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employee of Burndy-Japan in 1972 and president of Burndy-Japan on
May 30, 1973. Burndy-US was dissatisfied with him as president
and wanted to replace him.5
When Kambe retired, Sumitomo recommended Akimitsu Hijikata
(Hijikata) to be president. Hijikata had previously worked for
Sumitomo. Burndy-US had no nominees. Hijikata succeeded Kambe
as president.
Burndy-US became dissatisfied with Hijikata as president in
the late 1980s and early 1990s. Burndy-US wanted to remove him
from office but could not without approval from Furukawa and
Sumitomo.
5. 1988 Technical Assistance Agreement
Burndy-US and Burndy-Japan signed technical assistance
agreements in 1973, 1983, and 1988, which they negotiated at
arm’s length and which specified how Burndy-US would help Burndy-
Japan produce and sell Burndy-US products. Those agreements also
stated the amount of royalties and management fees Burndy-Japan
would pay to Burndy-US and how Burndy-Japan would treat its and
Burndy-US’s patents. Burndy-Japan paid royalties to Burndy-US
because Burndy-US provided Burndy-Japan licenses to manufacture
and sell products and technical assistance.
5 We discuss petitioners’ contention to the contrary below
p. 36.
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