Assignment:
Discussion
Meredith Delgado owns a small firm that has developed software for organizing and playing music on a computer. Her software contains a number of unique features that she has patented, so her company's future has looked bright.
However, there now has been an ominous development it appears that a number of her patented features were copied in similar software developed by music man software, a huge software company with annual sales revenue in excess of $1 billion. Meredith is distressed music man software has stolen her ideas and that company's marketing power is likely to enable it to capture the market and drive Meredith out of business.
In response Meredith, has sued music man software for patent with fees and other expenses, the cost of going to trial (win or lose) is expected to be $1 million. She feels that she has a 60 percent chance of winning the case, in which case she would receive $5 million in damages, if she loses the case she gets nothing Moreover if she loses the case, there is a 50 percent chance that the judge would also order Meredith to pay for court expenses and lawyer fees for music man (an additional $1 million cost) Musician Software has offered Meredith $ 1.5 million to settle this case out of court.
Source, Hillier, F and Hillier, M introduction to management science McGraw- 4th, ed, 2011.
Question:
1. What does Meredith need to decide?
2. What are some factors that complicate her decision?
3. What else would you like to know in order to help Meredith make her decision.
4. If you were Meredith, what would you do? Why.