Pete Is an Accountant and Judy Works in a Bank

question 52

Multiple Choice

Pete is an accountant and Judy works in a bank, but every evening of last year they worked to create a clever computer game. When they finished, they had no difficulty in gaining the interest of a publisher. Pete and Judy hired a lawyer to draft a licence agreement in which they would give the publisher exclusive rights to sell the game in North America for royalties based on gross sales. When the game was published, the advertising was rather vulgar but acceptable to Pete and Judy. They learned, however, that there was a further change - the villain had been changed and clearly represented a world leader of an Asian country. Pete and Judy were embarrassed and outraged. On these facts, which of the following is true?

• A) They have no cause of action because once there has been an assignment of rights, the creators would not have their name on the product and thus no right to sue.
• B) They have a cause of action, even though there has been a partial assignment, if the modification is prejudicial to their honour or reputation.
• C) They would have a cause of action only if the contract provided that there should be no alterations without their consent. Such a change would then be a breach of contract.
• D) There is no protection here since a game is not something that can be copyrighted.
• E) They have no protection here since they failed to register their copyright in the game.

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Definitions:

Identical Products

Products that are exactly the same in every feature, often used in economic models of perfect competition.

Collusively

Acting in coordination with others, often in secret, to limit competition and manipulate market outcomes, such as setting prices.

Product Demand

The desire and willingness of consumers to purchase a particular good or service at a given price.

Oligopoly

A market structure characterized by a few firms dominating the industry, leading to limited competition and potentially higher prices for consumers.