Lol, well said. And thank you @Bogeyman for the info. Something I wondered about, but had no idea how to find the answer!Thanks, @Bogeyman, good read and some pertinent history. Also gives a new twist on the old adage...if you can't beat 'em, then join 'em. But in this case, it's...if you can't beat 'em, then buy 'em.
The money quote from the article when asked why Gillette would pay $20M for a $9M company..."But, gentlemen, I have a patent on your product!"Lol, well said. And thank you @Bogeyman for the info. Something I wondered about, but had no idea how to find the answer!
Interesting story, but skips right over the industrial espionage part - which is that Gaisman gained inside information about Gillette's forthcoming patent application and beat Gillette to the patent office with a copy-cat design, thereby being able to claim (though fraudulently), that Gillette was infringing on Gaisman's design, when in reality, it was the other way round.Double Edge Blades
www.shaveworld.org
wow thats very interesting thx for postingInteresting story, but skips right over the industrial espionage part - which is that Gaisman gained inside information about Gillette's forthcoming patent application and beat Gillette to the patent office with a copy-cat design, thereby being able to claim (though fraudulently), that Gillette was infringing on Gaisman's design, when in reality, it was the other way round.
Unfortunately, Gillette had failed to adequately protect their trade secret prior to filing for patent protection, and would not be heard to complain in court that it had been stolen from them. Thus, it appeared they would be found liable and have to pay Gaisman untold damages for infringement, since their design had already been released and sold to the public, causing loss to Gaisman and continuing loss into the future.
Thus, a settlement agreement was reached.
It's true that the settlement amount far exceeded the value of Gaisman's company, but it was an amount chosen and demanded by Gaisman to give him control of Gillette.
It was a high-stakes gambit that paid off.
In reality, an audacious power-grab by Gaisman. He was paid in Gillette stock, sufficient to give him majority voting power within the company.
That's how he came to be chairman of Gillette after the settlement.
A mere buy-out would not have conferred that to him.
Essentially, he seized Gillette in what we would describe to-day as a hostile take-over.