Extraordinary Genius - Chapter 628
Chapter 628 – Giving out authorization like crazy (Part 2 of 2)
Before Sony’s representative could argue, two securityguards came and drag him out. The rest of the people from Sony stood up.
“Mayor Liu, Minister Zhao, is this the way your countrytreat your guests?” A Sony representative shouted.
Deputy Mayor Liu turned and saw the look in Feng Yu’s eyes.He immediately knew Feng Yu’s attitude. Before Minister Zhao said anything,Deputy Mayor Liu stood up and said. “We are not the organizer. The Organizer ofthis tender is Wind and Rain Electronics. Also, your company had said that youall are not interested in getting the authorization for the patents. Why areyou all here? Are you trying to create trouble here? We have all the rights toask you to leave.”
The rest of the representatives were shocked. Didn’t theysay the Chinese officials like to brown nose foreigners? Why were they so firm?
Jiang Wanmeng also said: “Can the people from Sony pleaseleave? Please don’t delay the rest of the companies from bidding.”
The representatives from the other companies looked atSony’s people angrily. Just hurry up and leave. Stop wasting our time. Even therepresentatives from Toshiba were looking at them.
The Sony representatives were furious. They only wanted thesecond-generation technology. Everyone in the room wanted the latest technology,and they were kicked out just because they voiced it out. Everyone wouldbenefit if Wind and Rain gave out authorizations for the newest technology. Yetno one from other companies said a word to help them!
Especially Toshiba. We are collaborating to set the industrystandards. How can you treat us this way?
Sony’s representative knew that he would be fired if therest of the companies got the authorization except for Sony. He would even beblacklisted in the industry. He is finished!
After the representatives from Sony left, Jiang Wanmengcontinued: “We will authorize all the interested companies. But there isanother condition. If two companies from the same country want theauthorization from us, and one of the companies wants exclusive authorization,then the authorization fees will increase by 10 USD. If 3 companies arecompeting, then it will be increased by 20 USD. The amount will increase baseon the number of companies interested in the authorization.”
“Mr. Jiang, isn’t 50 USD for a unit too high? Also, thisfigure is based on the number produced. Shouldn’t it be based on the salesfigures?” A representative from Pioneer asked.
“I said earlier that we had spent a lot on the R&D andthe authorization fees will not be cheap. All of you should know how muchprofits you will get from this technology. I believe that all of your companieshad tried to develop your own VCD players. If any of the companies here feelsthat this authorization fees are too high and cannot accept it, it’s fine withme. You all are free to walk away.”
Jiang Wanmeng had learned this negotiation style from FengYu. If you are not happy, get lost! There were more than 100 companies here. Ifyou don’t want the authorization, there will still be many other companiesqueuing up.
You think the price is high? Then you can choose not to buyit!
With Sony as an example, the Pioneer representativeimmediately reply: “We can accept this. Our company will accept yourconditions.”
The rest of the representatives were cursing in theirhearts. This idiot. If you say you cannot accept this price, we will surelyback you up. All of us can work together to lower the fees.
Now you say your company will accept this price. There is noway we can bargain.
It was also a slip of the tongue. After the representativefrom Pioneer sat down, he noticed the angry stares, and he realized the mistakehe made. He almost slapped himself for talking too much. The rest of therepresentatives here will surely voice out about the prices. Why did he askabout this first?!
“Can accept the fees? Good. The representatives from therest of the companies should have decided. Those that wanted the country’sexclusive authorization can come over here. The companies that do not wantexclusivity, and only normal authorization can wait in your seats.”
A few representatives wanted to stand up, but they saw therest of the people remained in their seats, they changed their minds. Most ofthe representatives were laughing at this authorization model in their hearts.
What model is this? What’s the use if we are the only onesproducing VCD players in our country? We will still need to compete with productsfrom other countries. In the end, it will be Wind and Rain Electronics whobenefits. We can just cooperate internally.
After we got the authorization, we can set up a jointventure factory and earn money together. The company who wants to put theirbrand on the product will have to give up part of their shares.
Countries like Japan and the US have lots of electronicscompanies. If it was based on 10 USD per company, then the company who got theexclusive authorization will have to pay at least 200 USD for every unitmanufactured.
How much profits can they get after giving so many fees toWind and Rain? Also, in their country, Wind and Rain VCD were also sellingthere. Philips will also be competing with them. These companies were not sostupid to opt for exclusive authorization.
But these companies did not know that was what Feng Yuwanted. He wanted VCD to rise up and force the VHS and Laserdisc systems out ofthe market.
The crucial patent technology was still in Feng Yu’s hands.He will still be ahead of the rest of the companies. Only Wind and Rain andPhilips can produce DVD players in the future. Philips also did not have therights to authorize other companies to use the technology. A significantportion of the profits will still go into Feng Yu’s pocket.
These people might still make some profits, but theauthorization fees paid to Wind and Rain Electronics was not a small amount.Furthermore, Wind and Rain Electronics and Philips will be introducing theSuper VCD soon. All these companies will just be paving the way for Wind andRain Electronics and Philips.
“No companies want to have the exclusive rights to thetechnology in their countries? Fine. This is the contract for industry standardtechnology. Those companies who are interested can come forward to get a copy.You all can sign the contract now if there are no more questions. Once theprepayments are in, you all get the related technologies authorization.” JiangWanmeng said with a disappointed look on his face. But it was all an act.
Feng Yu had told him earlier that no one would be stupidenough to ask for exclusive authorization. Jiang Wanmeng had expected this too.All these Electronics brands will be competing with each other, but the biggestwinner will be Wind and Rain Electronics.
There were more than 100 world-renowned electronicscompanies present. Even if half of them signed the contract, the VCD playersmanufactured annually will be more than 1 million. The VHS player will losetheir market share soon and be obsoleted.
When there were more VCD players in the market, the demandfor VCD disc will increase. Wind and Rain electronics and Philips had plannedfor this in advance. They were able to make vast amounts of profits just fromproducing VCD disc alone. They also wanted to get rid of all their VCD disc toprepare for the production of the bigger storage disc, DVD disc!
After these companies got the authorization, Wind and RainElectronics will announce the number of companies who had bought the rights touse their patents. This will prove that Wind and Rain Electronics is theworld’s leading electronics company. Their status in the industry and brandvalue will increase a lot!
The representatives of the companies who had signed thecontracts were whispering among themselves. Some companies decided to collaborateand manufacture VCD players together, and some gave up. These were smallcompanies. Unlike the big companies, they do not have a reputable brand and hada high cost of production. They also lack distribution channels. If they wereto sign the contract, they would suffer heavy losses.
In the end, only 46 companies signed the contract. Amongthem, 4 were Chinese companies.
Those companies that did not buy the authorization leftquietly. Those who had purchased the authorization were not happy either. Incompetition in this industry was intense!
The only person smiling was Feng Yu. He had made money outof old technologies! Branding and technology are the lifelines of a company!
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