Internet Law & Electronic Commerce Exam 2009

Essay 1 (50 points)

Peter recently started a new social networking (“matchmaking”) company named Whistle Stop. Biographical information of users is stored on Whistle Stop servers. In addition, users install a small program (or “APP”) on their mobile phones. The APP works by regularly updating Whistle Stop servers with the location of its users. When one user is in close proximity to another “compatible” user, the mobile phone plays a provocative whistle. The volume and character of the whistle may vary according to the intensity of compatibility. The idea is that the whistle helps promote less formality in meeting and also promotes the likelihood of first-glance butterflies associated with love-at-first-sight. The site’s online address is http://whistlestop.com. The service has been somewhat successful, especially in more urban areas.

(a)   Seeing the success of Peter’s business, Edmund begins a competing business that he calls whistleMATCH available through http://whistlematch.com. Edmund also starts a FaceBook page using his competitor’s name – thus the website http://facebook.com/whistlestop directs users to the whistleMATCH website. What legal avenues are available to Peter to stop what he sees as this unfair competition?

(b) In another genius move, Edmund hires-away one of Peter’s network administrators. The new employee shows Edmund a major flaw in Peter’s security system that allows access to user biographical and location information via the Internet without any password protection. As a way of expanding his growing network, Edmund configures his systems to whistle when one of Peter’s customers is near. Identify the potential legal liabilities raised by this situation.

(c)   It turns out the whistle tune played on the Whistle Stop mobile devices is under copyright. Title to the musical work is held by Lucy while the sound recording rights are owned by the Aslan Corporation. Peter had purchased a digital version of the recording through an online store. Is Peter potentially liable for copyright infringement? What about his users? During installation, a copy of the recording is placed on each mobile device. That recording is then triggered by the proximity signal. Does it help Peter to include a provision in his terms of use that would bar users from suing him (or his company) for copyright infringement?

(d) Diggory is a Whistle Stop customer. However, he went online Friday morning and turned-off his account for 24-hours. You see, Diggory had a romantic date scheduled with Polly and he wanted to avoid any problematic situations. During the date, Polly saw her friend Susan. As Susan approached the couple, her mobile device whistled – indicating mutual compatible between her and Diggory. It is fair to say that the whistle created some tension that lasted for hours. Does Diggory have a cause of action?

(e)   What are the greatest potential legal problems facing this new venture?

16 thoughts on “Internet Law & Electronic Commerce Exam 2009

  1. 15

    This invention was already disclosed in an episode of the tv show “Bones.” However, I don’t believe a whistle sound was involved – just the regular text message tone.

  2. 13

    Part (e), one could sue for the tort of nuisance with all of those whistle sounds going on. The sound at the local Starbucks must be deafing with all of those whistle sounds.

  3. 12

    What are the greatest potential legal problems facing this new venture?

    That the entity that controls the mobile phones OS and/or APP distribution will want a big piece of the action as soon as the thing becomes lucrative.

    What do I win?

  4. 10

    part (b) reminds me that I took a class on Computer Crimes once, and that there is a 1030 issue for access without authorization. Beyond that… well, I’d need to look at my outline.

  5. 8

    “(e) What are the greatest potential legal problems facing this new venture?”

    Child support for Susan and Polly’s babies that will be born 9 mo after.

  6. 7

    “Does Diggory have a cause of action?”

    He has a cause of performing the action of inviting Polly and Susan over for drinks that evening. The cause was the date and the ringtone.

  7. 5

    Diggory is a Whistle Stop customer. However, he went online Friday morning and turned-off his account for 24-hours. You see, Diggory had a romantic date scheduled with Polly and he wanted to avoid any problematic situations. During the date, Polly saw her friend Susan. As Susan approached the couple, her mobile device whistled – indicating mutual compatible between her and Diggory. It is fair to say that the whistle created some tension that lasted for hours. Does Diggory have a cause of action?

    The answer depends on whether Nicholas Cage is playing Diggory.

  8. 4

    part (d), since Diggory turned off his account, Susan’s whistle was likely caused by a detected compatibility between Susan and Polly. So in answer to “Does Diggory have a cause of action?” Yes, Diggory definitely has a cause for some action.

    Sorry, it’s new years.

  9. 3

    an investor waiting to be parted from someone else’s money.

    why would an investor care about someone else’s money or if said investor will be parted from it. Isn’t an investor the one WITH the money to invest?

  10. 2

    The idea is that the whistle helps promote less formality in meeting and also promotes the likelihood of first-glance butterflies associated with love-at-first-sight.

    The typical social networking “invention” is no less inane. I hope you filed on this invention, Dennis, before you posted the exam (assuming you are interested in protecting your rights in foreign jurisdictions). Somewhere out there is an investor waiting to be parted from someone else’s money.

  11. 1

    My answer for part e is contract disputes over ambiguous wording. I may just be dense but I can’t figure out if “this new venture” refers to Whistle Stop or whistleMATCH. There is enough ambiguity that most of either venture’s cash would be drained if they got into a contract dispute that couldn’t be resolved at the summary judgment stage.

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