ttools (B): The Value of a Patent to the Entrepreneur

A self-employed innovator developed and patented a novel combination pen and stylus device to complement the recently released Palm Pilot personal digital assistant. He presented his design to Palm under a Non-Disclosure Agreement to discuss the market response to the product, and ttools was allowed to advertise the device in a monthly email to Palm customers. Subsequent to ttools' release of the Throttle pen/stylus, Palm and the design firm IDEO introduced a similar pen/stylus device that appeared to infringe on ttools' patent. ttools, being a small, resource-constrained company, was in a precarious position. Its competitive advantage and rights as a patent holder were being threatened. It had few financial resources to draw upon, and thus, its livelihood as a company was at stake. The case investigates the options ttools had available to respond to Palm and IDEO's actions.