Powerscreen

Guillermo A.
Sánchez
gsprieto@upcomillas.es
Preparation Guide for Negotiation
1) On what is each party interested in order to get a good relationship? (What will
get each party if both reach an agreement and what do they lost if they fail)
a. Hacker wants to agree on a package deal, so Gates will invest and he will
have capital to continue developing products
b. Hacker wants to agree on what to do if the Gates’ group decides they are not
interested in anything other than the royalty deal on PowerScreen
c. Hacker would rather give 10-15% royalties of PowerScreen to HackerStar
rather than see the company dissolve or have to go to court
d. Star wants the royalties from PowerScreen split 50/50 between Hacker and
Star (ideal agreement)
e. Star will take Hacker to court if they cannot reach an agreement during
negotiation
2) What can obtain both parties with a long-term relationship?

Star wants returns on investments and Hacker wants the recognition for developing
the program. If they propose a deal for the both of them, they will make returns on
their investments, and Hacker will have the capital to continue with research and
development, along with an allowance for advertising. This will maximize profits in
the long-term.
3) Matters to be treated or “things” to discuss at the meeting, requests.

a) Defining “spare time” as used in the contract
b) Hacker wants company support to develop new products
c) Hacker wants a larger allowance for advertising
d) Star wants equal share in PowerScreen, regardless that he denied the initial idea
e) Star wants to make his initial investment back and a profit
f) Both parties would like respect from one another given the time and energy they
have dedicated to the company
g) Hacker wants his deserved recognition (more important to him than profit)
h) Decide whether or not Hacker’s actions violated terms of the contract (competition,
use of company equipment and time)
PREPARATION FORM
1. Brainstorming about interests (write down all you can think of)
a. Recognition (I)
b. Return on investment (I)
c. Respect (I)
d. Freedom to develop/sell product (I)
e. Avoid litigation (I)
1
® Copyright Guillermo A. Sánchez Prieto
ga.sanchez@guillermoasanchez.com
Guillermo A. Sánchez
f. Keep company going (I)
g. Don’t want to get ripped off/ feel taken advantage of (I)
h. Advertising rights in order to sell product (P)
i. Want other investors (Gates) (I)
j. Prefer 10-15% of royalties rather than company fall apart (P)
k. Loyalty to each other and to terms of the contract (I)
l. Get what you want out of the company (I) by keeping finance and
development positions separate/roles in the company (P)
2. Interests ranking. Eliminate those that are duplicated.

1) Keep company going
2) Get what you want out of company
a. Keep finance and development positions separate
3) Loyalty to each other and terms of contract
4) Avoid getting ripped off or feeling taken advantage of
5) Avoid litigation
6) Returns on investment
7) Recognition
8) Get other investors
a. Gates
3. Put all the interests in order according to how vital or important they are to you.
a. Recognition
b. Research and development freedom
c. Avoid feeling taken advantage of/ripped off
d. Increased advertising allowance
e. Avoid litigation
f. Sell product
g. Get other investors
h. Returns
4. BATNAS (Brainstorming). Sort according to your interest’s preference.

Have Gates invest in the PowerScreen, and split royalties 50/50 between Hacker and
Star from the PowerScreen profit.
5. Matters to be discussed (positions). (The shopping list).

a) Advertising rights
b) Keep finance and development roles separate
c) Define spare time as outlined in the contract
d) Distribute ownership in Hacker’s favor so he feels more recognized in the company
for his work
e) Distribute ownership in Star’s favor so he makes his deserved profit
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f) Avoid litigation to avoid bad publicity and save-face and keep company from
dissolving
g) Create binding agreement with Gates so he will invest in both PowerScreen and
HackerStar’s future products
h) Prove that “spare time” is any time Hacker should have been devoting to the
company; therefore PowerScreen should be owned equally by Hacker and Star
i) Prove that Hacker has the “spare time” to do what he pleases other than business
related matters
6. Positions sort out. (“The shopping list” sorted according to your interests. What
do you need most?)
Most Important
 Avoid litigation to avoid bad publicity and save-face and keep company from
dissolving
 Prove that Hacker has the “spare time” to do what he pleases other than business
related matters in order to satisfy his interest to freely develop products
 Create binding agreement with Gates so he will invest in all of Hacker’s future
products, so Hacker is free to develop as he pleases without worrying about funding
Less Important
 Distribute ownership in Hacker’s favor so he feels more recognized in the
company for his work. This is less important because Hacker favors brand
recognition over profits.
 Keep financial and development roles separate. This is a possible solution for
giving Hacker limitless research and development opportunities; however, if they
can reach an agreement amicably, this won’t be necessary.
7. Positions numerical evaluation. (How much you want to take of each item on the shopping list?
decide minimum and maximum according to your interests)
a. Maximum …… Minimum …..

b. Maximum …… Minimum…..
c. Maximum …… Minimum ……
d. Maximum …… Minimum ……
e. Maximum …… Minimum ……
f. Maximum …… Minimum ……
8. Objective criteria for determining positions to reason with.

a. Look at precedents concerning investor and developer relationships
b. Utilize one-text procedure
c. Determine how other companies have defined free time
d. Use current market standards to decide if PowerScreen is considered a competitive product
------------------------------------------------------------------------------------
CREATIVE OPTIONS: Possible solutions to unlock the negotiation in each of its points
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1. Compensate HackerStar for company time and equipment Hacker used while developing
PowerScreen. Total remaining profits will be allocated solely to Hacker.
2. Convince Gates to buy out Star’s company shares so that Star will be compensated for
previous investments and released from the contract
3. Sell 100% of the shares of HackerStar to Gates and Star will be released from contract and
Hacker will have the funds to create a new company
4. Convince Gates to purchase 1/3 of the company, so Star will not be required to contribute
all the capital and it will be called HackerStarGates
5. Destroy everything related to PowerScreen, and no one will receive profit or recognition
from the product
OTHERS POSSIBLE FUTURE AGREEMENTS: which both parties can win and drive future agreements
in the long term.
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Guillermo A.

Preparation Guide for Negotiation

2) What can obtain both parties with a long-term relationship?

3) Matters to be treated or “things” to discuss at the meeting, requests.

2. Interests ranking. Eliminate those that are duplicated.

4. BATNAS (Brainstorming). Sort according to your interest’s preference.

5. Matters to be discussed (positions). (The shopping list).

a. Maximum …… Minimum …..

8. Objective criteria for determining positions to reason with.

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