We have, once again, a big company that wants us to sign an absurd contract, to supply them with some difficult electronics. Of course, they want to walk away owning all of our IP, free and forever. Plus about another 20 insane greedy-lawyer show-stoppers. They essentially want us to sit up and beg for the privilige of being ripped off by Big Name Inc.
One provision is called Open Costing. We would document all our costs, subject to audits. We'd be allowed 10% parts overhead, 5% G&A, and a 10% profit. We would be expected to continuously work at reducing costs, with all the savings going to Big Name.
Why don't they try to get 3M or NI or Agilent to sign something like that?
What's crazy is that...
- Anyone stupid enough to sign their contract is proven to be about 60 IQ points shy of being able to do the design
- Open Costing is really cost-plus, a clear incentive to maximize the product cost at design time.
This is funny: they sent me an agenda for a visit, and one hour was allocated for "Meet and Greed"