(1) During their spare time in college, Anders and Michael have developed software to regulate
traffic on internet sites. Their product is very original, and they have applied for a patent. They
estimate that there is an 80% chance of their patent being approved.
Last week, Anders and Michael have presented their ideas to Singular Inc., the dominant
player in this market, after Singular had signed a confidentiality agreement with Anders and
Michael. Yesterday, Singular announced a new software product that looks suspiciously similar
to the software that Anders and Michael have developed. Anders suggested to sue Singular
immediately, but Michael felt they should wait until they receive notification of their patent
(which is still pending). Michael reasoned that their case will be much stronger if they had a
patent on the product.