Cadence Case Study
What is your opinion of the behavior of the following actors Joe Costello: Joe Costello was the CEO of the Cadence Design System during the great Silicon Valley intellectual property theft. Joe constantly fought the critical against the Avian to seek Justice and finally he got it. During this complete prosecution phase he faced many hurdle and criticism from the industry leaders and from customers as well. He ignored all those criticism and faced the hurdle effectively and got Justice for the wellness of the
Cadence Design System, which again created the very good reputation of it in the market. Joe seems to be very dedicated to his work and having very good ethical values and was totally against the unethical act of any one. He continued his struggle against the Intellectual theft until he got the Justice for his company. As media houses and industry leader criticized him and his board customer and friends urged him to leave the case but still he didn’t stopped his fight. Vice president of Avian blamed him that he is attacking him personally but he didn’t care about any criticism ND finally proved that he was right.
Finally Cadence design got the huge amount of $460 million Just because of dedication and determination of Joe Costello. Gerry Has: Gerry Has was the CEO of the Avian. With 6 former employee of the Cadence, he started the Avian. This person was involved in the great conspiracy against the Cadence by stealing the source code from the Cadence. Gerry was the victim of that offence by still he was blaming the Costello that he is attacking me personally and was claiming that Avian products are better than the Cadence. But finally he invoiced by the court and got the 7 years of prison and civil lawsuit.
Even though Avian was the public company but still he was operating it like a sole proprietorship. He always used to put his family member as the payroll employee with huge salary. He has also invested on many companies. So totally he was selfish and dishonest person and resulted in the great tread-theft and persuaded others to do that also. Former Cadence employees that went over to Avian: All Cadence employees who went to the Avian were the part of great conspiracy against the Cadence. Every one reached the confidentiality agreement of the employer and stolen complete product code.
Just because of stolen code Avian become the more than $1 billion organization, all six person breached the integrity Just to earn money. Finally 6 former Cadence employees convicted by the court and got 7 years of prison. All 6 collectively created the history in the Silicon Valley by great trade-theft. Customers and potential customers of Cadence and Avian: Before the final investigation and court Judgment, the entire customer did not believe that Costello claims that Avian is using the stolen resource code in their product. Customers were satisfied with the Avian products.
Customers were also blaming the Costello that he is wasting everyone’s times. One of Cadence customer saying that- “If Joe is right, this would make an example of someone who went over and didn’t come back” and that proved right at the end of this case. Before the final decision normal customer were criticizing the Costello for wasting the time and taking the Avian fight personally. After the final decision when 6 Avian managers convicted for the trade-safety theft. Customer perception changed and decided not to buy any product from the Avian.
So it show that customer were taking very quick decision either it was criticism of Costello or leaving the Avian as their vendor for the design products. Avian! ‘s they found many irregularity in the Avian. They ware doing the good work, which comes positive for the Cadence. External Auditors found incomplete and missing contract documentation and inadequate information about the recording of the revenue. Auditor found many mistakes, which include the lack of, timely and accurate account reconciliations in a number of areas, including cash, unbilled accounts receivable, prepaid commissions, and investments in affiliates.
So Auditor did their job transparently and represented the clear picture of the Avian financial practices. Avian! ‘s lawyers: Vans’s lawyer seen the things in other ways and they sere insisting that Avian never used the stolen code from the Cadence. But they were wrong because one unintentionally left bug in the product was also present in the Avian Products. So all these circumstances were showing that Vans’s lawyer were wrong ND were given their service to the wrong person or company whose foundation was started with the trade-theft, intellectual property theft.
