Business is war. Anyone who doesn't think so hasn't got the enough scars to understand this yet. As a small entity, any time you tangle with large well-funded companies you have to be very aware of the fact that they could shaft you in a dozen different ways whenever the please. That's the hard and cold reality of it.
Contracts and agreements only serve to possibly give you the option to sue, and nothing more. They don't create a guarantee of recovery or reparations in any way at all.
I had one very painful incident with a large Korean multinational corporation a few years ago. This was over a hardware design. We devoted about eight months --nearly a million dollars in cash and man-hours-- to complete a set of designs based on components and assemblies that this OEM was to provide.
They wanted to get our business and pull us away from their main competitor. In-person meetings where had with the top three VP's in the US. Promises were made both verbally and on-paper. Short version: When we were finally ready to go into production we were told that the components in question --components they had recommended and guaranteed as long-availability components-- had been discontinued. Their recommendation: "You need to redesign your product line".
Soon afterwards I learned that other companies that had selected the same components were under the same dire situation. One particular company had closed a deal with the US government and was about to get sued for tens of millions of dollars for not delivering on their contract. On our front, this one event nearly destroyed my company at that time. We survived only to get taken out during the economic downturn due to having been weakened by this event.
In looking at the potential to sue this company our attorneys concluded that they'd need a minimum of $250K just to consider pulling that trigger and another $250K available past that. They expected this multinational to simply bury us with paperwork and an army of lawyers, with the only goal being to cause financial pain and get us to quit. Their recommendation: "Figure out how to survive and lick your wounds. It is nearly impossible to go after these guys and actually come out ahead".
This is how large companies, effectively, make their own rules, their own laws, if you will. While this wasn't the only tangle I've ever had with a large company it was the worst I've had to endure. I was the first domino that got tipped over in a chain of events that ultimately killed a business that I spent the better part of ten years building.
I don't think there's any point in posting it publicly. Particularly several years past the event. Tell me why you want the name. If it makes sense I'll certainly provide it privately along with further details if necessary.
Contracts and agreements only serve to possibly give you the option to sue, and nothing more. They don't create a guarantee of recovery or reparations in any way at all.
I had one very painful incident with a large Korean multinational corporation a few years ago. This was over a hardware design. We devoted about eight months --nearly a million dollars in cash and man-hours-- to complete a set of designs based on components and assemblies that this OEM was to provide.
They wanted to get our business and pull us away from their main competitor. In-person meetings where had with the top three VP's in the US. Promises were made both verbally and on-paper. Short version: When we were finally ready to go into production we were told that the components in question --components they had recommended and guaranteed as long-availability components-- had been discontinued. Their recommendation: "You need to redesign your product line".
Soon afterwards I learned that other companies that had selected the same components were under the same dire situation. One particular company had closed a deal with the US government and was about to get sued for tens of millions of dollars for not delivering on their contract. On our front, this one event nearly destroyed my company at that time. We survived only to get taken out during the economic downturn due to having been weakened by this event.
In looking at the potential to sue this company our attorneys concluded that they'd need a minimum of $250K just to consider pulling that trigger and another $250K available past that. They expected this multinational to simply bury us with paperwork and an army of lawyers, with the only goal being to cause financial pain and get us to quit. Their recommendation: "Figure out how to survive and lick your wounds. It is nearly impossible to go after these guys and actually come out ahead".
This is how large companies, effectively, make their own rules, their own laws, if you will. While this wasn't the only tangle I've ever had with a large company it was the worst I've had to endure. I was the first domino that got tipped over in a chain of events that ultimately killed a business that I spent the better part of ten years building.
Be careful.