Dispute Resolution and Bard

842 Words Nov 18th, 2012 4 Pages
<C.K. Clardige, Inc. Case>

1. What are the interests in this case of the various players in the Varacil market? 1) Tolemite This company developed Varacil production patent in the market. Tolemite had a monopoly in this patent and this company licensed this skill to BARD. Tolemite took a royalty from BARD about 4% amount of sales. 2) BARD BARD is the number one firm in the Varacil market. They had an overwhelming market share in Varacil market. They had given royalty to Tolemite for using producing skill. Furthermore, BARD received rights to sublicense to other Varacil producers who became interested in the process. This will also give BARD good revenue model. 3) C.K. Clardige(CKC) CKC is in the
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It means Tolemite’ patent is invalid, so BARD don’t have to give any royalty. This will strengthen the first position of the Varacil market. In this reason, BARD have to ponder how make the largest advantage in this suit. 3) C.K. Clardige(CKC) : How to make the smaller disadvantages? CKC is the weakest position in this suit. If they win the court, they don’t have to give royalty to Tolemite. But BARD also didn’t have to give any royalty. After this result, competition between BARD and CKC will be more intensified. The result of competition will make huge damage to the CKC because BARD is more powerful company in this market compared to CKC. On the other hand, failing in the court also make damage to CKC. The will lose all of competitive advantage in the market. They have to give 10% royalty for 7 years even though BARD give only 4%. This suit will make only damage to CKC regardless of the result.

Purcell must take a settlement with Tolemite. Because this suit is just make a lot of cost without any advantages. The matter is the way to make the deal and generate amount of royalty or options. The break-even curve of this court is like ‘Figure B’.
This showed that 7.5% of Royalty will be the middle of the negotiation. But this didn’t contain any cost of suit. So the royalty which CKC will give will be little bit lower than this break-even prediction. Moreover, CKC should remember that BARD had given only 4% royalty to Tolemite and the fact
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