Strategy of Using Foreign Investors and Liscensees
The Strategy of using Foreign Investors and Licensees: a Philippine Perspective
• In a certain objectives, use foreign companies
• Cooperation with a foreign company can provide a shortcut-attainment of certain goals at a lower cost and in much less time
Certain risk or potential problem in cooperation with a foreign firm
1. Government’s approval be obtained
2. Satisfaction of the goals of the foreign company
• The Philippine firm must examine the alternative strategies and choose what is the optimum from its point of view
Evaluation of Foreign Investing
In Philippine setting
Pre-Independence days Post-independence days At Present
--There are a --foreign firmexport -- Foreign Firms number of joint ventures its products through considered or managing agencies alocal agent Manufacturing its products in the Phils. through partnership with a former importing agent
Company Goals o Benefits a Philippine company could get 1. Philippine company may want access to the patent rights or manufacturing rights for a certain type of product a. A product might be manufactured in a number of different countries by several firms each having its own patents. b. Easiest arrangement concerned isthrough cash purchase of the rights to manufacture c. Certain brand of a foreign product is selling very well in the local market-trademark • An arrangement must be reached with specific foreign company owner o They will not want their trademark used unless it has assurance that their quality standards can be maintained o They will insist more on a liscense agreement or equity participation with accompanying rights to inspect, as well as concurrent royalty payments • Patent- • Trademark- 2. Philippinecompany may wish to start manufacturing a new product where
• In a certain objectives, use foreign companies
• Cooperation with a foreign company can provide a shortcut-attainment of certain goals at a lower cost and in much less time
Certain risk or potential problem in cooperation with a foreign firm
1. Government’s approval be obtained
2. Satisfaction of the goals of the foreign company
• The Philippine firm must examine the alternative strategies and choose what is the optimum from its point of view
Evaluation of Foreign Investing
In Philippine setting
Pre-Independence days Post-independence days At Present
--There are a --foreign firmexport -- Foreign Firms number of joint ventures its products through considered or managing agencies alocal agent Manufacturing its products in the Phils. through partnership with a former importing agent
Company Goals o Benefits a Philippine company could get 1. Philippine company may want access to the patent rights or manufacturing rights for a certain type of product a. A product might be manufactured in a number of different countries by several firms each having its own patents. b. Easiest arrangement concerned isthrough cash purchase of the rights to manufacture c. Certain brand of a foreign product is selling very well in the local market-trademark • An arrangement must be reached with specific foreign company owner o They will not want their trademark used unless it has assurance that their quality standards can be maintained o They will insist more on a liscense agreement or equity participation with accompanying rights to inspect, as well as concurrent royalty payments • Patent- • Trademark- 2. Philippinecompany may wish to start manufacturing a new product where