Earlier quoted context omitted.
Not the OP, but for my money, a company that does that isn't a company to work for. I don't work for free and you shouldn't either.
Honest question: What difference does it make whether you work on a l33tcode question or a real problem in the interview? At least the real problem has a chance of being interesting. Sometimes I do give candidates examples of real challenges we're facing. The purpose is not to get anything for free, but rather to see if they're good at coming up with new ideas. It also gets boring asking the same questions that may o…
It's a real shame in tech with its (past and present) history of open source work and contributions that can be interpreted as such, especially with many projects nowadays being maintained by billion dollar coporations that can certainly pay a candidate for contributions. But that's a huge beast to tackle.
follow up note: I'm not sure if this[0] comment is parody or unironic, but situations like this are exactly what gives the idea such a bad reputation.