Chapter 628 – Giving out authorization like crazy Part 2 of 2
Before Sony’s representative could argue, two security guards came and drag him out. The rest of the people from Sony stood up.
“Mayor Liu, Minister Zhao, is this the way your country treat 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 of this tender is Wind and Rain Electronics. Also, your company had said that you all are not interested in getting the authorization for the patents. Why are you all here? Are you trying to create trouble here? We have all the rights to ask you to leave.”
The rest of the representatives were shocked. Didn’t they say the Chinese officials like to brown nose foreigners? Why were they so firm?
Jiang Wanmeng also said: “Can the people from Sony please leave? Please don’t delay the rest of the companies from bidding.”
The representatives from the other companies looked at Sony’s people angrily. Just hurry up and leave. Stop wasting our time. Even the representatives from Toshiba were looking at them.
The Sony representatives were furious. They only wanted the second-generation technology. Everyone in the room wanted the latest technology, and they were kicked out just because they voiced it out. Everyone would benefit if Wind and Rain gave out authorizations for the newest technology. Yet no one from other companies said a word to help them!
Especially Toshiba. We are collaborating to set the industry standards. How can you treat us this way?
Sony’s representative knew that he would be fired if the rest of the companies got the authorization except for Sony. He would even be blacklisted in the industry. He is finished!
After the representatives from Sony left, Jiang Wanmeng continued: “We will authorize all the interested companies. But there is another condition. If two companies from the same country want the authorization from us, and one of the companies wants exclusive authorization, then the authorization fees will increase by 10 USD. If 3 companies are competing, then it will be increased by 20 USD. The amount will increase base on the number of companies interested in the authorization.”
“Mr. Jiang, isn’t 50 USD for a unit too high? Also, this figure is based on the number produced. Shouldn’t it be based on the sales figures?” A representative from Pioneer asked.
“I said earlier that we had spent a lot on the R&D and the authorization fees will not be cheap. All of you should know how much profits you will get from this technology. I believe that all of your companies had tried to develop your own VCD players. If any of the companies here feels that this authorization fees are too high and cannot accept it, it’s fine with me. You all are free to walk away.”
Jiang Wanmeng had learned this negotiation style from Feng Yu. If you are not happy, get lost! There were more than 100 companies here. If you don’t want the authorization, there will still be many other companies queuing up.
You think the price is high? Then you can choose not to buy it!
With Sony as an example, the Pioneer representative immediately reply: “We can accept this. Our company will accept your conditions.”
The rest of the representatives were cursing in their hearts. This idiot. If you say you cannot accept this price, we will surely back you up. All of us can work together to lower the fees.
Now you say your company will accept this price. There is no way we can bargain.
It was also a slip of the tongue. After the representative from Pioneer sat down, he noticed the angry stares, and he realized the mistake he made. He almost slapped himself for talking too much. The rest of the representatives here will surely voice out about the prices. Why did he ask about this first?!
“Can accept the fees? Good. The representatives from the rest of the companies should have decided. Those that wanted the country’s exclusive authorization can come over here. The companies that do not want exclusivity, and only normal authorization can wait in your seats.”
A few representatives wanted to stand up, but they saw the rest of the people remained in their seats, they changed their minds. Most of the representatives were laughing at this authorization model in their hearts.
What model is this? What’s the use if we are the only ones producing VCD players in our country? We will still need to compete with products from other countries. In the end, it will be Wind and Rain Electronics who benefits. We can just cooperate internally.
After we got the authorization, we can set up a joint venture factory and earn money together. The company who wants to put their brand on the product will have to give up part of their shares.
Countries like Japan and the US have lots of electronics companies. If it was based on 10 USD per company, then the company who got the exclusive authorization will have to pay at least 200 USD for every unit manufactured.
How much profits can they get after giving so many fees to Wind and Rain? Also, in their country, Wind and Rain VCD were also selling there. Philips will also be competing with them. These companies were not so stupid to opt for exclusive authorization.
But these companies did not know that was what Feng Yu wanted. He wanted VCD to rise up and force the VHS and Laserdisc systems out of the 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 and Philips can produce DVD players in the future. Philips also did not have the rights to authorize other companies to use the technology. A significant portion of the profits will still go into Feng Yu’s pocket.
These people might still make some profits, but the authorization fees paid to Wind and Rain Electronics was not a small amount. Furthermore, Wind and Rain Electronics and Philips will be introducing the Super VCD soon. All these companies will just be paving the way for Wind and Rain Electronics and Philips.
“No companies want to have the exclusive rights to the technology in their countries? Fine. This is the contract for industry standard technology. 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 the prepayments are in, you all get the related technologies authorization.” Jiang Wanmeng 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 stupid enough to ask for exclusive authorization. Jiang Wanmeng had expected this too. All these Electronics brands will be competing with each other, but the biggest winner will be Wind and Rain Electronics.
There were more than 100 world-renowned electronics companies present. Even if half of them signed the contract, the VCD players manufactured annually will be more than 1 million. The VHS player will lose their market share soon and be obsoleted.
When there were more VCD players in the market, the demand for VCD disc will increase. Wind and Rain electronics and Philips had planned for this in advance. They were able to make vast amounts of profits just from producing VCD disc alone. They also wanted to get rid of all their VCD disc to prepare for the production of the bigger storage disc, DVD disc!
After these companies got the authorization, Wind and Rain Electronics will announce the number of companies who had bought the rights to use their patents. This will prove that Wind and Rain Electronics is the world’s leading electronics company. Their status in the industry and brand value will increase a lot!
The representatives of the companies who had signed the contracts were whispering among themselves. Some companies decided to collaborate and manufacture VCD players together, and some gave up. These were small companies. Unlike the big companies, they do not have a reputable brand and had a high cost of production. They also lack distribution channels. If they were to sign the contract, they would suffer heavy losses.
In the end, only 46 companies signed the contract. Among them, 4 were Chinese companies.
Those companies that did not buy the authorization left quietly. Those who had purchased the authorization were not happy either. In competition in this industry was intense!
The only person smiling was Feng Yu. He had made money out of old technologies! Branding and technology are the lifelines of a company!