Johnson Communications Corporation (JCC) has offered you an attractive position in its financial planning division. The new position would constitute a promotion with a $25,000 increase in salary compared to the job you now have at American Telecommunications, Inc. (ATI). The problem is that JCC wants you to bring the rate-setting software you developed at ATI, along with some rate data, with you to the new job. Even though ATI sells its software to other companies and information concerning telephone rates is available to the public, you know that such knowledge will help JCC significantly in its attempt to redesign its rate-setting system. A a new and improved rate-setting program could be worth as much as $200 million per year for JCC. Let's consider the rate-setting program is available only if it is purchased from ATI. Therefore, the question is whether the information JCC wants you to take with you to your new job is proprietary to ATI? Should the rate-setting program and the rate data be considered ATI's privileged information?

• Is there a red flag with this case? If so, please describe.
• Who do you think owns ATIs rate setting program?
• Does the program belong to the person who developed it, or does it belong to the company?