Is Company Structure Adequate Intellectual Property Protection for a Small Tech Firm?
Wallace Scott and Ian Ashdown co-founded SunTracker Technologies Ltd. (STL)in 2011. Scott and Ashdown co-created a growing portfolio of lighting design patents through research and development. Overtime, Scott became concerned about liability since the value of STL stock was tied to these patents. In 2021, they co-founded a dual-company structure to grow, promote, and protect STL’s assets. The purpose of this subsidiary, HelioSol Software Solutions Inc., (HSSI) was marketing and licensing products held by STL. They hired Shirley Lang, who had marketing and entrepreneurship experience, as Chief Executive Officer for HSSI and Chief Administrative Officer of STL so they focused on research and development for asset development. By December 2024, would stakeholders agree this two-company structure was enough asset protection? Students are asked to discuss the merits of IP protection methods and decide whether a two-company structure is the best approach to protect STL IP assets.
While this multi-faceted scenario involves several themes, it focuses on the IP protection
methodology. The list of themes for the CI was narrowed at the request of reviewers to address
IP, organizational structure and strategic management. After studying this CI, students will
become familiar with highly specialized technology companies and will be able to:
1. Discuss the effectiveness of various intellectual property protection methods for potential revenue growth.
2. Analyze the effectiveness of organizational structure to protect the patent IP.
3. Explain different types of market risks using a framework associated with protecting patent IP.
4. Determine the most appropriate financial model for mitigating the IP risk in patent protection situations.