In 1999, Johnson & Johnson (J&J) sued Amgen over their 14-year alliance to sell a blood-enhancing treatment called erythropoietin. The relationship had begun in the mid-1980s with J&J helping to commercialize Amgen's blood-enhancing treatment, but the partners ended up squabbling over sales rights and a spin-off drug. The companies could not agree on future products for the JV. Amgen won the right in arbitration to sell a chemically similar medicine that can be taken weekly rather than daily. Arbitrators ruled that the new formulation was different enough to fall outside the licensing pact between Amgen and J&J. What could these companies have done before forming the alliance to have mitigated the problems that arose after the alliance was formed? Why do you believe they may have avoided addressing these issues at the outset?
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