the ability of a person or entity that is claiming protection to prove original creation of the work in question and to prove that creation took place on a certain date U.S law actually allows two creators to have copyright on identical creative works, provided they arrived at their respective creations independently of one another There’s a good copyright FAQ on the Web at bricolage.bel-epa.com/ resources/lounge/bureau/copyright/ A creative work whose author renounces his copyright or refuses to enforce it through infringement suits is said to be in the public domain Public domain works may be used by anyone, for any purpose, without the user paying royalties or licensing fees to anyone Other ways material may enter the public domain include the following: Copyright protection can lapse, as it does after some time period (usually 50 or 75 years after the author dies, depending upon when it was first created or published) Materials published by most governments (including that of the United States and its individual state governments) are automatically in the public domain Note that it is possible to sell public domain works This is what the publishers of William Shakespeare’s plays do, for example Getting a Copyright On one level, it’s very easy to get a copyright If you create a work, and can prove the date on which it was created, you have a legal copyright This is known as a common law copyright Common law copyright protects you from the moment that you create a work Of course, proving original creation and its date can be tricky If you put a copyright statement on a document, you alert the world that you claim ownership of the intellectual property contained in that document A suitable copyright statement looks like this: Copyright © January 1, 2000, Billy Pilgrim Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com 516 Chapter 11 Business Concepts That copyright symbol is a tricky thing The c-in-a-circle isn’t part of all font packages, and it’s not clear that (c) is the legal equivalent of © just because the former is easier to make with a computer However, the spelledout word copyright should be adequate Because text can be edited so easily, you can improve the legitimacy of the date from which you claim copyright protection by sealing your document in an envelope and mailing it to yourself The sealed, postmarked envelope serves as stronger—but not absolute—proof that you had the intellectual property on the date you claim Registered Copyright You can achieve an extra level of legal protection for a creative work by registering the work with your government’s copyright office Essentially, formal copyright registration provides a fairly unquestionable way of establishing when a work was created The duration of copyright protection established this way varies among media To cite one example, an author who registered a novel today would enjoy copyright protection for the remainder of her life, and her heirs could enjoy the benefits of copyright protection for 50 years after her death In the United States, the Copyright Office handles copyright registrations Its Web site appears in Figure 11.1 Other governments have similar agencies You request a registration form from the Copyright Office, fill it out, and send it in to the government with two copies of the work you’re registering You can request the necessary forms from the Copyright Office’s voice-mail system at +1 202 707 9100 or get them on the Web in Adobe Acrobat format at www.loc.gov/copyright/forms/ You need particular forms for particular kinds of works Here’s a list: Form TX Books, manuscripts, software, and games Form PA Music (in written form), plus films, video recordings, scripts, and plays Form SR Music (recorded) Form VA Drawings, photos, and cartoons Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com Intellectual Property on the Network 517 Under a treaty called the Berne Convention, copyrights registered in any signatory country are valid in all others All major countries of the world are signatories FIGURE 11.1 The U.S Copyright Office Web site Fair Use of Copyrighted Material Copyright law recognizes that a vibrant creative community relies, in part, on artists’ ability to use the creative products of others as starting points for their own creative work Such applications of copyrighted material are known as fair use applications in the law Here are some examples of fair use: Cited excerpts in academic work Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com 518 Chapter 11 Business Concepts Excerpts that appear in a review Parody and satire Reproductions for personal, not-for-profit use These aren’t cast in stone—the nature of fair use is constantly undergoing revision as those accused of copyright violations claim (and sometimes prove to a court) that their use was fair Though no precise statement of what is not fair use exists, the determining factors seem to be the size of the excerpt and the profit motive of the party using the copyrighted material Courts tend to favor fair-use claims presented by nonprofit organizations over those put forward by organizations that have made money from their use of copyrighted material If you’re not making money (or causing the rightful copyright holder to lose money) as a result of your use of brief snippets, you’re probably okay Licensing Copyrighted Products If you want to use a copyrighted work in your own products—and remember, it does not matter whether the copyright is registered with a government—you must ask permission The copyright holder is free to three things: