Linda graduated from UW-L with double majors in marketing and information system
ID: 425567 • Letter: L
Question
Linda graduated from UW-L with double majors in marketing and information systems. After four years of employment with a large software company, Linda wants to quit her job and start her own business. Specifically, in her spare time at home, Linda has been working hard on writing a very useful computer program that helps large companies manage their sales more efficiently. Linda is convinced that there is potentially a large market for this enterprise software and she want to start a company to manufacture and sell this software under the brand name Sales Solutions. ANSWER Q1.
At this point, Linda is also happily married and has a two-year old child. She has $200,000 in savings of which she is willing to invest $100,000 in her new business. She want to keep the rest of her money safe for her child’s future education and her own retirement. Linda hopes her company will be so successful, she can eventually take it public to obtain capital for further expansion. ANSWER Q2.
After Linda’s company is up and running, she needs to hire another software programmer. So she puts an ad in a computer trade publication stating the job requirements. She interviews several applicants and decides that an applicant named Dylan is the best qualified. She sends Dylan an email congratulating him and inviting him to take the position with pay of $80,000 per year and full benefits. Dylan responds with an email thanking Linda but stating that he can only take the position for $90,000 per year and full benefits. ANSWER Q3.
Linda agrees to hire Dylan for $90,000 per year and full benefits. When Dylan starts work, the only paperwork he is given to sign are an I-9 form and tax withholding forms. Since Linda’s company is new, she does not have employment contracts with any employees nor does she have any employee handbooks or other formal personnel policies. After a couple of weeks, Linda begins to realize that Dylan is not exactly a terrific employee. Linda has installed computer usage tracking software on all employees’ computers and Linda learns that Dylan spends most of his time in the office playing computer games and not working. ANSWER Q4.
QUESTIONS:
Q1. What intellectual property right(s) can Linda acquire in her Sales Solutions software in the U.S. and why?
Q2. What legal entity/business organization should Linda use for her company and why?
Q3. Legally, what is Linda’s email to Dylan, and what is Dylan’s response and why?
Q4. What can/should Linda legally do regarding Dylan’s work habits (or lack thereof) and why?
Explanation / Answer
1. Linda can acquire patent to protect the novel idea behind the software, which provides her monopoly for a limited time on the right to make, use and sell the software. She can also get it copyrighted to have exclusive rights regarding source and object of software as well as certain other unique elements. She can use the copyright for duplicating, licencing and distributing the software. She can also get protected the trade secrets for unique elements of the software. Lastly she can protect her trademarks such as name, logo, symbols or other distinct features of the company or the products that can be used to distinguish it from other products or organisations similar in nature.
2. Linda can start as sole proprietership in beginning,and later enter into partnerships to form public limited company to be able to raise money from the public
3. Linda's email to Dylan is an offer of employment and Dylan's response is declining the offer, while being open for negotiation.
4. I-9 is only a employee eligibility verification form, not a written contract of employment. However, a verbal contract between the parties is also valid in this regard. As it is, Dylan is an employee and Linda can initiate a dialogue with him confronting him while he is engaged in unproductive work. If he does not refrain from his habits, she can issue an official warning to him to mend his habits and if he does not comply even then, she can issue him a notice of termination.
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