5, ABC, Inc., is involved in litigation with its employee, Susan Johnson, regard

Question

5, ABC, Inc., is involved in litigation with its employee, Susan Johnson, regarding ownership of intellectual property. The litigation was filed in federal court in the Western District of Kentucky, as ABC's principal place of business is in Bowling Green. ABC argues that for more than twenty-five years, the Sixth Circuit courts have ruled in similar cases in such a way that requires this Court to rule in ABC's favor in this case. Is this argument valid? Does Susan have a counterargument? Explain your answers. (5 points) 6. Compare and contrast the various business forms on the issue of personal liability of owners. (5 points)

Explanation / Answer

5. The argument presented by ABC Inc is not valid. However when there is a litigation involving the ownership rights of an intellectual property between an employee and employer, the litigation usually goes in the favor of the employer. This is so because the employment of the employee is bound with the employer and so all work conducted by the employee, during his or her tenure with the company, will be considered as the property of the company.

If there is any kind of compensatory benefit which the employer is garnering from the IP, Susan can claim a part in that benefit.

6. The various types of businesses and the liability issues in each are:

Sole Proprietorship

General Partnership

C Corporation

S Corporation

Limited Liability Company

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