You meet Ted after work at a local restaurant, The Chaparral. After swearing Ted to confidentiality, you tell Ted what Speil said, and that you are leaving the agency to open your own firm. The sports memorabilia web site will be your entree.

Ted says you he too is tired of being an employee and wants to be in his own business. Ted says that he would like to join you to launch the web site and start a new company. You offer him 50% of the new business if he joins you, and he agrees.

You give Ted your earlier memo on legality and innovation, and he says he is persuaded that Kendrick doesn't own the data. But Ted says he is worried about giving up his job without knowing whether any of the Spiel clients will participate in developing and using the site. Can we float the idea with the clients, he asks? And can we take the stuff he downloaded and developed? Are there any other impediments?

You respond that you would like some time to think through the problem, identify the issues, and propose a plan for what you and Ted can and cannot (lawfully) do. You tell him you will give him a concise but through memo addressing the issues.