Refuse you permission to use the material Allow you to use the material free of charge, provided you credit the copyright holder Require you to pay a fee for the use of the copyrighted material The last of the three options is called licensing, and it’s a big part of the intellectual property business Licensing deals take many forms and usually state explicitly what rights are being granted and what compensation will be paid for them A writer, for example, might write a story and grant a magazine the rights to publish the story once in its North American editions The magazine would pay a writer a fee for that right The writer would retain the rights to sell the story again for use as part of a compilation put out by a book publisher, without consideration to the magazine The writer would also retain, for example, the ability to license the story to a movie studio for adaptation into a screenplay Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com Intellectual Property on the Network 519 Securing the Entire Copyright If you’re a publisher and want to secure the copyright to a work created by someone else (such as a freelance writer), you can secure the rights by either of two means A work-made-for-hire agreement states that the creator of a work (the freelancer) created it because he was hired by the publisher to so and paid accordingly (or paid something, anyway) Therefore, the publisher has the copyright and the freelancer does not A creator also can transfer the copyright on a work to another entity by assignment Usually, assignment must involve an explicit, written statement that says the original creator is granting her copyright to someone else, such as a publisher Infringement Consequences Copyright, in the United States and most developed countries, is a matter of civil law That is, a copyright holder cannot complain to the government that someone has committed a crime by infringing upon her copyright Rather, a copyright holder can file a civil suit alleging infringement If the civil suit goes to trial and the infringement is found to have taken place, the defendant may be made to pay damages to the copyright holder In point of fact, civil suits are expensive and generally are the last resort of copyright holders who feel their rights have been infringed upon Usually, those using copyrighted material for purposes perceived to be unfair by the copyright holders will receive stern letters from the copyright holder or his lawyer, asking that the use stop If the perceived problem continues, the copyright holder can file suit and fight the matter in court If an infringement is determined to have occurred, the entity using the material without permission may be judged responsible for damages and made to pay money to the copyright holder Trademarks A trademark is much like a copyright except that trademarks apply to words, phrases, and images used to describe products and services (technically, a word, phrase, or logo that describes a service is called a servicemark, but the legal concepts are pretty much the same) The following are examples of trademark-protectable intellectual property: A company’s name (e.g., Netscape Communications Corporation) Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com 520 Chapter 11 Business Concepts A product’s name (e.g., Diet Coke) A logo (e.g., the AT&T globe image) A graphic device (e.g., the Izod alligator) Oppenheimer Wolff & Donnelly LLP, a law practice, has put together a neat FAQ on the topic It’s on the Web at www.owdlaw.com/intprop/trademark/ faq/faq.html Registering a Trademark As is the case with larger creative works protected by copyright, U.S law provides for trademark protection on words, phrases, and devices even if they’ve not been formally registered with the government You can assert a trademark or servicemark right by always printing a TM (for trademarks) or SM (for servicemarks) next to the device you want to protect You can establish stronger legal protection for your trademark by registering it Governments maintain registries of trademarked intellectual property In the United States, the U.S Patent and Trademark Office (USPTO) maintains the list of registered trademarks To register a trademark, you must establish that it represents a unique way of denoting a product or service and is not in use by another entity You must also be actively using the trademark—you can’t register a trademark in anticipation of applying it to a product or service you’ll develop in the future (though this used to be possible) Once you have registered a trademark, you can follow it with the ® symbol to denote the registration You can get further information about registering a trademark at the USPTO Web site, www.uspto.gov/ Using Trademarked Material Trademarks run the risk of bringing about their own demise If a trademarked word is heavily advertised and becomes synonymous with a product or service, it loses its protectability This is why Xerox Corporation is so adamant that people not talk about “making xeroxes” or “xeroxing documents.” The Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com 532 Chapter 11 Business Concepts On still other sites, partnerships denote vendor-customer relationships or a common parent company Sometimes, a small company will describe a betterknown company as its “partner,” no matter how slender the relationship, just to get some rub-off credibility from the name recognition Some companies, such as Sun Microsystems, have formal rules about partnerships A consultant that has passed certain certification tests can describe herself