Can you believe it? Ninety-one percent of our nation’s manufacturing companies were involved in one or more new lawsuits in 2007, according to Fulbright & Jaworski LLP, a law firm in Houston, Texas. The report, published in the January 2008 issue of Manufacturing Engineering, went on to say that 56% of these companies encountered more than 20 new lawsuits in 2007. A depressing 70% of them spend $1 million or more per year on business disputes.
I am in full support of protecting intellectual property and upholding legal contracts. However, many companies have developed a culture of litigation. Rather than considering every possible alternative, companies are quick to throw a team of lawyers at the problem. Once that happens, costs skyrocket and there’s often no end in sight.
What’s it going to take to ease this problem? The money and other company resources that are spent on litigation could be used to design and manufacture better products and improve customer support. If you have ideas, I’d like to hear from you.