To: Lizzie Tudor who wrote (180470 ) 3/29/2005 8:28:02 AM From: Amy J Respond to of 186894 Jury awards Lexar $464 million Jury adds to damage award in trade secret case against Toshiba. But Lexar’s attorney, Matthew Power, decried Toshiba’s actions as “malicious,” and claimed Toshiba planned to “sustain Lexar” only long enough to take its inventions.redherring.com Lizzie, am sure everyone in startup land is glee over this ruling. Too many large companies legally harass startups. It reminds me of several legal attacks by large companies on our trademarks, of course none had merit. Some seemingly have nothing better to do than attack startups. Our tm lawyer crafted probably the kindest letters you'd ever see from a lawyer - it's classy to be nice and cooperative even when we had the upper hand. And it's effective, one guy even got a bit embarrassed by his own style and gave a super nice apology to me by phone when we reacted with consistent politeness and facts. But the style of one super large overseas company was so annoying (they asked for settlement money, what nerve), that when we entered the legal period of negotiation (forgot what this is called overseas) I didn't speak to them at all. Ignored all their attempts to talk. The time to talk is *before* demanding settlement money, not after. It's rude when a company asks for money before even discussing win-win solutions - the corporate lawyer's style got me angry. Anyway, they rightly guessed I was super annoyed by their attacking style and would have given the TM that threatened them to their nastiest competitor - not something I would do to a nice company. They backed down and lost any legal right to make a claim against the tm. Who says emotions are such a bad thing in business? Sometimes it can be all you have to fight some of the large ones that can be nasty. But back to the Toshiba story, they made the mistake of (sarcasm on) stealing the IP before the company went under. The legal way of getting IP on the cheap, is to get a startup dependent upon your capital funding. Give them carrots of hope with suggestive hints of an acquisition but never make a promise, tell them you'll increase the capital funding if they focus more on your company, then after they are 90% dependent upon you, pull the plug on the capital investment. Bingo, you get the IP cheap. There's this one large military company that actually does this to startups, according to a contact of mine that started a company and attended some of the board meetings where this company made some of their so-called promises. Of course, this has a way of getting back at companies and they tend to get locked out of good deals in the future because their reputation gets out there. Good firms don't play such tactics. Nonetheless, it's super foolish to get dependent upon any company, even a good company. Regards, Amy J