The agreement should clearly specify that Avocado will finance or invest in his product in terms of marketing/sales and distribution and Sigmund on the other hand will share the technical details such as know-how of his product. B. Profit Sharing Agreement- Sigmund should also sign a profit sharing agreement with Avocado. The profit should not necessarily be 50-50 between both the parties but Sigmund should tallest get 25 to 30 percent of profit for an infinite period of time. C.
Non-Disclosure Agreement- Finally Sigmund should make a pre-contract such as Non-Disclosure agreement that should restrict Avocado from disclosing technical details and know-how to any third party without the consent of Sigmund. Sigmund should make all these contracts under the advice of a registered advocate or a corporate lawyer. The advocate or the lawyer should be practicing in the U. S. So that he/she can help Sigmund in case of any legal dispute or discrepancies between him and Avocado. Q. Anus- Sigmund should set up his business in France through Joint venture with an IT French company. As Sigmund is inexperienced with law and Big Sigmund is just a small start-up company, he needs further support in both financial and legal aspects. Joint venture could enable the company to share the risks and costs with partner, access to greater resources, market share and distribution channels. In particular, Sigmund should seek for a separate mint venture to gain flexibility with a reliable company.
The local company should be well-performed and have a positive attitude for collaboration. As our main strategies are support for foreign law and regulations and market capture, the local company should be grown-up and long-standing such as Iodides S. A.. Q Anus- Some of the crucial things that we need to consider while making an agreement with a contract manufacturer in China are:- A. Protection Of Intellectual Property- Before making a business deal with VISION, Sigmund should register his own product patents, trademarks or copyrights.
Such restrictions can prevent a competitor from registering the same Intellectual Property in China. Sigmund should clearly specify in his contract that VISION will not manufacture similar products with other competing companies and will not share any know-how and trade secrets. B. Setting up a Dispute Resolution Joint committee- Disputes are a common scene in International Business. So both the sides/companies should set up a joint dispute resolution committee and should agree to solve disputes mutually and in an unbiased manner.
Both the companies/sides should register their companies under International Chamber Of Commerce or any such well recognized International Trade Associations. Q. 4 Anus- Sigmund, according to what we learned in class, must register a patent about his invention, in order to protect it from the market and from Avocado (who we know has been developing a similar product in-house and we know it’s only trying to buy time to postpone Sigmund product and learn from him how to complete their own product by getting technical know-how/ information). The patent will allow Sigmund to protect his invention.
The patent will give him the total right of exploitation for 20 years from the application and a certificate of use for 6 years. This time, considering how much is “revolutionary/’ the invention and close the competitor (Avocado Inc. ) will protect him and give a competitive advantage to create and a wide gap in the market among Sigmund Product and others(especially against Avocado Inc. , our first potential competitor and a partner), with the time to think to others things to improve our product in the future or extend to other brand new.
Furthermore, we also suggest to apply for the E patent convention, in order to protect the product in rest of Europe (the convention is recognized in 38 Member States plus other ten). Q. Anus- Sigmund should consider the following points while discussion with the bank 1. Long term loan- for larger expenses or for fixed assets that Sigmund expects to use for more than a year such as property, buildings, vehicles etc. 2. Cash flow- ability to repay the cash Sigmund is borrowing. This is measured by the cash flow forecast for the business plan. 3. Collateral- the value of the assets that Sigmund is willing to pledge for assurance.
Q. 6 Anus- While having a meeting with Intel, Sigmund should sign a contract of “Non- Disclosure of Technology’ agreement because when Intel will make the imputer chips for Sigmund product, they will be requiring to know about the product. So Intel should too give in writing that they will not disclose any details of Sigmund product with any other individual/company. Secondly, in our opinion, Sigmund should also discuss about the price that they would charge for the chips. He should also discuss about the product guarantee and any other benefits such as insurance, etc.
Sigmund after having a meeting with Intel should also meet MAD for a discussion about the price they would charge and other related benefits and details they would offer. Based on details from both the companies, Sigmund should make a final call. Q. 7 Anus- Sigmund definitely needs to concern with the potential adoption Of the General Data Protection Regulation (GAP). Because Big Sigmund product would deeply involve in the daily life of each family using it, it will not only store the customers personal data but also compressed video related to their activities.
Furthermore, the invention strongly connects to all home Internet devices and even serves as a firewall, this means it could even memorize the customers IP address, email address, bank details, posts on social networking websites etc. In order to obey the rules of EX. regulation and to avoid any legal suit related to unexpected privacy problem, Sigmund has to adapt to the GAP, setting a strict privacy system, particularly in Consent, Data breaches and Data portability. This contributes to the business value and shows the respect and value to customers.
Various actions he should take into consideration include: 1 . Guarantee the Consent for children under 13 must be given by child’s parent or custodian, and should be verifiable. No abuse or advertisement using children images or information without permission 2. Strengthen the injection between Data protection officer and the Supervisory authority to make sure that there is no delay in reporting data breach. 3. Listen to customers and provide them with clear and understandable instructions and privacy education. 4. Ensure a quick and 24/7 available response system 5.
Trustful and limited share of information to the third-party (need further investigation) Q. 8 Anus- (a)Sigmund According to Bird’s approach, Sigmund strategy can be said to be of Compliance, as he knew he eventually had to get protection for his invention,but he thought of not focusing on the legal aspect right now as he ad no time. According to Seaside’s approach,Sigmund was ‘Coping with the Legal Concerns’. As he had no time in getting to the legal aspect of his invention, he was an enthusiastic and optimistic person who must have thought that as the negotiations would go on, he would definitely cope with the legal aspect. B)Wonkiest and Sandhogs According to Bird’s approach we would place Winsomeness’s and Sandstone’s strategy to be ‘Advantage’. This is so because Avocado,Len were already developing a similar product to that of Sigmund , and as mentioned in the case , Avocado was not finalized yet, and it was in their interest to buy mom time so that they can make appropriate changes to their contract with Sigmund so that they could take advantage of the legal aspect of the negotiation as well as have more information on technology which they could use on their own product.
According to Seaside’s approach, Avocado,Len is at the third stage which is Developing Strategies and Solutions to prevent future Legal problems. This is so because of Avocado developing a similar product which in future,would compete with Sigmund. All this may lead to future legal problems, which Avocado had knowledge Of, and had called Sigmund for discussion on future contract.