Ted is an officer of Watson, Inc. Ted knows that a Watson engineer recently developed a new, inexpensive method for collecting, storing, and converting the energy from the sun to power mobile devices. Ted takes advantage of this information to buy Watson stock from Julie and, after the discovery is announced, to sell the stock to Remy at a profit. Julie claims that this is a violation of federal law. Is Julie correct? If so, what federal law has Ted violated, and what are its possible penalties?
Henry is a director and officer of Sony, Inc. Henry makes a decision that results in a dramatic decrease in profits for Sony and its shareholders. The shareholders accuse Henry of breaching his fiduciary duty to Sony. What is Henry’s best defense against a lawsuit from the shareholders? Make sure to explain why. Later, the Sony board of directors considers a resolution for the firm to expand operations and compete with a new international firm, Samsung, Inc. Henry is a director and shareholder of Samsung as well. What is Henry’s responsibility in this situation?
Border Barnes Books (BBB) compiles, copies, and sells reading materials to students on the instructions of their professors, who indicate which parts of which publications should be included. These include texts published by Friendly Reads, LLC. BBB does not obtain the permission of Friendly Reads, or any of the other original publishers of the copied materials, and does not pay royalties on the sales of the compilations. Friendly Reads and others file a suit against BBB, alleging infringement of the plaintiffs’ intellectual property rights. Which type of intellectual property is involved in this situation? What is BBB’s likely defense? How is a court most likely to rule? Explain.