The case situation involves a creator, Spencer, who designs and develops a variety of intellectual products. Spencer works in an office in his home and uses equipment and supplies that he owns to create work for clients. This case involves Spencer's arrangement to create a digital atlas, what he calls his "Digatlas," for MapTech Corporation. On May 1, 2002, he meets Ben, a contact who told him about MapTech's need for the atlas, at a local coffee shop., They discuss Spencer's creation of the atlas for MapTech and they agree orally that Spencer will design and develop the atlas for MapTech's needs. They also agree that MapTech will only use the atlas for one year since the researchers at MapTech expect the geographic landscape of the world to change within the next year. They agree that the atlas should be completed by August 14, 2002 and that Spencer will be paid a set total sum, but will receive partial payment each month in incremental amounts until the work is completed.

Spencer goes home that day after meeting with Ben and begins work on the atlas. He buys materials to develop a prototype and starts work immediately. One morning, after a week of full work days on the project, Spencer gets a call from his friend, Carmen, who is also a product developer, and Spencer tells her about his creation. Carmen suggests a way that Spencer can add flash to the Digatlas by developing a revolutionary digital mechanism to give it dimension through digital means, while also maintaining its ephemeral, transparent quality. Carmen and Spencer agree to work together to sell the new form of the product to the next company that will pay, while developing the work with the funds that Spencer receives from MapTech. Carmen agrees to share half the profits that Spencer receives from MapTech and then work together to produce and market duplicate products to future clients later under the "Digatlas" label, again, sharing the profits and liabilities equally.

Spencer designs and codes the digital product while Carmen creates the enhancing mechanism that makes the atlas work in its multidimensional form. They are so enthused about the development, they work in Spencer's home office, using his equipment for two months and finish developing the product ahead of schedule. It is at this point that Spencer finds that MapTech refuses to pay him further and refuses to return the completed digital atlas to Spencer because it claims that the Digatlas caused eye damage to two MapTech employees who were so fascinated with the product that they stared at the light beams that display the digital information too long. He and Carmen also learn that Ben is the corporation president's brother-in-law and does not actually work for MapTech.