Medi Corp is a corporation that deals in the manufacturing of medical devices. It has just...

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Psychology

Medi Corp is a corporation that deals in the manufacturing ofmedical devices. It has just received a patent from the U.S. Patentand Trademark Office for one of its surgical robotic knee devices.The patent is for the purpose of use in full knee replacementsurgeries, which was stated on the patent’s application. For partof the manufacturing process, Medi Corp uses Tech Co. to assemblethe computer components that run the robot. Tech Co. is a computercompany that manufactures a lot of the computer components forseveral medical device companies in the U.S.

Medi Corp has been considering making a bid to acquire Tech Co.If Medi Corp acquires Tech Co., the transaction would likely bearound $100 million dollars. Tech Co. is one of only threecompanies in the U.S. that manufactures and assembles thesecomputer components for medical devices, and is the biggest of thethree companies that offer these services, with the other twocompanies several million in revenue behind Tech Co. Moreover, MediCorp. is considered a leader in medical device manufacturing in theU.S. Both companies are publicly traded companies.

Tech Co.’s board of directors are willing to approve of a mergerwith Medi Corp. Rebecca is on the board of directors for Tech Co.She tells her husband that he should consider purchasing Medi Corpstock. Rebecca does not tell her husband any of the confidentialinformation of the potential merger with Medi Corp., but herhusband does know that she is on the board of directors at Tech Co.and that Medi Corp is a company Tech Co. does business with. Bob isan employee of Tech Co. He has been courted by Comp Inc., one ofthe competitors of Tech Co.

Bob has decided to leave Tech Co. for a senior placement at CompInc. At Tech Co., Bob works on the manufacturing of these computercomponents for Medi Corp. At Comp Inc., he will be in more of amanagement position, determining which companies Comp Inc. shouldbe doing business with, and managing those employees that are inthe manufacturing facilities.

Please answer the following questions:

4a) Do you see any potential antitrust issues with the merger ofMedi Corp and Tech Co.? Please fully explain this answer by usingthe appropriate U.S. statutes and any potential defenses that couldbe used.

4b) Do you see any potential legal issues with Rebecca and herhusband if her husband purchases stock in Medi Corp before MediCorp merges with Tech Co.? Please fully explain your answer forRebecca’s, and her husband’s, individual situations.

4c) If Medi Corp learns that Comp Inc. is releasing a roboticsurgical device for hip replacement surgery that has similartechnology to its surgical robotic knee devices, does it have anyrecourse against Comp Inc. for patent infringement? Please fullyexplain your answer as to what it must prove for this complaintagainst Comp Inc., and any defenses Comp Inc. has against thisclaim. Also explain if there could be any recourse against Bobdirectly if Bob had originally signed a confidentiality agreementwith Tech Co. when he worked for them.

Answer & Explanation Solved by verified expert
3.7 Ratings (504 Votes)
4a The Sherman antitrust law of 1890 proclaims that the mergers between two firms cannot be based on other trade but should be considered among themselves based on both the company policiesFederal and law states proclaim the laws between the two companies in a countryThe less important company would be taken over by the more powerful company in the form of shares The venturing of known employees in the firm is dangerous    See Answer
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