Ttools case study
The goal of this analysis is to understand the opportunity and challenges ttools faces and advise them on the best approach to go forward. Ttools has created a unique all –in-one stylus for PDAs which also functions as regular ink pen. They have a successful utility patent and are facing a few challenges in patent infringement, marketing & distribution. Ttools has to decide whether they should compete, negotiate or litigate against Palm/IDEO for their product.
To choose the best option going forward, we will look at the each of the options in depth and analyse the potential impact on the outcome.
Competing against Palm
Currently ttools uses Palm’s distribution channels ...view middle of the document...
The biggest issue with this option is ttools would effectively give up the patent to the product. Once the product is launched, there would be a host to competitors with higher resources willing to replicate the product and sign a more competitive deal with Palm and put ttools out of the market.
Litigate the patent infringement
With $1,500 cash in the bank, litigation would not seem to be the best option but ttools could strike an equity sharing deal with the patent friend lawyer which would remove all litigation costs. The upside for this option would stop any other manufacturer from producing ttools’ product and would entitle them to a large damages. The downside is the case may draw out for a long time and drain all resources, may entirely loose the battle, since over 30% of the cases will be invalidated. With a success rate of 58% at the trial and overturning rate of 20%, it puts ttools’ chances of winning at less than 50%.
Having a successful utility patent in their armoury is tantamount to their success. Competing in market space where Palm holds over 70% market share and has sales over $5.5B, it is the...