Chapter14: Antitrust and Trade Regulation Ethics Issue Dell Corporation, a compu
ID: 425776 • Letter: C
Question
Chapter14: Antitrust and Trade Regulation Ethics Issue Dell Corporation, a computer manufacturer, was a member of VESA, a voluntary standard-setting association to which almost all members of the computer industry belonged. For several years, VESA sought to implement a process by which a certain platform would transfer video between a computer's CPU and its peripherals. Several times it asked its members if anyone had any patents which would prevent VESA from utilizing its discovery but no one replied that they had a patent on the process. VESA then announced its new platform and was immediately sued by Dell for patent infringement. It turns out that Dell had a patent on the process all along but did not reveal that to VESA. In an action by the FTC based on unfair practices, the FTC charged Dell with acting unfairly toward VESA in not revealing its patent. It alleged that Dell caused an industry delay and that uncertainty about acceptance raised the cost of implementation. Dell was required to relinquish its rights to enforce its patent against any computer manufacturer using the new design in its products and prohibited from engaging in comparable behavior in future standard-setting activities. What would have motivated Dell's management to lie to VESA, an organization of which it is a member? What benefit would be gained by putting its reputation as an upstanding organization at risk? If the organization makes a request to reveal, is there a duty to cooperate, to disclose intellectual property? If such a patent is legitimately missed by management, is it the duty of Dell to forgo the royalties' fee requirements that could be charged against users of the new product? 2012 McGraw-Hill Higher Education Any use is subject to the Terms ot Use and Privacy Notice.Explanation / Answer
1.The reasons for which Dell management had to lie to VESA could be as follows.
2.Monetary and licensing benefit what's the game for Dell by putting its reputation at risk
3. Yes, when an organisation makes a request to reveal their intellectual property and patents then it is their duty to corporate. Is it would help to avoid future conflict regarding patent rights and establish harmony in the industry.
4.Yes, If a patent is legitimately missed by the management it is the duty of Dell to forgo the royalty fees requirement that could be charged against users for the new product.