Eureka Case 25 min Entrepreneurship

The Seventy Percent Problem

You are Fernando López Aguilar, co-founder and chief executive of AgroTech Honduras. Eleven days ago, a Costa Rican start-up was granted a patent on the very thing your team has spent two years building. On Friday 30 January 2026, your management committee expects to hear what you will do with that project.

The situation

AgroTech sells sensors and software that help coffee, cocoa, palm and pineapple growers in Honduras, El Salvador and Guatemala use less water and fertiliser. In 2025 it billed USD 4.2 million, with 65 staff and 280 clients, and spent USD 600,000 on three projects. The most advanced, TERRA, a soil analyser using visible and near-infrared light, is 70% complete, costs USD 200,000 a year, and its prototype is due in the second quarter. Customers in Copán already have a date.

AgroSense Technologies' patent is valid in the United States, Mexico and Costa Rica; its reach in Honduras is unclear. Even so, your legal adviser, Ricardo Estrada, puts at 70% the chance that a court would find TERRA infringing. A lawsuit would cost USD 200,000 to 400,000 in lawyers, and a loss USD 1 to 5 million in damages, plus an order to stop selling. AgroSense, which has no presence in Honduras and is looking for partners in Central America, has said it would license for USD 50,000 upfront and a 20% royalty on sales.

Your team is split. Carlos Mendoza, your partner and head of sales, wants to launch on time: he thinks the patent may not reach Honduras. Sofía Paz, head of engineering, proposes redesigning the method to steer clear of it, for USD 100,000 more and a six-month delay. The finance director would rather close TERRA and move its money to the other two projects.

Your job in this case: look at where your budget sits and what the patent could cost you, compare what each path costs with a simple model, and commit to one before the committee.

The decision

What do you do with TERRA now that the patent has been granted?

  • A · License AgroSense's patent and launch with it
  • B · Redesign the method to steer clear of the patent
  • C · Close TERRA and move its money to PEST and YIELD

The rest of the case is locked

The data, the calculations, the decision itself and what happens next open with your institution's access code.

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