Case Analysis on Will Our Partners Steal Our Ip?

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TINDOC, MIA ELLENER N. Operations Management – July 05, 2014 WILL OUR PARTNER STEAL OUR IP? A maker of hybrid-car components struggles with the risks to its proprietary technology. By: Willy C. Shih and Jyun-Checng Wang A CASE STUDY/ANALYSIS EXECUTIVE SUMMARY: Pime ElektroTek is a Taipei-based company which manufactures simple power supplies for hybrid electronic power trains for automobiles. To established advanced position in the electric vehicle markets, Prime managed a deal to be a component supplier of Blue Sky Vehicles which is a State-Owned Enterprise (SOE) in China. Prime’s component or the vehicle control unit is to be used by the Blue Sky in producing prototyped vehicles. This is not the first time that Prime had been contracted as supplier of component vehicle, it had been outsourced in the past with the same services. BUSINESS CHALLENGE: Both Prime and Blue Sky have their business interests to be protected and achieved. Prime wants to maintain ownership of its component’s IP while gaining leverage in the electric vehicle market as Blue Sky being the channel. On the other hand, Blue Sky will only accept such vehicle control unit on the condition that the Prime’s IP be owned by them, if not, the former will outsource other providers that would offer the whole package – the component and the IP. RESPONSE: Literally, there will be no “PARTNERSHIP” between Prime and the Blue Sky once the latter have bought ownership of the former’s IP. Thus, offering Prime a short gain in the deal, far from its interest in securing advance position in the electronic vehicle market. The following pro-active recommendations or business approaches can be considered by Prime: 1. Explore other companies where Prime can sustain ownership of their IP while enjoying full benefits of being a component supplier; 2. Execute either: 2.1 Exclusive License Agreement with Blue

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