9/29/19 – Case 4

Part 1 

Step 1: Determine the facts in the situation – obtain all of the unbiased facts possible. Clearly state the ethical issue.

• Chetan owns a business and uses neem trees which are used for everything
• Neem industry provides employment for the poorest people
• Chetan has a seven generation history in this industry
• 60 people employed
• Neem – Chetan doesn’t know its formal name (Azadirchta indica), indigenous to India
• medicinal purposes, food production, toiletries, fuel, and pesticides
• Ten years ago, Tom Johnson, the Director of T (OOPS) travelled to India on vacation and discovered the neem seeds’ use as a potent pesticide
• Tom got a patent for the products

The ethical dilemma is: Is it okay for OOPS to charge people in India royaltees on the patent even though they have been using the technology for years prior.

Step 2 and 3: Define the Stakeholders – those with a vested interest in the outcome  and their motivations

• Chetan
  • Doesn’t want to pay the royaltees
  • Feels he owns the Neem products more than OOPS
  • Keep his tradition and culture alive
• People in india employed in Neem products
  • Want to keep their jobs and maintain a salary
• Tom Johnson (OOPS)
  • Make money
  • Tap into market in India
• Neem product customers
  • Want to keep sacred neem
  • Want to stay at the same cost or lower
• Chetan’s family
  • Want to keep in family to provide for them

What rights does Chetan have and is it ethical for the US company to uphold their patent rights?

Morally, it’s wrong to take the company out from under Chetan, but at the root there is no ethical issue with OOPS doing so.  Therefore, upholding the US patent is ethically fine to do.

Part 2 

Step 1: Determine the facts in the situation – obtain all of the unbiased facts possible. Clearly state the ethical issue.

• Chetan owns a business and uses neem trees which are used for everything
• Neem industry provides employment for the poorest people
• Chetan has a seven generation history in this industry
• 60 people employed
• Neem – Chetan doesn’t know its formal name (Azadirchta indica), indigenous to India
• medicinal purposes, food production, toiletries, fuel, and pesticides
• Ten years ago, Tom Johnson, the Director of Oregon Organic Pesticide Services (OOPS) travelled to India on vacation and discovered the neem seeds’ use as a potent pesticide
• Tom got a patent for the products

*Steps 2-3 same as Part 1*

Step 4: Formulate (at least three) alternative solutions – based on information available, to have a win-win situation for your relationship and your venture.

1. Push non-pesticide products
   1. Who saves face?
      1. Chetan and company by still upholding values and cultural image.
2. Collaborate with Tom’s OOPS company to get the original employees jobs there
   1. Who saves face?
      1. Chetan saves face because he is able to give his employees jobs but he might not be able to get a job and he will lose the business that he has worked so hard for.
3. Offer severance package to employees with money he already has and exit the business
   1. Who saves face?
      1. Chetan somewhat saves face because he gives them the money that they need to survive until they are able to find another job but the employees might still be mad about this and could still cause problems for him.
4. Sell company out entirely to OOPS, use the money to pay severances
   1. Who saves face?
      1. Chetan but same problems as both of the above things
5. Fight the patent

Best Solution:  Collaborate with Tom so that Chetan can sell out his company but the workers he had employed get to keep their jobs under OOPS in India, or they get a severance package if they need to leave the company.  Chetan general manager of those markets so that the employees have more trust rather than working under someone from OOPS.