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Non-Tech : Amati investors
AMTX 1.550+4.0%Dec 11 3:59 PM EST
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To: Eric Goethals who wrote (17528)5/13/1997 8:14:00 PM
From: Cliff Wood   of 31386
 
Re. Intntl Patents:

Not a patent lawyer but had consid. experience dealing with them.

Basically a firm must file in every country where it wants protection. Exception is the European Union where it is now poss. to file one app. to cover the EU.

The prob. is that many nations do not support the protection of intellectual property. This is not so much a prob. in the less dev. nations because, sadly, they don't represent much biz.

However the big potentials such as China, India, and Japan create a real "delenema". Japan gives lip service but the system withing the country is corrupt if one of the litigants is foreign.

Basically, staying ahead in technology development and trade secrets are better offense and defense. Patents are an effective impediment that make it more difficult for the imitator to get a toe hold. If a firm has the ability to change the competitive set quickly enough so that wannabees can't achieve economies of scale and scope at any given point in time they can stay in a position where they are always looking down the barrel of the gun at the comp. Nice pos. to be in.
Intel is an obvious example of a firm that has implemented such a strategy to perfection. They have used patents to slow the comp. down and, when the comp. gets around the patent, they change the comp. environment with a new release. Lower the price on the old technology so that the upstart has trouble making profit, financing research and capital investment. And, if they make one big mistake, they are toast.

Hope this helps.

Regards:
Cliff
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