Publications
Publications
- September 2002 (Revised May 2003)
- HBS Case Collection
X-IT and Kidde (A)
By: Constance E. Bagley and David Lane
Abstract
Involves a start-up, X-IT Products LLC, whose founders had designed an innovative, lightweight, and easy-to-use--yet strong--escape ladder. After X-IT had filed a patent application for the ladder in the United States, X-IT was approached by Kidde PLC, one of the largest vendors of fire protection products in the world. Negotiations to license X-IT's invention or to buy X-IT ensued. The parties entered into a confidentiality agreement, which gave Kidde's patent counsel access to X-IT's confidential patent application for the narrow purpose of reporting to Kidde whether the patent claims were weak or strong. After the X-IT founders saw Kidde representatives displaying a ladder at a major trade show that was almost identical to X-IT's ladder, X-IT's CEO had to decide what to do next. Although suing Kidde for violating the confidentiality agreement was an option, X-IT barely had sufficient cash to fill orders, not to mention pay attorney fees.
Keywords
Patents; Negotiation Process; Agreements and Arrangements; Ethics; Lawsuits and Litigation; Business Startups; Consumer Products Industry
Citation
Bagley, Constance E., and David Lane. "X-IT and Kidde (A)." Harvard Business School Case 803-041, September 2002. (Revised May 2003.)