3 ms·

If a smaller company is 100% owned by a larger company then people suing the smaller company would have access to the large company's assets (there is some sort

If a smaller company is 100% owned by a larger company then people suing the smaller company would have access to the large company's assets (there is some sort of equity cut-off here, in banking I believe it's as low as 9.9%). Corporate law thought of this.

hugh3 16y ago
OK, so you set up a wholly independent company owned by a few employees. This company licenses the patent for NewDrug from BigCompany. Heck, you don't even have to do it with shelf companies. Hi there, I'm BigCompany, and I'm willing to license this drug which I think might work to any startup that feels like selling it! Or if that would expose me to liabiilty, I'm willing to license this substance which I developed which may or may not be useful as a drug. That would still be a win-win situation.
- WalterBright 16y ago
  As a consumer, why would you inject yourself with an untested drug from some unknown startup?
  - jbert 16y ago
    Marketing. (Which makes it not "unknown").
  - gaius 16y ago
    It sounds crazy when you put it like that, but people really will swallow a random pill given to them by a man they've never met in the toilets of a dodgy club in Brixton...