Carrot or stick? Getting paid for innovation at Tessera Technologies Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Carrot or stick? Getting paid for innovation at Tessera Technologies Case Solution

Factor Relates to the Main Problem

The factor that related to the main problem that MercExchange case against eBay was failed because the court explicitly said that it would not halt the expansion of commercial electronic transactions. It was even more unexpected as the court's argument that MercExchange had no intent of exploiting their invention because they were prepared to license.The factor that was also related to the problem is the commercialization of fanless cooling system, as after its innovations when the company introduced the product in the market it realized that they were entered in a new market place where this innovation was totally new to the consumer.

Alternatives

Basically there are the three alternative solutions the first one is the use of Carrot Licensing, as the main problem addresses the licensing model issue that need to be solved. The carrot licensing strategy is appropriate if prospective licensor is not using the patented innovation and is not required to get a license. In this type of licensing, the patent holder uses marketing techniques to show the licensee what may be accomplished by purchasing a license for their innovation. Secondly, Stick licensing is applied in those cases where the potential licensee is already using your intellectual properties, violating your patent or innovation. Thirdly, using the situational based licensing model which means if the company was using the licensing technology already either it knowing it or not so it will be goes for stick licensing but if any small group of company made an invention but not marketed by themselves and given their product and convincing other to taken the license for promoting their product in the market to gain the maximum profit then in this case carrot licensing will be preferred.

Evaluation of Alternatives

The criteria to choose the best solution out of the solutions provided above must depend over the amount of benefits and level of convenience that it would generate for its stakeholders. As mentioned earlier, it is already determined that how the issues related to the disputed decision of the company for suitable licensing model could impact the company’s stakeholders. Hence it is important to make sure that the recommended solution must be in alignment with the benefits of the company’s stakeholders.

Recommendation

Based on the criteria it could be recommended to the company that the company should opt for situational based licensing model. If the company choose to go for this model the company would be able to give margin to utilize both the licensing models based on the situation, i.e. either the carrot licensing or the stick licensing. For instance if the company get to know about some company that already uses its innovation knowingly or unknowingly, the company could use the Stick licensing model so that the other company could go through a proper process that would help them to get the license from the company. Few to the times the market may not be aware about the company’s innovation so in that case the company would have to do market research on the good that their product could do to the market and look for various companies that can provide its product to the market so in that case the company could go for the stick based licensing. Hence the feasible recommended alternative for the company would be the situational based licensing model.

Implementation Plan

For short-term the company could do market surveys to determine which companies could utilize their innovation to proper in their respective industry. Then the company could use the gathered data to commercialize its innovation by creating awareness about its product. For medium term the company could look for various ways that could help it to improve its innovations only for the betterment of the market. The company could also see for feasible marketing strategies that help its gain popularity in the market. For long term the company should invest in R&D only to make its technology best in the market. The company should also keep a check and balance in the market to be aware of any company using its innovation without license knowingly or unknowingly or to check if any good the product could bring to the market.

Pitfall Relates to the Recommendation

The pitfall that related to the recommendations are using the stick licensing for launching their innovation technology which probably takes more time or may be years to give revenue after its invention. This whole process can be time-consuming, costly as well as the company also loses its position in the marketplace for reinventing the product themselves.......................

Appendices

Appendix 1-Swot framework

Appendix 2- Recommendations

Appendix 3- Pitfalls

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Carrot or stick? Getting paid for innovation at Tessera Technologies Harvard Case Solution & Analysis