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... 40% of the profits from research results and patents. Management rights, however, would remain with Hardy’s investment firm. In essence, Shockley’s primary responsibility would still be research. The patents would be owned by Hardy’s company, and profits would be divided according to their shares.

With that, Shockley Semiconductor Laboratory was established. It began advertising, leveraging Shockley’s reputation as the inventor of the transistor in the electronics industry to attract tal ...

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