as a Sun partner for her consulting work Free Information Although talk of the Internet as a gift economy has faded, it’s easy to give information away on the global network Indeed, Web surfers have come to expect free information in many cases and can take umbrage at organizations that are stingy with data In many cases, it’s in an organization’s interest to be free with information If having product manuals on the Web can cut down on technical support calls from people who have lost their documentation, then the Web site saves some telephone expenses and a technician’s time The same goes for all kinds of everyday information people once routinely called in to get, often using a toll-free number and an expensive call center in the process Such information includes the following: Credit card balances Frequent-flyer statements Stock quotes Bank statements Store hours and locations Analyze your customer service calls If the operators have stock answers to standard questions, put those answers on the Web Everyone will be happier—and your organization will look better in the public eye New Marketing Challenges With every blessing comes a curse, and there is a considerable dark side to the cheap marketing brought about by the Internet For one thing, your organization’s competitors can promote themselves as easily as your organization can It’s yet another arena for you to fight it out in your media campaigns, and Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com Online Marketing 533 indeed it’s a lot easier for customers to compare competing sites side-by-side than to compare radio commercials There are other challenges: Sites published by customers unhappy with your products and services Communications media that allow rumors to spread very quickly “Disgruntled Customer” Sites It’s always been true that an unhappy customer tells more people about his bad feelings than does a satisfied customer But traditionally, such customers could only share their feelings with a relatively small number of people Now, though, it’s a simple matter for a customer who feels that he’s been wronged to post all sorts of vitriol on the Web When someone searches for the name of your company or one of its products, guess what comes up in the results? Your company’s page, but also the page titled “Why ABC Company is a Scourge upon the Earth.” Surfers read pages like that and weigh what they say against other information they have about your company Similarly, sites like Deja.com (www.deja.com) promote themselves as forums in which consumers can sound off for and against the things they buy A bad review here can really hurt you Your best defense against problems like this is to provide good products and services If you take care of your customers, positive feedback should outweigh negative comments—something potential buyers will notice The High-Speed Rumor Mill Internet-enabled media like Usenet, e-mail, and chat provide customers with new, global forums for their opinions about your company and its products True or not, information about you can circulate faster than ever before You have two responsibilities First, be aware of what’s being said about your organization in the Internet media Monitor the chat rooms in which your customers gather Check in at the Web sites that consumer groups and professional organizations maintain Read relevant columnists’ work Participate in forums, where appropriate, to build goodwill and to establish trust so your arguments against negative comments, when they arise, are taken seriously Second, be prepared to counteract problems when they pop up Recognize your products’ problems; note that you want to fix them and that you take customer comments seriously Offer to compensate the complainer with freebies, if needed Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com 534 Chapter 11 Business Concepts The Business Case for Networks Setting up a network of computers isn’t cheap Doing so requires specialized equipment (such as routers and switches), specialized services (such as dedicated telephone lines and Internet backbone services), and on-site experts (such as yourself) These things are expensive, and they’re not always easy for the people who dispense money to understand Part of your job is to explain the business cases for different kinds of networks You have to be able to explain why they’re good investments Internet Your company’s Internet site is its storefront for most of the world It’s always available and should be used to provide nonstop marketing and customer-service functions that would cost too much to provide otherwise Brochureware Your site can contain basic information about your business—the sorts of things that would appear in a basic marketing brochure Self-service customer information You can reduce the load on a customer-service department by enabling customers to help themselves Marketing materials Supplementing the basics of brochureware, marketing materials enable customers to get the information they want, at the levels they want it One customer might want general descriptions; another might want technical details Ordering facilities Internet sites can generate revenue through catalogs and credit card acceptance Intranet An intranet enables the people in your organization to collaborate efficiently, sharing information and files Intranets use Internet standards, and so employees can conduct business on the intranet with the Internet tools they already know how to use Applications might include the following: Messaging Conferencing Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com