The prosecutors: The prosecutors started the case hearing on May 14, 2001 and were very persistent and heard every thing from both side and given the best Judgment what they can give. Prosecutor rejects the plea of all 6 Vans’s manager and given them the 7 year of prison. The tactics used by the Avian managers and lawyer to stall the case did not misguide prosecutor. Finally prosecutors had given the decision in the favor of Cadence, which was the great victory by the Cadence against the trade-theft. What is the responsibility of the venture capitalist(s) who funded Arrays (Avian! ? “If the company is already selling a product, the prospective venture investor will want to talk with current customers as well as prospects” (DAZZLER, 2001). So for the venture capitalist, it is important to look at the current situation of the all the pending cases against the company. Capitalist must have to look at the every aspect of the company about his business procedure, technology used and product being selling. But when PIP of the Avian was launched in the Jejunely, Avian got the $31 dollar of investment from the venture capitalist.
After that Avian become unstoppable and done 13-acquisition of $230 million. Venture capitalist invested on the Avian when there was serious investigation was in progress against the Avian. But Has assured them that all the charged against them are bogus so venture capitalist got persuaded and invested very much. After the Avian become the more than $1 dollar company. So before investing, it is required that have a deep analysis about the current status f the company and its business, technology and products. An ideal background which would enable one to evaluate products and technologies would be technical training and work experience in an operating company in engineering, science, or clinical affair” (DAZZLER, 2001). So before investment background verification is very necessary to invest in right place with right peoples. What is the responsibility of the underwriter who handled Arrays/Avian! ‘s PIP? Underwrite is actually an organization who take all the responsibly for the deciding quantity and pricing of the shares.
Underwriter also takes the responsibility to arrange the investors also so that maximum shares can be sold. So underwriter who handled Avian PIP launching is also responsible for such big blunted case. Due to Pip’s launch Avian got the huge investment from the Venture capitalist after which Avian given the tough competition to Cadence and Synopsis Inc. So Under write are also responsible for the expansion and trade-theft, intellectual property theft because in investigation storage devices were found which was containing the source code of the Cadence.
Evaluate Avian! ‘s board of directors Board of director Avian seems that they are preventive measure to save them from any controversy because when in 1995, Has asked the board of director to reconsider hiring Sighs but they refused for it and saying that they can not allow anyone what is facing the criminal investigation and after some time in police got the hard drive filled with Cadence source code. So I think that decision of Board of director was right. But company base was founded with that kind of theft itself.
Has was very convincing person and convinced the Board of directors and that all the case s against him are bogus and baseless. Board of directors was always generous to Has. Has act like putting his close friends and the Board of directors also ignored family member in the top position and paying very salary. So in this case it seems that every thing as running with the mutual consent of Has and remaining board of directors. Should there be a corporate death penalty as Dan Giggler proposed? “The Sentencing Guidelines also provide for a “death penalty’ for organizations whose primary purpose is criminal.
The Guidelines implement this death penalty by setting a fine sufficient to divest the organization of all its net assets” (Noon, 2012). So in united state there is provision if any company is doing criminal activity then its penalty can be the death penalty. From all the investigation by the CUB and police it is clear that foundation of Avian was the fraud, theft, trade-theft, persuading other to do theft for shake of some money. To retain in the market and to earn money Avian did the fraud where they can. For example they persuaded the “Sighs” to steal the area-based program and later on launched it over night.
So what they did was not acceptable at NY cost. I think that for the rise of Avian every body was responsible including investors, PIP under writer and shareholder. So I strongly believe that, for such kind of unacceptable offence death penalty should be the appropriate punishment. Shareholders and investors should get their money by selling Avian and rest of the amount should be paid the Cadence for the loss they occurred due to Avian. What could Cadence have done to better protect its intellectual property? It is very difficult to come up with internal intellectual property fraud.
But still some corrective assure could have taken to prevent the intellectual property fraud at the Cadence. As we can see that all the fraud were taken by transferring the source code into some hard drives. So any organization must ensure that no data would be transferred to any physical storage. So if At that Cadence had implemented the secure IT policies that all the port for the data transfer would be disabled and any external device can not be identified by the computer system. So it had not been possible to transfer the data in the hard drive what Avian guys done on their last days.