Reference no: EM133064290

Question - You own a small company that developed software for organizing and playing music on mobile devices and computers. Your software contains a number of features that you have patented and the future looks bright.

However, you have discovered something troubling.  It appears that a number of the patented features were copied in similar software developed by Music 4 All, a huge software company with annual sales in excess of $1 billion. You are distressed. Music 4 All has appeared to have stolen your ideas.  Worse yet, that company has the brand recognition and a marketing budget that far exceeds yours, which positions it to steal the market and possibly drive you out of business.

You decide to sue Music 4 All for patent infringement. With attorney's fees and other expenses, the cost of going to trial - win or lose - is expected to cost you $1 million.  You and your attorney feel you have 60% chance of winning the case, which would award your $5 million in damages.  If you lose the case, you get nothing.  In addition, if you lose the case, there is a 50% chance the judge would order you to pay for Music 4 All's court costs and attorney fees - an additional $1 million. Music 4 All has offered $1.5 million to settle out of court with you.

-Draw a decision tree for this problem.

-What does the decision tree tell you to do?

-Is this the right decision?  Why or why not?