The Business Case for Networks 535 Database access News Information libraries Extranet An extranet involves granting certain outsiders limited access to your company’s internal resources You might find it advantageous, for example, to allow a vendor to monitor your level of some raw material and automatically send you more when your supply drops to some prearranged limit An extranet might also enable you to share information with an external service provider, such as a payroll company or a marketing house You might implement the following technologies on an extranet: Shared database access Conferencing Some extranets incorporate Electronic Data Interchange (EDI), which is the automated sharing of information among computers A supplier’s database may automatically transfer data on shipping schedules to a customer’s machine, for example Virtual Private Network A virtual private network (VPN) is functionally similar to a local area network (LAN), except for the fact that some or all of the network nodes are connected by communications channels established on the open Internet Secure networking protocols make it possible to operate a VPN with a high degree of confidence that your data remains confidential The business case for a VPN is strong Your argument for a VPN should hinge on the fact that a distributed network otherwise would require a considerable investment in communications services Here are some advantages: Telecommunications savings Where linking geographically separated network resources required dedicated lines before, a VPN can provide the same connectivity for far less cost Flexibility Because there are no contracts on dedicated-line service, you can reconfigure your VPN more easily than a networked based on traditional telecommunications links Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com 536 Chapter 11 Business Concepts Internet Commerce Internet commerce is any sort of business that is facilitated by the Internet Usually, the term applies primarily to commerce that involves a Web site of some kind There are as many variations to the Internet commerce tune as there are companies on the Internet, but it’s fair to fit the business models into two broad categories Business-to-consumer sites sell to individuals; business-tobusiness sites sell to organizations Business to Consumer The best-known Internet commerce sites have to conduct business by selling goods and services to individual people Typically, so-called business-toconsumer sites involve presenting a catalog of products, a virtual shopping cart in which surfers can store the ones they want, and a credit card acceptance facility Internet business-to-consumer sites offer opportunities to increase sales in ways conventional stores and paper catalogs not There are a couple of strategies you can try: Cross-sell Cross-sell is the process of selling the buyer of a given product accessories and other related products You might design your e-commerce system to present the buyer of a computer printer, for example, with advertisements for toner cartridges, parallel cables, and paper trays Upsell Upsell is the process of encouraging a buyer who thinks she wants one product to buy another, more profitable product Upsell may involve pitching a larger package of the same stuff or a more feature-rich variant of the same model Amazon.com does a great job of cross-promoting its products If you’re looking at the detail page for a particular book, you see a list of other products buyers of that book have purchased If you’re looking at the detail page for a stereo amplifier, you see references to compatible speakers Where making such pitches consistently in a bricks-and-mortar store would require a highly trained sales staff, the same pitches on the Internet require only a well-designed database Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com Internet Commerce 537 Not all business-to-consumer operations on the Internet take the form of storefronts Some sites (such as the Wall Street Journal, www.wsj.com) charge a subscription fee for access to information Others, such as the assortment of Internet stock brokerages, provide some information (such as portfolio tracking pages) free of charge while collecting a fee on other services (such as trades) Business to Business While retailers like Amazon.com and eToys.com get all the headlines at present, many experts predict that the Internet marketplace for business-tobusiness commerce will soon overshadow the retail market by a large margin Business-to-business commerce is exactly what it sounds like—businesses providing goods and services to other businesses Business-to-business transactions can mimic business-to-consumer commerce closely Businesses buy paper clips, computers, motor vehicles and travel products all the time, just like individuals Companies like Dell Computer Corporation (www.dell.com) and the Internet Travel Network (www.itn.net) good business selling to companies, governments, and other organizations this way But a greater potential may lie in providing information services to businesses Trucking companies, for example, typically waste a lot of money moving empty trucks around because the next hauling job usually starts some distance from where the previous one ended There’s a market for a company that finds buyers for the hauling capacity that presently goes unused The great thing about business-to-business work is that companies often buy more of what you’re selling, more frequently, than an individual consumer does The volume of transactions might