1. Consider the difficulties Tessera has faced in getting paid for its chip scale packaging technology. What alternatives did it have monetizing this inventions? What are the pros and cons of its current and these alternative strategies?
The licensing model of Tessera in the late 90’s majorly involved carrot licensing deals. In such deals the company would licence their patents and trade secrets related to in-house developed revolutionary chip manufacturing technology. The advantage of this model was that it gave the company an opportunity to integrate its technology into the evolving semiconductor supply chain. There were certain drawbacks to this model. Firstly, these deals were quite lengthy as they would involve a number of steps such as pilot production, in house training and technology transfer. Even after these steps were perfectly executed, revenue from the deals were dependent upon the commercial success of the clients product. Tessera also had adoption issues, especially with its chip scale packaging technology. Switching over to this new technology involved a lot of capital risk and no company was ready to radically modify their manufacturing line. So Tessara not only had to demonstrate that its technology was better than the conventional technique, It also had to set up huge manufacturing lines on its site to show the commercial viability of the technology. This involved years of R&D and millions dollars worth capital investment. It was also very hard for them to convince other companies restructure their expensive assets and to use Tessera’s technology on their circuits. As mentioned earlier, Tessera’s revenue were dependant upon the success of their clients technology, i.e. the volume of the chips produced. In man...
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...rce analysis on the industry. There is a low level of competition as this is the first company to develop this technology. Hence there is a very low chance of new entrants as such an innovation would take time and resources. Tesera has bought the rights of its closest competitor Kronos.There is a moderate threat of substitution as the manufacturers can still use the the traditional fan technology. This wont be factor when computer devices start becoming smaller in size. They may face some buyer power as the customers may have huge demand once their technology gets widely adopted. The supplier power does not matter in this case. Hence according to the above analysis, Tessera can play to its strength and become a contract manufacturer. The only drawback is that this strategy can involve a lot of capital investment, but it surely does protect its IP rights and revenues
According to our textbook, “Real property constitutes land and all things permanently attached to it (i.e. a house, a tree or coal below land). Intellectual property such as copyrights, patents and trademarks is personally owned but generally treated as a separate form of property by the law. Personal property is characterized by its portable nature; it can be carried from place to place (i.e. tangible personal property or intangible personal property)” (Roger, 2012).
The existence of many large manufacturers in addition to the continuous entry by smaller manufacturers results in limited differentiation and decreased competitive advantage among PC manufacturers. All manufacturers have access to similar suppliers and therefore have the same buying power especially for processors which are sold at the same price to all manufacturers. It is clear that the competitive advantage in the PC industry is not sustainable as easy replication by competitors promotes price wars which lower profit margins for the industry as a whole. Ultimately, high competition and price fluctuations have led the PC industry to low profitability.
...nths they would need to produce a high volume with low margins and this was not possible at the time of release and the project was scrapped.
“Copyright is a fundamental right of ownership and protection common to all of the arts” (O’Hara & Beard, 2006, p. 8). “It is a form of intellectual Property (IP)” and it gives the owner exclusive rights to the copyright (O’Hara & Beard, 2006, p. 11).
At the moment, Xerox had two clear distinct options. First option is to stick with what is best at printing, copying and delivering exclusively the Book-In-Time technology. Meaning, selling Book-In-Time equipment to all those elements of the value chain t...
...cing crystalline silicon and vertically integrate their manufacturing process, therefore further weakening the bargaining power of suppliers.
Xerox is the world’s leading enterprise for business process and document management. They offer a number of products and services in the business industry. Ranging from their ever recognizable office equipment which include printers, copiers, multifunction printers and supplies. Since xerox was founded on the xerography method they have come a long way technically and globally from a simple copying machine company. They constantly strive to bring to market the most technologically advanced and functional office equipment available to market. Xerox understands that they have a large customer ba...
The World Intellectual Property Organization, Intellectual property is the ‘products of the mind: inventions, literary and artistic works, any symbols, names, images, and designs used in commerce’. Intellectual Properties such as Patents, designs, trademarks and copyrights are protected by laws .The US government offers different types of protection for these properties. The Lanham Act (15 U.S.C.A. section 1051 et seq) also known as the trademark act of 1946 provides protection for trademarks. A trademark is defined as a name, a word, a symbol, or device or any combination thereof, adopted and used by a manufacturer or merchant to identify his goods and distinguish them from those manufactured and sold by others. (Miaoulis 1978)
There are many reason that why is it important to protect one’s intellectual property. Some of the reason are Creator being accused as a theft, Loss of Reputation, Loss of income, Loss of Asset and Loss of Authority Rights.
The PC industry is highly competitive and constantly changing as technology evolves and customer needs change. Some of the top competitors in the PC industry are IBM, Hewlett-Packard, Dell and Apple. Theses rivals are constantly jockeying for the top competitor’s position. They compete in prices, product innovation, advertising, etc.
In 2010, because of its innovation strategy and acquisitions, Lenovo became one of the world’s largest PC producers by having achieved a considerable market share (Lenovo 2013b).
...market share, Intel progressively reduced licensee and developed process and manufacturing infrastructure to manufacture chips by itself. Thus, it contained the “profit pool” in its value chain. Thereafter, successful tie-ups with ‘horizontal’ complementors like Compaq 7 Microsoft led to wrecking of IBM’s hegemony. With established leadership in microprocessor industry, Intel strategically started ‘Intel Inside’ and ‘Runs better on Pentium processor’ programs to improve brand recognition. As more and more end-customers identified Intel and microprocessor as the most important component in a PC, Intel could now command higher power and bargaining position with OEM and software manufacturers. This ensures demand-side control.
During 1998-2003, SEC invested $19 billion into chip factories and $17 billion into manufacturing facilities for TFT-LCDs, which would be a major component for flat screen TVs and computer screens. Even though SEC was focused in the manufacturing process, it didn’t make SEC a rigid company.
Sales: SIA's revenue has been increasing for the last 2 years since FYE2005. However, this growth has slowed down from double digit growth to 8.6% recently. This is not a concern as SIA is still considered as one of the more profitable companies in the industry as shown in its Net Income and Operating profit ratios. With the new addition of A380s they will also be able to charge higher prices.
Intellectual property is information, original ideas and expressions of the persons mind that have profitable value and are protected under copyright, patent, service mark, trademark/trade secret regulation from replication, violation, and dilution. Intellectual property includes brand items, formulas, inventions, data, designs and the work of artists. It is one of the most tradable properties in the technology market.