Macrotech inc develops an innovative computer chip and


Macrotech, Inc., develops an innovative computer chip and obtains a patent on it. The firm markets the chip under the trademarked brand name “Flash.” Macrotech wants to sell the chip to Nitron, Ltd., in Pacifica, a foreign country. Macrotech is concerned, however, that after an initial purchase, Nitron will dupli-cate the chip, pirate it, and sell the pirated version to com-puter manufacturers in Pacifica. To avoid this possibility, Macrotech could establish its own manufacturing facil-ity in Pacifica, but it does not want to do this. How can Macrotech, without establishing a manufacturing facility in Pacifica, protect against Flash’s being pirated by Nitron? (See Doing Business Internationally.)

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Operation Management: Macrotech inc develops an innovative computer chip and
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