You are the vice president for software development at a small, private firm. Sales of your firm's products have been strong, but you recently detected a patent infringement by one of your larger competitors. Your in-house legal staff has identified three options: (1) ignore the infringement out of fear that your larger competitor will file numerous countersuits; (2) threaten to file suit, but try to negotiate an out-of-court settlement for an amount of money that you feel your larger competitor would readily pay; or (3) point out the infringement and negotiate aggressively for a cross-licensing agreement with the competitor, which has numerous patents you had considered licensing. What are the pros and cons of each option? Which option would you pursue and why?
You are the vice president for software development at a small, private firm. Sales of your firm's products have been strong, but you recently detected a patent infringement by one of your larger competitors. Your in-house legal staff has identified three options: (1) ignore the infringement out of fear that your larger competitor will file numerous countersuits; (2) threaten to file suit, but try to negotiate an out-of-court settlement for an amount of money that you feel your larger competitor would readily pay; or (3) point out the infringement and negotiate aggressively for a cross-licensing agreement with the competitor, which has numerous patents you had considered licensing. What are the pros and cons of each option? Which option would you pursue and why?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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12 You are the vice president for software development at a small, private firm. Sales of your firm's products have been strong, but you recently detected a patent infringement by one of your larger competitors. Your in-house legal staff has identified three options: (1) ignore the infringement out of fear that your larger competitor will file numerous countersuits; (2) threaten to file suit, but try to negotiate an out-of-court settlement for an amount of money that you feel your larger competitor would readily pay; or (3) point out the infringement and negotiate aggressively for a cross-licensing agreement with the competitor, which has numerous patents you had considered licensing. What are the pros and cons of each option? Which option would you pursue and why?
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