UAW letter #1
Subject: Union Empowerment Using Intellectual Property
Application to General Motors Negotiations
Dear Mr. Segal:
GM has a $6B a year R&D and aggressive patent program intent on capturing its share of the upcoming improved fuel efficiency push. It currently owns 10,339 patents and has 337 patent applications in the works. That is a huge portfolio.
Surprisingly, GM is not leveraging this patent portfolio for billions of dollars in annual royalties as do many other international corporations. I have always suspected the automotive industry of passivity and collusion; to the detriment of the employees,
My plea for Mr. Gettelfinger as GM pressures for more and more Labor concessions is to ask for an equal ownership stake in GM’s intellectual property portfolio for Labor. It is grossly undervalued on their books and possibly under-appreciated by GM’s management. It is currently used as a shield only to protect their turf and not, as it should, also a sword to garner large new revenues from competitors. Labor should share in its patent portfolio ownership, powers and enforcement; forging a true marriage in this fight for mutual survival.
GM 2006 Annual Report
December 31, 2006 Values in Millions
Amortizing intangible assets: Amount Amortization
Patents and intellectual property rights $ 488 $ 169
Intellectual Property," GM has established aggressive near-, mid- and long-term
plans to develop and bring to market technologies designed to further improve
fuel efficiency, reduce emissions, and provide additional value and benefits to
our customers. These include enhancements to conventional internal combustion
engine technology such as Active Fuel Management, variable valve timing
systems, and six-speed automatic transmissions. In addition, GM currently
offers hybrid-electric buses that are capable of improving the fuel efficiency
of city buses by 25% to 50% and reducing some emissions by as much as 90%.
Research, Development and Intellectual
Property In 2006, GM incurred $6.6 billion in costs for research, manufacturing
engineering, product engineering, design, and development activities related
primarily to developing new products or services or improving existing products
or services, including activities related to vehicle emissions control,
improved fuel economy, and safety of drivers and passengers in GM vehicles.
Labor should not be asked by GM to continually grant concessions without affording Labor a say in affecting its future recovery. The muscle of
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