Question 1

Money2Play Corporation does not make or sell products or services but buys a patent and asserts it against New Functions,Inc. ,a start-up applications company,demanding licensing fees and threatening an infringement suit.Because of these threats,New Functions is most likely to

A)have difficulty in attracting investors.
B)target other firms with patent litigation to obtain investment capital.
C)cease and desist.
D)collect more capital to fund its operations than without the threats.

A

Accepted Answer

New Functions is likely to have difficulty attracting investors due to the uncertainty and financial risk associated with potential patent litigation. Investors may be hesitant to invest in a company that is being threatened with infringement suits and may choose to invest in less risky ventures instead.

Question 2

Pay-to-Buy.com,Inc.obtains a patent on an online payment system.The patent is vaguely worded and overly broad.In evaluating the patent,a court is most likely to&#8203;&#10;A)have difficulty,resulting in Pay-to-Buy being targeted by patent trolls.&#10;B)apply the patent broadly.&#10;C)issue a vaguely worded protection order.&#10;D)hold that Pay-to-Buy's business practices are illegal.

Accepted Answer

Since the patent is vaguely worded and overly broad, it is likely that others may interpret it differently or believe that it covers more than it should. This could result in patent trolls targeting Pay-to-Buy and causing legal issues. The court may have difficulty interpreting the patent and determining its scope, leading to increased legal battles.

Deck 34: Digital Update: the Problem of Patent Trolls