C
G','JDELINEF~ FOL-
GI-C)U; can frc::-. C'-'C..r_'-
knc-,.-*,-Iow and technology betweer, its
individu&2 operating
cornDanies and must ensure the success of such
transfer in
order to maintain its competive position in the
industry.
This document sets out the principles under
which.B-A-T
Germany has agreed to transfer technology to other
compa-
nies %,.-ith the Group as part of its strong
support of this
.. open-door" philosophy.
1. The objectives of these guidelines are:
i) to encourage profitable exploitation of its
techno-
logy by the B-A-T Group and
ii) to preserve the advantage of the Group
bypreserving
confidentiality and avoiding transfer of knowhow
etc.
to competitors.
2. Transfer may be effected by some combination
of:
- visits by receiving company personnel)
- handover of documentation, reports, drawincs
etc.;
- tests by B-A-T Germany;
- possibly engineering design projects carried out
by
B-A-T Germany for the receiving company;
- possibly actual supply of equipment by B -A -
T... Germany.
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3. In tc, ensuro o-,,:irl*-,-.: uEc- cl~ availatle
t".71011.1
i:. -r;c, Group PP&L) v:111 cuc)rd inal
tranE i e- . i
4. Receiving companies will sign a secrecy aqre
ement,
co=ies of which will also be signed by the key
people
in those companies concerned with applying the
knowhow.
They will be responsible for the maintenance of
confi-
denziality to the B-A-T Group.
5. Ma:~ufacture of equipment covered by the
knowhow will
nc-: be carried out by third parties unless
absolutely
necessary - in which case a special agreement on
licencing terms etc. will be arranged.
If components of a process have to be manufactured
ex--ernally the receiving company is responsible
for
guarding against leakage of the relevant knowhow.
6. A reasonable amount of test work etc. will be
free of
charae but should substantial effort be called for
from
B-A-T Germany a charge level will be agreed with
the
receiving company.
7. In collaboration with B-A-T Germany further
development
mav be carried out in Germany, in GR & DC or
elsewhere
as ap
.propriate.
In this way an active transfer of knowhow and its
intelligent
application provides a contribution to the
maintenance and
improvement of our product quality level and to
the reduction
of prcduction cost, key objectives in an
increasingly compe-
titive environment.
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~ACCO COORDINATION D EV -7 1Z F M --EN T
AN D
Mr. Bruell introduced a discussion on the
efficient
ON
coordination and development of the RAT Group's
tobacco
interests within the present organisatlonal
structure.
I i
He drew attention to the followinc:-
(a) ELAT is a decentralised Group; in contrast the
industry worldwide is less fragmented than
previously and principal competitcrs are
centralised
and autocratic.
(b) BAT's strength is in geographical dispersion
and
local brands while the US competitors' strength is
in international brands.
The principal issues discussed were:-
1. The conference confir-med that BAT's tobacco
CAC
interests were not maximising the effectiveness
and R&D
commercial exploitation of the Grcup's various
MARKETING
technological developments. P RO DUC T I ON
Certain elements within the current Hot Springs
acreement potentially impede the speed with which
commanies within the Group are aware of
development
and are able to commercialise technology.
IMarketing and consumer research, manufacturing
i,mprovements and product development techniques
and
methodology should be exchanged freely. Although
the bigger facilities in the operating companies
might be expected to make bigger inDUtS, the size
of
these facilities is in proportion to company
sales,
weichted for market sophisticatior, and all
comoanies will therefore benefit appropriately.
Product Development, if successful, will be
reflected in products. Successful products are the
;Jesired outcome and compensation w-111 accrue to
the
producer in licensing such products to users.
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ACTION
Prcduct, machinery and process developments which
are patentable should be protected by the
inventors
or users by agreermen-t- Such inventions will be
available to the Group and may be licensed"
outside
-:he GrouD. Under the "open door" policy early
-warninc will ensure lead time advantage to GrOUD
em b e r s -
In order to eliminate unnecessary duplication
and to make R&D as effective as possible, the CAC
=ommanies aaree to keep each other informed on
Programm,es, to exchange methodology and to pool
results.
Under this concept selective access to
=ommunication (personal and written) and
confidence
-n the maintenance of security is critical. Full
access to the R&D programme of each company will
be
available to a very small agreed list of senior
managers. The Group's R&D programmes for process
azid'product technology should continue to be
=oordinated through the annual R&D conference and
subsequent approval by the boards of the principal
caerating companies of the programmes agreed. The
m~SSC will be resoonsible for the complete
protection
of the criginating company's international
products/brand strategies.
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BATCO document for Province of British Columbia 4
November 1999