Consider a client that has been making a material called UHWDPE (Ultra-high-molecular-weight polyethylene) for hip replacements....

Transcribed Image Text:

Consider a client that has been making a material called UHWDPE (Ultra-high-molecular-weight polyethylene) for hip replacements. They already have an exclusive license to a university patent on the process they use to make it, and the process is cheaper than competitors' processes. Because the process was outlined in a scientific publication by the university researcher who came up with it, it is public knowledge how the process works. Would you expect your client to be making more money than competitors, the same, or less (all else equal). Suppose a lot of different companies are making UWHDPE textiles to sell to outdoor equipment manufacturers to make jackets for the outdoor market. They each have a different patent on a different way of making the fabric. While the processes are different, they all result in making the product at roughly the same cost, and the end product is comparable enough that the jacket makers don't really care which process was used. Your client, the medical device maker from the previous question, is considering entering the outdoor textile market. Would you recommend that they do it? If yes, why? If not, why not? Consider a client that has been making a material called UHWDPE (Ultra-high-molecular-weight polyethylene) for hip replacements. They already have an exclusive license to a university patent on the process they use to make it, and the process is cheaper than competitors' processes. Because the process was outlined in a scientific publication by the university researcher who came up with it, it is public knowledge how the process works. Would you expect your client to be making more money than competitors, the same, or less (all else equal). Suppose a lot of different companies are making UWHDPE textiles to sell to outdoor equipment manufacturers to make jackets for the outdoor market. They each have a different patent on a different way of making the fabric. While the processes are different, they all result in making the product at roughly the same cost, and the end product is comparable enough that the jacket makers don't really care which process was used. Your client, the medical device maker from the previous question, is considering entering the outdoor textile market. Would you recommend that they do it? If yes, why? If not, why not?