http://tw.myblog.yahoo.com/yingshu1222/article?

mid=183&next=182&l=f&fid=14

Technology Management: TIME WARNER INC. AND THE ORC PATENTS For a patent licensing program to succeed there must be some primary prerequisites for both parties of buyer and seller. To begin with, in the patent holders point of view, even if he or she a lready holds the patent of a certain product, these patent holders should still requests numerous v erification and approval from several professionalism, organization members, academy and engi neers in the related field. This is to ensure the patent license truly has its own commercial value a nd market benefits, which in order to set a reasonable and appropriate amount of royalty. On the other hand, to those buyers who wish to purchase such patent, they should carefully inspect, sele ct the patent and its content before applies the license, especially to those patent which are still u nder application or controversy, since these patents remain with many unknown areas. If one has paid the patent fees which still remains with certain unknown areas, it is considered to be an unw ise decision regardless to the amount of the cost. Finally, before the chain reaction of complicate d business program starts, both buyer and seller should finalize the licensing contract. Make sure both parties are clear about the content and rules they should comply with. This will be the basis which both parties are standing on in terms of all issues with rights and obligation. Before Sony, Philip and other manufacturers turn down the offer of certain patent license, the y need to consider if their own product has received patent or was it under patent license protecti on. Regardless if ORC wish to receive the actual royalty or to use the patent as a business tool fo r market competition, in order to weaken the competitors market, filing a lawsuit will be ORCs final step. Generally speaking, for those manufacturers who did not purchase the license will hav e to face the worst case scenario of been sued. Since patent license may play an important role w hich can directly affect on companys development and management. Also monopolization and c ontrol of the patent license could be related well to market profit. John Adamson may made a mistake on trying to protect ORCs patent rights and interest wit hout carefully plan and reconsider in many ways who in the end decided on filing a lawsuit again st the tort manufacturer. In fact, it is quite expensive to go to court in the States. Company should be able to control and manipulate its income source and litigation related fees beforehand. Howe ver, our group considered that the meaning behind an enterprise who has been sued may not be t otally negative. Generally the defendant is the winner in the current market. Only the appropriate manipulation of the suing plan can help to fight against the battle. Otherwise, a lawsuit can actual ly reverse the situation within the competition. Although ORC has the patent, which he or she ha s the predominance position in the competition, but as soon as ORC enters the litigation process,

elements such as combination of both parties license and capital of the company will become th e key for the tort partys response strategies. The key of an enterprise to stand out in international competition is whether they can grab the invisible assets. The winning and losing of modern day competition usually lies in patent licensin g. Patent license are like the circulate currency of developmental achievement. It can be transfor m into opportunities that will lead the market product and business growth, as well as the useful f ighting tool against competitors which helps to increase the currency flow and profit as an advant age in the marketing strategy in the future. Our group sees patent as the best marketing tool for a company to create more competition vantage because of its legal protection due to monopolizatio n which results in strong exclusiveness. Generally speaking, appropriate spending range of a companys budget should include enterp rises internal staff training and customers product usage training, etc. As for the main source of economical profit, it should come from whether existing professional abilities can be combining with new development technology and invention. We considered the budget and content of the re search plan should be presented to Canadian government for more communication and coordinati on through patent application, in order to protect the license. Thus to creates more power of defe nse for the enterprise and be able to control the market. Company can also negotiate with other m anufacturers, exchange licensing. From there companies can solve the quarrel of licensing betwe en corporations and elevate to international business platform. For this reason, the development a nd protection of patent rights can be well counted as maintaining corporations internal opening a nd increase competition abilities. In the States, one can apply for patent license litigation to the federal court against patent tort issue. However, if the defendant loses the lawsuit, he or she will have to compensate three times the patent costs as punishment and related lawyer fee for deliberately torting the license. Also, if defendant wishes to continue using the license then he or she will have to pay the royalty. During the litigation period, patent holder or ORC can ask the court to give a restraining order to the def endant to continue to produce and selling the torted product. Nevertheless, if Time Warner Corpo ration already begins effective defense during the lawsuit, it is likely they will file a counter char ge against the plaintiff or even start an independent lawsuit. This action could possibly counterac t the effect of ORCs litigation and elevate the willingness of ORC to reconcile. Moreover, once t he condition of the lawsuit reversed, the other patent program of ORC could be in danger. In ord er to protect his or hers current licensing program plan, Adamson are most likely to compromise d in a way or another.