be lower, but their individual value is higher Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com 538 Chapter 11 Business Concepts Summary In this chapter, you learned about Internet business concepts The most important facts and concepts to know for the i-Net+ exam are the following: Intellectual property Intellectual property laws exist to protect the rights of creators to profit from their creative works Copyright law protects works of literature, music, and other visual and performance arts, including software Copyright law is generally interpreted to allow for limited, free use of protected materials under certain circumstances This is called fair use Trademark law protects slogans, phrases, and visual devices Patent law protects inventions, including devices, processes, and procedures The global marketplace The Internet facilitates a global exchange of products, services, and money, which means buyers and sellers must be sensitive to language and cultural differences It’s relatively easy to collect money from anyone in the world through the use of credit cards, but delivering physical goods can be more difficult Companies and individuals are liable for taxes on the income they bring in over the Internet, even from other countries It’s often worthwhile to hire a lawyer or other consultant in a foreign country in which you want to business, just to be sure you’re complying with relevant laws Internet marketing You’ll have to advertise your Web site in order to draw traffic to it Web banner ads typically are sold based on the number of times they’re exposed to surfers You might be quoted a rate for each thousand exposures An instance of a surfer clicking a banner ad and being taken to the site it’s promoting is called a clickthrough The frequency with which viewers of a particular ad on a particular site click through is called the clickthrough rate Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com Summary 539 You may also choose to advertise your site as part of a webring or on media other than the Internet There are advantages to be realized by putting lots of free information on the Internet Such information can reduce calls to customer support lines and provide customers with a source of help that’s always available The Internet provides customers with an efficient way to broadcast their feelings—good and bad—about your company and its products The business case for networks An Internet site can reduce the load on an organization’s customer-service department and bring in cash through online sales An extranet can make an organization’s interactions with its suppliers and subcontractors more efficient by providing them with easy, automated access to the information they need about your organization An intranet can provide efficient file-sharing, conferencing, and database access to the people in a building, all with familiar and easily supportable Web tools A virtual private network (VPN) cuts down on the expenses of the dedicated lines that were once required to connect geographically separate network nodes Internet commerce A business-to-consumer site sells goods and services to individuals, usually by presenting them with a catalog, allowing them to choose items and then pay for their selections with a credit card A business-to-business site focuses on the needs of corporations, government agencies, and other organizations Such sites sell the goods and information these entities need Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com 540 Chapter 11 Business Concepts Review Questions Copyright law applies to _ A Software only B Works of literature only C Slogans and logos D Software, literature, and works of graphic and performing arts Copyright law prohibits _ A All use of copyrighted material by anyone other than the copyright holder B All unlicensed use of copyrighted material by anyone other than the copyright holder C All but “fair use” of the copyrighted material by anyone other than the copyright holder without permission D Parody of copyrighted works In order to enjoy copyright protection, a work _ A Must be registered with a government copyright agency B Must be an original creation C Must have an individual author D Must not include excerpts of other copyrighted works In the United States, what government agency registers copyrights? A The Department of Justice B The Patent and Trademark Office C The Copyright Office D The individual states Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com Review Questions 541 The process of securing formal permission, perhaps in exchange for money, to use copyrighted material is called _ A Licensing B Rights management C Permissioning D Copyright contracting Two ways to transfer a copyright permanently from the creator of a piece of intellectual property to another party are _ A Work-made-for-hire agreements and assignment contracts B Work-made-for-hire agreements and permanent licensing C Assignment contracts and licensing D Reregistration and work-made-for-hire agreements Trademark protection applies to _ A Logos B Words, phrases, logos, and representative devices C Only words, phrases, logos, and representative devices that have been registered with the Trademark Office D Advertising slogans for as-yet-unreleased products The raised TM symbol denotes _ A A registered trademark B A trademark for which registration is pending C Something for which trademark protection is claimed, even if registration has not yet taken place D A trademark whose validity has been upheld in court Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com 