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Question
Arcadia Cosmetics, a beauty company, hires Mara as an independent contractor to design a packaging concept for a new product. The engagement is in writing and states: "All works created under this engagement shall be treated as works made for hire under Section 172.2 of the Intellectual Property Code; Arcadia Cosmetics shall own worldwide rights, including derivative works." Mara uses Arcadia’s software, stock images, and lab facilities. After six months, Mara resigns and starts her own design studio; she later offers the same packaging concept to a rival cosmetics company. (a) Who owns the copyright in the packaging concept? Is the packaging concept a "work made for hire" under Section 172.2? (b) If Arcadia desires exclusive ownership of the packaging concept and all derivative works, is a separate written assignment of rights required under Section 175? Explain, applying the facts. (c) If Mara reproduces and distributes the packaging concept to the rival, what remedies may Arcadia seek under Section 181?