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    Himont Assignment

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    ruchi singla
    Himont chose to license out its cutting edge technology for several reasons: 1) To prevent other companies from competing in the technology and reduce its own R&D investments and costs. 2) Licensing allowed it to capture a global market and additional value from its R&D investments through licensing fees and royalties. 3) Total earnings from licensing were higher than if it had kept the technology proprietary, as licensing fees and indirect earnings were significant.

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    Himont Assignment

    Uploaded by

    ruchi singla
    150 views4 pages
    Himont chose to license out its cutting edge technology for several reasons: 1) To prevent other companies from competing in the technology and reduce its own R&D investments and costs. 2) Licensing allowed it to capture a global market and additional value from its R&D investments through licensing fees and royalties. 3) Total earnings from licensing were higher than if it had kept the technology proprietary, as licensing fees and indirect earnings were significant.

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    Himont chose to license out its cutting edge technology for several reasons: 1) To prevent other companies from competing in the technology and reduce its own R&D investments and costs. 2) Licensing allowed it to capture a global market and additional value from its R&D investments through licensing fees and royalties. 3) Total earnings from licensing were higher than if it had kept the technology proprietary, as licensing fees and indirect earnings were significant.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    150 views4 pages

    Himont Assignment

    Uploaded by

    ruchi singla
    Himont chose to license out its cutting edge technology for several reasons: 1) To prevent other companies from competing in the technology and reduce its own R&D investments and costs. 2) Licensing allowed it to capture a global market and additional value from its R&D investments through licensing fees and royalties. 3) Total earnings from licensing were higher than if it had kept the technology proprietary, as licensing fees and indirect earnings were significant.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 4

    Why do you think Himont chose to license out its cutting edge

    technology and thus gave away a strong proprietary resource?


    Lack of downstream complementary assets in production
    Preventing other companies from competing in
    Attempt to reduce R&D investments and technology development costs
    Way of Increasing returns
    Capturing Global market
    Capturing additional value from R & D Investments
    Most Licensees chose Himont for catalyst supply whose price to quantity ratio is
    much high
    Total earnings from a technology license were relevantly higher than licensing
    fees and royalties if indirect earnings are included
    Attempt to create technology standards in market of plastics
    Can you identify and explain the reasons for the moves that Himont
    had to make to realize its aim of licensing out the technology?
    Himont created an internal group composed of 15 people with the purpose of
    completing the different steps of transactions during licensing agreement. Not
    much time and resources were spent in marketing because the technology has
    best features compared to other alternative technologies, so demand of licenses
    exceeded supply capabilities.
    The detailed(protected) information about the technology was not shared. This
    was done to prevent an opportunistic use of disclosed technological know how.
    The licensing contracts included down payment and running royalties. The
    proportion between two elements was as per the country’s preference thereby
    giving the flexibility to the global customers and capturing global market.
    Can you identify and explain the reasons for the moves that Himont
    had to make to realize its aim of licensing out the technology?
    Specific milestones of payments were the contracts sign, first and second
    technology package disclosure and final step was completion of plant
    design. Giving the flexibility to the customers in choosing any engineering
    company to build a plant gave time to Himont to build trust among the
    customers and thereby, in most cases, licensees preferred to use
    engineering firm related to Montedison
    Inclusion of reciprocal continuous know how- both the licensor and the
    licensee had to provide further technological development to each other.
    So, licensing agreements never included the risk of creating new
    technological competitors.
    Thank you

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