Just as many generals proclaim that battles are won or lost before they are fought, smart negotiators recognize that they should avoid fair fights at the negotiating table. Instead, they should pile up the cards in their favor before reaching the negotiating table. Consider the negotiations that followed when Donald Trump identified the location of the trump tower construction. The owner of the property was Leonard Kandell. Kandell was also an experienced real estate tycoon who preferred to retain ownership of the land and rent it out for the long term. Trump preferred to praise the country rather than own it directly. One would think that a deal between Trump and Kandell could be reached relatively easily, as there was a vote of interest. Trump knew, however, that negotiations without negotiations with Kandell would not lead to the most optimal results. Before starting negotiations with Kandell, Trump negotiated the purchase of air rights from Tiffany & Co. During these negotiations, Trump realized that Tiffany had an option to acquire Kandell`s property at fair market value.
Trump arranged for this option to be included in the air rights agreement. As a result, Trump had a stick in the form of an option to acquire Kandell`s property if no favorable leasing terms could be negotiated. Patent (United States) (close) A grant by the federal government of the right to an inventor to exclude others from the production, use, or sale of his invention. In the United States, there are three types of patents: a standard utility model on functional aspects of products and processes; a design patent on the ornamental design of useful objects; and a plant patent on a new variety of living plant. Patents do not protect ideas, but only structures and methods that use technological concepts. Any type of patent confers the right to exclude others from a well-defined scope of technology, industrial design or plant variety. In return for the right of exclusion, an inventor must fully disclose the details of the invention to the public so that others can understand it and use it to develop the technology. Upon expiry of the patent, the public has the right to make and use the invention and is entitled to full and complete disclosure of the procedure. Some concrete examples of how to create value outside the bargaining table come from Fred Smith, the founder of Federal Express. Many years ago, Smith wanted to acquire Flying Tigers, a struggling Asian airline that had many more assets than the successful Federal Express.
Before negotiations began, Fred Smith had his lackeys talk about his unwavering determination to blame his workers` union. He despises unions as a scourge on airlines and has announced that he never wants to acquire a unionized company.