The purpose of this case study is to help students recognize the relationship between intellectual property (IP) rights and corporate strategy. We do this by learning what is a rather unusual circumstance today in which one firm is able to provide what is perceived as the boundary IP "real estate", which blocks competitors from "practicing" in a large part of the field. Those who have decided to sign a license agreement must pay a high fee for the license and, therefore, help to fund the company R & D. The company, meanwhile, must balance the immediate benefit, not dilutive funding received from license fees compared with the favorable potential future competitors. Case, setting the trial, it would seem, the secret question: is one of the owners of key patent application prosecution correctly. Understanding of the question requires students to gradually build up an understanding of some key aspects of U.S. patent law. Then the bonding company's strategy and how it is driven by IP position, students can understand why the trial is such a high rate of gambling.
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by Willy Shih, Sen Chai Source: Harvard Business School 21 pages. Publication Date: September 1, 2010. Prod. #: 611009-PDF-ENG
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