Reference no: EM131260132

1. For each of the five types of power, list a specific job listing found on the Web that would benefit from its use.

2. Consider managers (supervisors) that you have worked for in the past. What type of power did they have? Was it effective?

3. If you could be strong in one power category, which type would it be? Does this depend on the organization you work for? Why or why not?

Real Case: Fighting Back

One of the areas in which organizations are finding power to be an extremely important consideration in today's knowledge management is the protection of intellectual property, specifically patent protection. When a firm secures a patent, it gains knowledge power over the marketplace. However, if this patent cannot be defended against violators, it has little value. A good example of a patent protection battle is that of Fusion Systems, a small, high-tech American firm, and Mitsubishi, the giant Japanese conglomerate.

Several years ago, Fusion developed a core technology that allowed it to manufacture high-intensity ultraviolet lamps powered by 500 to 6,000 watts of microwave energy. The company obtained patents in the United States, Europe, and Japan. One of its first big orders came from the Adolph Coors Company for lamp systems to dry the printed decoration on beer cans. Other customers included Hitachi, IBM, 3M, Motorola, Sumitomo, Toshiba, NEC, and Mitsubishi. The last purchased Fusion's lamp system and immediately sent it to the research and development lab to be reverse engineered. Once Mitsubishi had stripped down the product, it began filing patent applications that copied and surrounded Fusion's high-intensity microwave lamp technology. Fusion was unaware of what was going on until it began investigating and found that Mitsubishi had filed nearly 300 patent applications directly related to its own lamp technology. When Fusion tried to settle the matter through direct negotiations, the firm was unsuccessful. In addition, Mitsubishi hired the Stanford Research Institute to study the matter and the Institute concluded that the Japanese company's position was solid. However, the chairman of the applied physics department at Columbia University, who was hired by Fusion, disagreed and-after reviewing the patent materials from both companies-concluded that Mitsubishi had relied heavily on technology developed at Fusion and that Mitsubishi's lamp represented no significant additional breakthrough.

Mitsubishi then offered Fusion a deal: Mitsubishi would not sue Fusion for patent infringement if Fusion would pay Mitsubishi a royalty for the privilege of using "its" patents in Japan. Mitsubishi would then get a royalty-free, worldwide cross-license of all of Fusion's technology. Fusion responded by going to the Office of the U.S. Trade Representative and getting help. The company also found a sympathetic ear from the Senate Finance Committee and the House Republican Task Force on Technology Transfer, as well as from the secretary of commerce and the American ambassador to Japan. As the dispute was dragged through the courts, Mitsubishi began to give ground in the face of political pressure. At the same time, Fusion continued to develop innovations in its core field of expertise and remains the leader in both Japanese and worldwide markets. The company believes that as long as it maintains the exclusive rights to this technology, competitors will not be able to erode its market power.