Face to face in Moscow: Facebook’s founder meets Prime Minister Dmitry Medvedev

October 2, 2012

Facebook’s founder Mark Zuckerberg met Russian Prime Minister Dmitry Medvedev in Moscow to discuss intellectual property issues.

Zuckerberg was beginning his quest for new global markets, as the leader of the newly floated Facebook organization [May 2012]

The Voice of Russia reported:

On Monday [1st October 2012] Dmitry Medvedev and Facebook founder Mark Zuckerberg had an informal meeting at the Prime Minister`s residence outside Moscow.

Since Mr Medvedev has his personal video blog, not to mention accounts on Facebook, Twitter and LiveJournal, his meeting with Zuckerberg, whose social networking site already has over 995 million users, has become a hot topic for the media.

Mr Medvedev was reported as saying

“The social networking sites have become extremely popular worldwide. And Facebook`s contribution to this is obvious. If I am not mistaken, some 10 million Russians are on Facebook. Of course, it is not that much compared to the US, where there are about 30 million Facebook users. Still, these figures are impressive. We also have our national social networking sites such as Odnoklassniki (Classmates) and VKontakte (Staying in touch). Besides, everybody is using Twitter. This is a kind of a different reality. And you personally have contributed to this”

Mr. Medvedev and Mr Zuckerberg discussed copyright protection on the web.

“As a lawyer myself I am very interested in this issue. I used to do research on it in the past. I believe that if an object of intellectual property is not listed on the web as requiring special protection it could be used freely” Mr. Medvedev said.

Friends or not?

When the meeting was over, Mark Zuckerberg presented Dmitry Medvedev with a T-shirt printed with the address of Medvedev`s Facebook page. The Voice of Russia report did not say whether Dmitry and Mark had friended each other, and if so, when.

The IP challenge

The conversation ever-so-politely introduced the challenges of intellectual property rights facing Facebook and other Western organizations as they seek to work globally.

The bonds that tie

It occurred to me that for all the differences in culture, America and Russia have been parts of the world which have seen the rise of self-made entrepreneurs cum billionaires. In that sense Zuckerman has a head start over the more traditional Fortune 100 CEOs in doing business there.

Acknowledgement

Image from biz Russia. IP rights as indicated by Mr. Medvedev


Glaxo new build decision defies laws of time and space. Or have I misread the story?

March 23, 2012

Tudor Rickards

The day after the Budget, Glaxo announces plans to build a new factory in Ulverston, England, influenced by financial changes favourable to the industry. The timing seems to defeat principles of business decision-making processes until we look more closely at the story

The Mail outlined the background to the decision which will create 1000 jobs in England and Scotland in the pharmaceutical industry

Britain’s £10billion pharmaceutical industry was given a welcome boost yesterday as drugs giant GlaxoSmithKline announced plans to create 1,000 jobs. The company, which employs 15,000 UK workers, confirmed it is pumping £500million into its manufacturing sites. This includes building a new factory at Ulverston, Cumbria – the firm’s first in 40 years. GSK’s move was influenced by tax cuts in the Budget on money invested in research and development. Sir Andrew Witty, GSK’s chief executive, said the introduction of a ‘patent box’, which cuts corporation tax rates on profits from UK innovations, fuelled the decision.

As well as building the new factory, it will inject £100million into Scottish sites at Irvine and Montrose, and £80million at its site in Ware, Hertfordshire, to boost capacity for inhalers and at Barnard Castle, County Durham, for skin-care products.

A lightning fast reaction?

Good news for Britain. But how was the company able to make the announcement within hours of the budget announcement? Perhaps in part because as the article continued:

Sir Andrew, who is part of the Prime Minister’s business advisory group, said: ‘The patent box has transformed the way in which we view the UK as a location for new investments.’

First new build for forty years

The BBC reporting threw more light on the developing story

Glaxo made its announcement after Chancellor George Osborne confirmed in the Budget on Wednesday that the government would go-ahead with the introduction a so-called patent box.
These allow corporations to pay a lower rate of tax on profits generated from UK-owned intellectual property.

“The introduction of the patent box has transformed the way in which we view the UK as a location for new investments, ensuring that the medicines of the future will not only be discovered, but can also continue to be made here in Britain,” said Glaxo chief executive Sir Andrew Witty. “Consequently, we can confirm that we will build GSK’s first new UK factory for almost 40 years.”

A little more history

Tucked away at the end of the BBC article was a little more history of the way the decision was reached. Glaxo said last year that it would build a new facility at one of four potential sites in the UK if a patent box, [the favourable change in intellectual property taxation] first proposed by the Labour government in 2009, was brought in.

News breaks quickly but may have been a while in the making

So maybe the decision reported as if it followed the announcement in the budget was actually the public announcement of a carefully planned business strategy. It would have involved quite a bit of behind-the-scenes negotiations.

Something old, something new?

Another fact not mentioned in the current news story: Glaxo has a great deal of local knowledge of Ulverston. The image (from the company website) is of the plant built there in 1948.