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Tohoku University's Okamura Laboratory had been conducting research on ferrite, assisted by grants from Tohoku Metal Industries, a member of the Sumitomo group, and Totsuko. In 1953, Okamura happened to discover a form of ferrite which promised to be commercially viable and he registered apatent.
Due to a heart ailment, however, Okamura was in no condition to negotiate licensing agreements with commercial firms. Acting on his behalf, Takasaki had gone first to Tohoku Metal Industries, which had put up the larger share of the funding. The company expressed their willingness to discuss patent royalties: "We'll get back to you," they said. Takasaki waited, but the answer was slow in coming. He paid a second visit, but was only told, "We'll consider it." Still there was no firm answer.
Having no experience of how corporations work, Takasaki wondered to himself whether a company's decision-making process was always like this. He then went to Totsuko, where for twenty or thirty minutes he was quizzed by Ibuka and Morita. "The royalty is very high, isn't it?" Ibuka said as they were about to part. Takasaki explained, citing the major patents owned by the Research Institute of Metallurgy, that the royalty rates for materials were higher than those for manufactured sets. "All right, then. Please see our research director and his team." Ibuka thus referred him to Iwama and the others who would be actually dealing with the material, and they cross-examined Takasaki for three hours.
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 | | Ibuka proudly showing the machine used for the production of transistors. |
Even Takasaki was dismayed at what sticklers these people were. About the time they were running out of questions, Ibuka, who had left them to it until then, joined Iwama and his colleagues. "Well?" he inquired. "We've covered everything," came the answer.
"Then, Mr. Takasaki, we're ready to sign." Ibuka made it sound very simple. He would press his seal to the agreement as drafted. Takasaki was astounded by the sharp contrast between their attitude and that of Tohoku Metal Industries.
In mid-July, a month after Takasaki's visit, Morita traveled to Sendai. "We've signed, but we don't have the personnel. Will you do the job?" he asked Takasaki. "For the sake of Totsuko's future, we must have a materials plant. It can be anywhere in Japan you like." Takasaki was tempted, but he did not give his reply at once. Then in August he had a phone call from Ibuka, asking to come see him.
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