Complete Case details are given below :
Case Name : Time Warner, Inc. and the ORC Patents
Authors : Paul W. Beamish, John Adamson
Source : Ivey Publishing
Case ID : 901M59
Discipline : Negotiation
Case Length : 16 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
Optical Recording Corp. (ORC) secured the rights to a technology known as digital optical audio recording. During the time it took to negotiate the final transfer of the technology ownership, it was rumored that some major electronics manufacturers were developing compact disc (CD) players that recorded digital optical audio signals. A patent lawyer advised ORC that the compact disc players and compact discs recently released by these companies might be infringing the claims of ORC’s newly acquired patents. Based on this information, the company proceeded to successfully negotiate licensing agreements with the two largest CD manufacturers. The third largest manufacturer, WEA Manufacturing, a subsidiary of Time Warner, Inc., maintained a position of noninfringement and invalid patents. With the U.S. patent expiration date looming, ORC decided to sue Time Warner for patent infringement. When the defense counsel presented testimony that questioned the integrity of the licensing agreement, ORC’s president realized that the entire licensing program was in jeopardy and must decide whether he should accept a settlement or proceed with the lawsuit.
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