The Darby management is not sure whether this is a good deal. In particular, Darby executives have heard all sorts of horror stories regarding agreements that the Chinese government has made and then...

The Darby management is not sure whether this is a good deal. In particular, Darby executives have heard all sorts of horror stories regarding agreements that the Chinese government has made and then broken. The company also is concerned that once its technology is understood, the Chinese will walk away from the agreement and start making these phones on their own. Because the technology is not state-of-the-art, the real benefit is in the low production costs, and the technological knowledge is more difficult to protect.