QUESTION 2

ANSWER ONE OF THE TWO QUESTIONS. EITHER QUESTION A OR QUESTION B.

QUESTION A:

Brooke and Tracy are recent graduates who work for a company that sells access to a cloud-based contact management system. They each earn between $50,000 and $70,000 per year. Working nights and weekends, they are developing two games for mobile devices. One game, Treachery and Towers, is nearing completion. The other game, Thirteenth Ring, is still in the early stages. Brooke came up with the premise for each game and began work on the underlying scripts, but Tracy finished the underlying scripts and is doing all of the coding. Taylor is a friend of Brooke's who wants to invest in the business, and the coding would go faster if Tracy did not have to work so many shifts at her second job.

Brooke owes $12,000 in school debt. Brooke owns a 10 year old Honda Civic and has saved $2,000 towards a trip to Iceland. Tracy works a second job in retail at an electronics store because Tracy has $60,000 in school debt, $3,500 in consumer debt and often struggles to pay the rent for the apartment that Tracy shares with Brooke. Taylor has no debt and has $20,000 in savings, owns a new car and recently inherited a cottage near Minden from a grandparent. (i) What structure should they use for the business? Explain why your recommended business structure is a better choice than the other possible structures.

QUESTION B:

You and another graduate student (Mo) have developed an artificial intelligence (AI) that creates video games. It was trained by being fed video of gamers. Some of the video was captured by the two of you in the lab. The rest came from: (i) the local gaming community submitting videos of themselves playing to be used; and (ii) Twitch. The AI has developed approximately 100 games, and three of the games are fun to play. The three good games are called: (i) AI43 ALPHA; (ii) AI43 BETA; and (iii) AI43 GAMMA. The other graduate student wants to sell the IP rights in AI43 ALPHA and AI43 BETA to a gaming company that is interested in them. AI43 GAMMA was posted in a password protected portal, and the gamers who provided video footage were given the password so that they can play the game. One of those gamers has posted the game online for anyone to play and is earning ad revenue from the site where the game is posted.

Identify the legal issues that you and Mo need to think about. Explain each issue identified and propose an appropriate response to it.