Insight Out Learning - Case Study 2

4C Design is a product design engineering consultancy based in Glasgow. It was created in 2001, and consists of a partnership between Peter Inglis, Robin Smith and Nick Lonie. 4C Design was created after the partners completed their degrees in Product Design Engineering at Glasgow University and The Glasgow School of Art.

The company works with a range of products from childrens' toys through to medical products. They work with a range of clients across all sectors and throughout the UK.

Model 1: The Design Consultants
4C Design consultancy regularly work with clients who either have an idea for a type of product or have an existing product that they need to modify for aesthetic, manufacturing or cost reasons. The 4C team will develop and go through the design process with that product and deliver appropriate solutions to the client. Once the commissioning company (client) have paid for design service, the Intellectual Property (IP) and risk of protecting that product will be the commissioning company's

4C's responsibility is to develop the idea, develop potential strategies for material and manufacture. 4C will hand over intellectual property to the client which keeps the working relationship very

Benefits of the Model
As a consultancy the risk level they take on is very minimal.

Negative Aspects of the Model
The possible rewards are restricted as 4C Design are not initiating the idea or production or delivery. Their involvement is on a fee basis and will not return additional monies unless the client wishes 4C to take on additional responsibilities - as in the model below.

Model 2: Collaborating with the Client - Sharing the Reward
An inventor might come to 4C with an idea, and request to take it beyond a design consultancy stage; this means a greater level of involvement and potential risk if 4C wish to invest in prototyping, market testing and sourcing production outlets and potential investment money.

This requires far greater commitment and faith in the original idea and equally faith in being able to work jointly with the inventor / client. IPR may agreed to be shared if 4C are investing commitment above consultancy or a deal may be developed over profits if the product is successful in the market place.

Confidence in both parties is highly important in this model as 4C and the client are collaborating and have responsibilities in key areas of the RISKIT model.

Positive Aspects of the Model
If the product is a success 4C Design reap the rewards

Negative Aspects of the Model
Client and idea need to be trustworthy. Bargaining over rewards could be a sticking point. Legal skills should be employed to negotiate an appropriate deal suitable for both parties concerned. If 4C take on board development costs and invest own time then there is risk if the rewards in terms of profit and / or product profile are not realised

MODEL 3: The Future - Owning Intellectual Property Rights and Developing a Product Range
Eventually 4C would like to develop a successful product range that they can licence to a producer/distributor. This will allow 4C to concentrate on their own designs and reap the rewards on their own ideas (rather than their clients). Future income from any licence agreement (depending on the success and longevity of the product of the products) will assure long-term income.

Definition of IPR (Intellectual Property Rights) - Owning the rights to an idea: being able to reap the rewards of an idea.

Benefits of the Model
In this model 4C have been released from the production and delivery aspect of their business. This has given them more time to develop their designs and forecasting element of their business. 4C own IPR on all their products.

Negative Aspects of the Model
This model is an ideal solution for 4C as they wish to develop the design aspects of their company. However, it is important to recognise that, although they do not have direct day-to-day responsibility for the production and delivery, 4C will need to monitor their accounts and their sales within the licence agreement. This is to enable them to continue to develop strategies for their company's growth.