Since the business has a patent over the item, it can act as a monopolist while determining its profit maximizing level of output and price.…
Product differentiation helps reduce the threat of new entry by forcing potential entrants to an industry to absorb not only the standard costs of beginning business but also the additional costs associated with overcoming incumbent firms' product differentiation advantages.…
supports the trial court's conclusion that Bourque did not assume the risk of Duplechin's negligent act.…
This chapter opens another realm of complexity that I would be of great value to me as an engineer. Coupled with starting a new business idea is a set of rules and regulations which an entrepreneur must be weary of. Some innovation can be patented due to its uniqueness and as an incentive for encouraging more innovation. A long and sometimes tedious process is detail by Dr. Kuratko. Part of the process is keeping evidence of how you came up with an idea, in black and white. I have learned the importance of doing so in my engineering classes and through internships. Patent, Copyright and Trademark law are set to protect the original inventor from people who want derail you venture with counterfeits. Also in this chapter Dr. Kuratko defines the types of business ownership model an entrepreneur can be interested in, with corporations being the largest and most confusing to me. He also states how companies my face doom as bankruptcy and liquidation. This can be exemplified by Trump who filed for bankruptcy several times.…
Evans also quickly proceeded with the rental of a business space to more accurately assess future risks while formulating a business plan, and although she wanted to lead the design technicalities, she did not have the best design proficiency. Her recruitment policy also has some associated risks because her assistants are completing most of the work without a higher level of commitment to the company. Positive relations with important providers in the industry such as distribution channels, suppliers, and showrooms, represent a very important factor for success, but she failed to present her strengths and weaknesses on this matter. While projected licensing revenues were emphasized, Heather did not analyze the effects of indiscriminately name licensing during the 1970s. A competitive advantage for this business concept and protection from copy cats was not mentioned in the plan either and cash flow assumptions were unclear. We know that the margins are high for Heather’s company and that sales are volatile, but she could have included a sensitivity analysis to demonstrate the difference between the best case scenario and what is most likely to…
In the entrepreneurial world, the first phase of the entrepreneurial process is the identification of opportunity, known in the business world as innovation of business patterns (Barringer & Ireland, 2008). If a need exist and is identified during the process, a structural design of how to satisfy the need is articulated and formulated. Opportunities began with the process of identification by responding to question. The identification process begins assessment audiences for the utilization of the product. Potential utilization of the product requires identification as well as an evaluation for discussion. If a current market exists in the entrepreneurial process which requires an assessment of the need for patents. The entrepreneurial process includes identification that is the heart of the process because the process cannot began until a solid idea along with the advancement of evaluated organizational feasibility study. Talent, desire, and abilities happens to promote entrepreneurial launches of…
challenged by the entrance of a competitor able to provide low cost versions of the…
A fear that most companies hold when collaborating with another is of protecting their proprietary technologies. X-IT had this fear as well and applied for a patent. Unfortunately, due to a lack of money and in turn a lack of knowledge power, they were unable to protect their innovation from Kidde. Kidde, with the help of an unethical attorney, worked around X-IT’s still processing patent to “legally” create a similar ladder. Nonetheless, X-IT does hold a fair amount of ammunition against Kidde.…
Tessera can invest their own product lines to produce their inventions. This will protect the inventions from being taken by their licensees. In addition, those manufacturers who infringe will not pay the cheap back damage, but a high penalty based on how many products they produce.…
Cooper. R. G., & Kleinschmidt. E. J. 1987. New products: What separates winners from losers? Journal of Product Innovation Management. 4: 169-184.…
Tessera was an innovative developer company for the miniature technologies which were widely used in the production of consumer electronics devices. Company’s inventions mainly focus on advanced chip packaging for microelectronic devices and image capturing devices. The company practiced what intellectual property attorneys referred to as “ carrot licensing”. Carrot licensing is a model where a company invents and patents a new idea. Then the company is licensing the idea to other companies with the trade secrets and know-how, and helps them to implement the innovation to the production. The opposite model to carrot licencing is the “stick licensing”, in which a company used either the threat of or actual litigation to extract license from target companies. Tessera used to use carrot licensing but they were forced to use the stick a bit more.…
References: Brandon, John. October 3, 2011. How Small Tech Companies Can Protect Big Ideas. Retrieved from http://www.popularmechanics.com/technology/gadgets/news/how-small-tech-companies-can-protect-big-ideas…
In many cases SME’s do not have the resources to conduct a full audit of all its IP and will find it difficult to put a value to each of the components making up an IP portfolio. Putting aside these difficulties, and at the risk of reducing the exercise to the “too-hard basket” it is important for every business to document and value what is, in many cases, its most important intangible assets.…
While “egregious discrimination” might refer to licensors’ conduct that unduly manipulates bargaining power to threaten standard implementers’ investment in developing standard-complaint products, the term “similarly situated” does not have a precise definition. Taking this into consideration, Carlton and Shampine define “similarly situated” as any firm using common component, even when some firms produce more profit than others. When firms derive “the same incremental value” from the patented technology, they contend, they should pay exactly the same royalty…
Firm-specific advantage (FSA) at the firm level manifests itself in a higher productivity of comparable assets (tangible and intangible) than competitors (Caves, 1996). Since imitation of the advantage by competitors entails high costs and high risks,the owner of the advantage is protected for a certain period of time. Since the crucial firm-specific advantages are intangible (including strategic behaviour),they are mobile within the firm at low marginal costs. Hence, integration of value-added activities (Feenstra, 1998) within the firm (i.e., internal exploitation of advantages) is an optimal strategy. Patents is an obvious example of a firm specific advantage…