On May 30, 8:08 pm, "william...@[EMAIL PROTECTED]
" <william...@[EMAIL PROTECTED]
> wrote:
> In writing a business plan, how im****tant is the information
> that the patent on a component, material or process, that is
> used as an input to your product, is expiring very soon?
Depends on how im****tant the component itself is... I wouldn't
worry about it if the cost of the component to you were 0.2% of
the total cost of your product.
> Even though you are not paying royalties directly, the
> manufacturers of that component probably are, and there is
> a possible decrease in costs for that component once that
> patent expires?
The key word is "possible". What sort of margin does the
component's manufacturer have? And what are start-up costs
to produce the component? The lower the margins are and the
higher the cost of entry, the greater the chance that
expiration of the patent will have no impact on prices.
Cheers,
NC
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