General instructions:

• Read each question carefully before answering so that you answer the questions completely
• This evaluation counts for 40% of your overall course mark
• Please answer all questions

Question 1

Carl Has often dreamed of running a YouTube channel as a career following a short but very successful career as a corporate lawyer. His true passion is filming his ants, so he decided to start a YouTube channel with videos of his ant farms.

After some time, the videos get some attention from other like-minded ant-lovers.

He calls his channel The ANTenna and hires someone to design a logo for it.

In August, after three months of posting videos, he receives a cheque from YouTube for $7,000. He was making much more in law, but it was not fulfilling. He now needs to upload more videos to make more money, so he invites strangers on the internet to submit their videos to The ANTenna, where he will post them.

A) what is the best structure for Carl’s business and why? 4 marks

B) what steps can Carl take to ensure he is not infringing third party IP rights in operating his channel? 4 marks

C) Carl has devised a brilliant new way to build an ant farm, but he doesn’t want to be a patent owner. How can he best use this invention to grow his business? 3 marks

Question 2

Jeannie is a well-known distributor of Documentary films. She lives in a big house and runs an extremely profitable business.

For many years, Jeannie has been selling a series of a famous scientist giving lectures. At first, she did so under contract, but she was not very good at selling this particular content, and didn’t make any money. In fact, she lost about $10,000. Her contract stated that “her rights would continue until she had made a profit or broken even”.

Even after the scientist passed away, she spent another $10,000 to capitalize on his death, but she was not able to increase revenues. The scientist’s widow was not happy with the performance of her sales (given that she would participate in any profits), and Jeannie had stopped sending financial reports, feeling that all hope of profit had been lost.

The widow asked to terminate the rights, and Jeannie agreed, but Jeannie’s employees didn’t turn off all of the digital channels where the series was shown. There were also still thousands of DVDs in the marketplace and at Jeannie’s warehouse.

The widow has sued Jeannie for $100,000 for damages pertaining to breach of contract and copyright infringement.

A) based on the facts as you know them, does the widow have a strong case, why or why not, and what other factors might help you determine a better answer? 6 marks

B) how can Jeannie decide what is a good amount to try to settle the claim at? 4 marks

C) what are other potential settlement options that do not involve the payment of cash? 4 marks

Question 3

Pat’s production business Koolaid Limited exists to help develop movie ideas. But Pat has no idea how to actually make a film and be in charge of that many people, so Pat hires a famous director, Joe, who has assured Pat that Joe can write and produce a film, but they’ll hire a less expensive director to direct. Joe will also contribute $50,000 cash and defer his writing and producing fees, in exchange for favorable terms on the back end.

As luck would have it, Pat’s idea, tentatively entitled, All the Queen’s Ladies, finds significant interest from several producers and financiers for the film to be made in Canada.

Joe had begun working on the project with Pat, and drafting a script, but they had not signed the contract yet to put the terms of their relationship in writing.

A) is Pat’s business incorporated or not, and how do you know? 2 marks

B) a major studio approaches Pat and wants to make the movie without Joe. Does Joe have an enforceable contract, and who might own the script drafts that Joe had begun working on? 8 marks

C) if Pat decides to reject the studio deal, how might he find funding for his film, which is budgeted to cost $6,000,000? 6 marks

D) Patrick Adams (an actor, and a Canadian citizen) had committed to the lead role but had to drop out at the last minute due to his being offered a Disney contract. Seth Rogen is available to step in, but he costs a lot more and lives in LA.

i) what steps would the production need to take in regards to finding a replacement for Patrick Adams? 3 marks

ii) a distributor who has committed money to the project was promised Patrick Adams in the lead and isn’t happy about the potential change to Seth Rogen, what can be said to alleviate their concerns? 3 marks

iii) Pat wants to use Seth Rogen, but needs more money, what are Pat’s options assuming the budget had already included the standard line items? 3 marks

Question 4

Stan started a tv production company with three of his friends. They were all equal shareholders and directors of the company. Stan, the main talent among his friends, was named president, and did most of the legwork. The others provided needed funding.

Over time, as the successes of the company grew, the board became more opinionated and it became difficult for Stan to make everything work as smoothly.

One of the other board directors, Charlie, wakes up one day to see that an actress in one of the tv shows has accused Stan of sexual assault and abuse of power.

Charlie calls a board meeting.

A) in the context of corporate social responsibility, how would you apply the main factors that a company must consider with respect to the Stan issue? 8 marks

B) what would be an appropriate way of handling this matter? 4 marks

C) who are the stakeholders that would be impacted by any decision regarding Stan, and how would they be affected? 8 marks