Here's your explanation...
I've explained it clearly before, and here it is AGAIN. Thank you for providing a platform from which I present my thoughts and provide supporting details, sighting real quotes from the CEO of MDT, and plausible, logically possible, outcomes.
Your point:
They have 13-15 patents. That's all they want. I understand what you've said. I don't believe any of it. I have not read 1 other email that supports this thesis.
Please tell us what MDT's going to do with 13-15 patents, and how they're going to compete against a completed ENOS, backed by another major medical device competitor? Martha has been quoted as saying he hates sharing markets, and revenue with competitors.
My point(s):
MDT has only 13-15 patents. You can't make a SP RAS device from those alone. They need to develop the transitional pieces from the main IP. The can't just slap them on HUGO either. The transitional pieces also require navigation through the USPTO gauntlet. If MDT would consider building a surgical device using TMDI IP, it will take at least another 4 years, probably 5, and another $350M, with no guarantee that the transition components will pass a patent review. You're not taking into consideration the obvious cost of time (another 4-5 years), IP risk, and the possibility of another competitor getting the entire company/machine/R&D lab.
The easiest way for MDT to solve ALL OF THESE HIGH RISK ISSUES is sitting right in front of everyone. One of the first rules of Business School is; If you have a problem, and you have the money to fix the problem, then you don't have a problem. Risk is the boogey man.
Just to let you in on a secret - Mergers and Acquisitions is a business segment in the real world. There are probably 4-5 really big medical device companies that would like a swing at TMDI.
Also, 20-30 years is a long time to be held out of a market segment. Ask Facetrain. So IP protection is paramount. Your other company is a little thin on that aspect of the business. No one cares about whomever may be throwing money at your other company. I say great, b/c MDT and TMDI will get most of it in patent infringement lawsuit(s). Or your other company will have to make a lot of changes.
If MDT licensed 13-15 early patents, then they know what other patents are available too. Voila! I haven't heard of any company trying to pick a fight with ISRG. You? I don't think anyone will be trying to pick a fight over IP with MDT either. But the MDT BoDs will be asking a lot of questions about why only 13-15 patents and letting a competitor buy TMDI/ENOS/TitanLivingLabs. Truly, that makes absolutely no sense.
Developing their own SP RAS device is "ABSURD." And I'm using that term correctly. The MDT BOD would have his head for going off and trying to reinvent what's already unique, and securely patented. And... Martha's entire career with MDT has been based on acquisitions.
ENOS is done.
TMDI doesn't care about HUGO, and I doubt ISRG does either. Do you think HUGO can be morphed into a NOTES device? Hardly. But ENOS has the basic elements to be adapted to one. It's physics, and the IP from which to adapt the design into specialized applications. Surely you can see the adaptation possibilities?
Also, MDT would benefit greatly from vicarious if they wander into the licensed IP. Worse, should MDT buy TMDI there are more than 200 obstacles through which any competitor will clearly be challenged.
Risk is the boogey man. TMDI/ENOS/TitanLivingLabs addresses MDT's risks.
These points are very real possibilities.
There's your explanation as to why MDT would buy TMDI.
IMO, the real question is; For how much? I've provided that answer in previous emails too.
Good luck to all. Regards,BK.
AI