542 Chapter 11 Business Concepts A notable risk assumed by companies that hold trademarks is _ A That the trademarked term will become part of the common vocabulary and therefore lose its protection B That a judge will disallow the validity of the trademark C That another company will come out with a similar slogan or device D That the value of the trademark will fade in the public consciousness 10 A patent secures protection for _ A A physical product B An idea for a product C A software program D A product or process 11 If two organizations invent the same product independently and simultaneously, which enjoys patent protection on the product? A Both B Neither C Whichever one applies for and receives a patent first D Whichever sues the other and wins the right to apply for a patent 12 In order to qualify for patent protection, a product or process must be _ A Useful B Unique C Useful, new, and nonobvious D New and nonobvious Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com Review Questions 543 13 Open source software in the public domain _ A May not be sold at a profit B May be modified by anyone C May not be incorporated into for-profit software D Must carry a copyright notice 14 The most common human language for interaction across borders on the Internet is _ A English B French C Esperanto D XML 15 Dealing with nonnative speakers of your language requires _ A An eagerness to correct grammar and spelling B A tendency to use elaborate colloquialisms C Patience and appreciation of their efforts D A total reliance on translation software 16 You might consider establishing a warehouse in another country so _ A Your tax standing in that country is clearer B You can worry less about delivery times C You can avoid customs duties D You can apply for United Nations subsidies Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com 544 Chapter 11 Business Concepts 17 A Web site posted by a disgruntled customer is best dealt with by _ A Filing a libel suit B Providing honestly good products and services so the positive buzz drowns out the complaints C Attacking the site covertly D Slandering the publisher of the site in newsgroups 18 Placements of banner ads typically are sold in terms of _ A Cost per hundred exposures B Cost per thousand exposures C Cost per hour of exposure D Cost per byte 19 Lots of advertisers pay for their ads with reciprocal ad space or other non-cash commodities Such payments are called _ A Illegal B Nontaxable C Payments in kind D Payment in viewer volume 20 The easiest way to handle intercurrency sales is with _ A Wire transfers B Payment in kind C Interbank transfers D Credit cards Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com 546 Chapter 11 Business Concepts Answers to Review Questions D Copyright protection applies to software, literature, and works of graphic and performing arts C Fair use allows for academic excerpting, commentary, parody, and other applications B Though registration of a copyrighted work with a government agency can help establish the date of its creation, it is not necessary to have copyright protection C The United States Copyright Office handles copyright registrations A The process of securing permission is called licensing A Work-made-for-hire agreements and assignment contracts can transfer copyright from one holder to another B Trademarks protect the words, phrases, logos, and representative devices that denote products and the companies that provide them C The TM symbol denotes an unregistered trademark The ® symbol denotes a registered trademark A A trademarked word that becomes generic loses its protection Aspirin, for example, once referred to a particular brand of painkiller 10 D Patents protect items (products) and processes 11 C In order to have patent protection, an inventor must apply for and be granted a patent by a government 12 C The law specifies that patentable products and ideas must be use- ful, new, and nonobvious 13 B You can sell public-domain software for a profit, or at least try to so You can also modify it as needed 14 A Because there are so many English speakers on the Internet, that language is the default for many international communications 15 C You have to be patient with and appreciative of people who are going to the trouble to accommodate you Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com Answers to Review Questions 547 16 B By establishing distribution centers in other countries with which you a lot of business, you eliminate the time and expense associated with lots of international shipments 17 B You can’t argue with the truth and expect to win 18 B Ad rates often are quoted in terms of some price per 1,000 expo- sures of the ad 19 C A payment in kind is any payment made with something other than cash Such transactions are taxable 20 D Though their issuers collect fees, credit cards allow for easy con- version among currencies Copyright © 2000 SYBEX Inc., Alameda, CA www.sybex.com ... large margin Business- to -business commerce is exactly what it sounds like—businesses providing goods and services to other businesses Business- to -business transactions can mimic business- to-consumer... Internet, but it’s fair to fit the business models into two broad categories Business- to-consumer sites sell to individuals; business- tobusiness sites sell to organizations Business to Consumer The best-known... Alameda, CA www.sybex.com 538 Chapter 11 Business Concepts Summary In this chapter, you learned about Internet business concepts The most important facts and concepts to know for the i-Net+ exam