Case Study
Yilin Sun
Management of Technology
25 February 2015
1 What are the ways in which innovators can capture the value they create? First, the innovators should avoid publishing the innovations in an environment where new technology is difficult to protect. Second, the more fundamental the innovation, a broader patent will be granted, which will provide better protection. Third, design the innovation to have a good chance of benefiting innovators rather than their competitors. Forth, try to make the innovation to be accepted as the industry standard. Fifth, monitor their competitors, especially those own important complementary assets.
Case
1. Consider the challenges Tessera faced in commercializing its chip scale packaging technology. What alternatives did it have for monetizing these inventions? Were there alternative business models that might have been practical for it to pursue? Tessera can invest their own product lines to produce their inventions. This will protect the inventions from being taken by their licensees. In addition, those manufacturers who infringe will not pay the cheap back damage, but a high penalty based on how many products they produce. Tessera can also sale its innovation for a plenty amount of capital. This can make everything easy. Tessera will not be bother with the coming patent problem and additional customer services. However, Tessera will also lose the long-term return and may have less customer awareness. To invest their product lines will be a good alternative business model for Tessera. Because Tessera has both technic and enough capital, Tessera can do better than their licensees. Though new product lines cost a lot and Tessera is new to this business model, it has the strength to make a try. In addition, Tessera knows the inventions better; they can improve them fast and accurately.
2. How would a licensee view Tessera’s chip scale packaging technology over time, and what might be its motivations? A
Management of Technology
25 February 2015
1 What are the ways in which innovators can capture the value they create? First, the innovators should avoid publishing the innovations in an environment where new technology is difficult to protect. Second, the more fundamental the innovation, a broader patent will be granted, which will provide better protection. Third, design the innovation to have a good chance of benefiting innovators rather than their competitors. Forth, try to make the innovation to be accepted as the industry standard. Fifth, monitor their competitors, especially those own important complementary assets.
Case
1. Consider the challenges Tessera faced in commercializing its chip scale packaging technology. What alternatives did it have for monetizing these inventions? Were there alternative business models that might have been practical for it to pursue? Tessera can invest their own product lines to produce their inventions. This will protect the inventions from being taken by their licensees. In addition, those manufacturers who infringe will not pay the cheap back damage, but a high penalty based on how many products they produce. Tessera can also sale its innovation for a plenty amount of capital. This can make everything easy. Tessera will not be bother with the coming patent problem and additional customer services. However, Tessera will also lose the long-term return and may have less customer awareness. To invest their product lines will be a good alternative business model for Tessera. Because Tessera has both technic and enough capital, Tessera can do better than their licensees. Though new product lines cost a lot and Tessera is new to this business model, it has the strength to make a try. In addition, Tessera knows the inventions better; they can improve them fast and accurately.
2. How would a licensee view Tessera’s chip scale packaging technology over time, and what might be its motivations? A