1. You have three (3) hours to complete this exam.

2. This is an open book exam. You may use any written materials.

3. There are two (2) essay questions on this exam. Each question is worth 50 points. I suggest you spend 1/3rd of your time on each question outlining your response, and then write for the remaining time you allocate for each question. If you use the full period of three hours, this would mean outlining for 30 minutes and writing for 60 minutes on each question. Each subpart and subissue is equally weighted for grading purposes, so divide your response evenly among the subparts - do not write a full answer for one part and a short answer for another part. Answer each question as fully as you can, citing any appropriate cases, industry standards, and statutes that are relevant.

4. Please answer these questions in the blue books provided to you. Write only on the right hand side of the page (skipping a page each time) and double-space your work. Please write legibly. If I cannot read your response to a question, your grade will be adversely affected.

5. Write your exam number on your exam envelope. Put student exam # at the top of this page, each page of questions, and each blue book. Do not use your name, student ID number, Social Security Number, or in any other way identify yourself on any exam materials.

6. At the conclusion of the exam, return all exam materials to the exam envelope and submit it to the proctor. Do not seal the envelope. Students who do not return all exam materials at the end of the exam may not be graded.

Good luck!

Question No. 1 (50 Points)

You work in a law firm in Seattle. Your firm represents Macrohard, Inc., a huge software company that dominates the software market through Doors, its operating system – which is used by 85% of all personal computers in the world. Moon Microsystems, a rival company, has come up with Floors, a competing operating system.

In an effort to maintain their dominance in the operating system market, Macrohard grants licenses to application software developers which allow those developers to see and use the copyright protected source and object code of the Doors system, in order for those developers to write software that is compatible with the Doors system. Macrohard’s license agreement provides that these developer/licensees may not write software for any competing operating system, and that all software written under the license must require that consumers use it on a Doors system. The license also requires that those users must also buy the Doors Utility and Security software system – a system Macrohard recently launched with little success. Macrohard hopes that the Doors Utility system will take market share away from Norton, the leading utilities software.

Borders Software Company is a Macrohard licensee. Borders created a word processing software system for use by Macrohard on computers using the Doors system. Recently, Borders announced creation of a new version of their word processing software, which is designed to run on Moon Microsystems’ Floors operating system. Borders also notified Macrohard that Borders would no longer require purchasers of its software to also purchase the Doors Utility and Security system.

The senior partner in your firm has asked you to draft a memo for her which details what rights and causes of action (claims in litigation) Macrohard has against Borders, and what defenses Borders will raise in response to any litigation filed against them. What is your response?

Question No. 2 (50 Points)

Your client is Acme Cat Products, a U.S. company. Acme manufactures a catnip product (catnip is a leafy plant that has a semi-narcotic effect on cats), which it calls KrazyKat Katnip. Six years ago, Acme obtained a U.S. trademark for the name KrazyKat Katnip. Four years ago, Acme obtained, and still retains, the domain name KrazyKatKatnip.com. The KrazyKat Katnip product is sold throughout the U.S. and Europe.

A French company, KoolChat, has just developed a new catnip product, which it calls Chat Lunatique (translated into English, this reads Crazy Cat). Koolchat has registered ChatLunatique.com and has filed an application under the Madrid Protocol to register a trademark in the European Union for the name Chat Lunatique. It has simultaneously begun shipping its new product to U.S. cat product wholesalers and retailers.

At your client’s request, you recently sent a cease and desist letter to KoolChat, demanding that they stop marketing Chat Lunatique. In response, the web master at KoolChat has launched an assault on the Acme web site, flooding it with over 250,000 emails a day, protesting that Acme is attempting to bully and intimidate KoolChat.

Acme’s President asks you what actions the company can take against KoolChat, and in what country can those actions be prosecuted. The president also asks you whether any judgment obtained in the U.S. against KoolChat can be enforced in France. What is your advice?

END OF EXAM