2014年2月8日星期六

Partial integration

I am coming back.Lots of works recently...

Today, I would like to talk about one and only one thing, partial integration.
What I observed in the past several month was special intellectual property right sharing  between big companies. In current market, the company are too big to be merged in many industries because the target company is either expensive or hard to assess the future value. On the other hand, there are more and more cooperation among different industries making the specialized companies try to find other ways to develop their projects.
All this facts indicate a requirement that the company should keep the specialization when they develop business across the industries.
How?
For now, I found two methods. One is cross-licensing and the other is joint stock across the industries.

There are lots of lawsuits about the intellectual property right among the internet companies in the past several years. No disrespect for intellectual property, I think it was waste of too much money for both companies and society.
In order to delineate the intellectual property right and threaten the potential tort of intellectual property right, the companies and court have to put lots of time, money and energy into the dispute, which may lead even a higher cost, exceeding the benefit in total. It is actually irrational for both parties from the game theory.
Hence, many companies are seeking a way to conditional sharing their intellectual property right to each other, which is actually can be regarded as an intellectual property pool among several parties. The party who takes part in the contract can benefit from using intellectual property right freely. It is a brilliant way to save the legal cost for all companies who may get involved into property right lawsuit.
Another method is joint stock. It is actually an interest-sharing to overcome the potential competition in the some field. Through the joint stock, two parties can develop a mutual benefit plan in different niche market or even different industry. In current market, I think we should turn to pay more attention on the competition cost rather than monopoly issues.