Reborn since 1993

Chapter 1180 Blood Lessons

The most important purpose of these measures is to make companies that want to enter the MP3 industry pay "taxes" to Dongling Hi-Tech through the International Music Foundation.

Regardless of whether other companies make money or not, the MP3 tax belonging to Dongling Hi-Tech is non-negotiable, not a single penny less!

For small and medium-sized MP3 manufacturers, or even small workshops, the focus is basically on volume, meaning low profit margins and high sales volume. The quality isn't great either, so the profit margins are already low.

In addition, the low-end and counterfeit MP3 market is already highly competitive, with virtually no established brands. These users don't care about brands; they only care about price. Whoever offers the lowest price will buy it!

This requires them to offer prices lower than their competitors in order to sell their products, thus creating internal competition.

But no matter how much competition they face or how low their profits are, they still have to pay the MP3 tax. As for not paying it?
Then you'll be in for a beating. Paying the fine might mean earning less, or even nothing, but not paying it means you're guaranteed to get a beating.

Once the market reaches a certain level, those small workshops and counterfeit MP3 players will naturally disappear because they can't afford the patent fees or the profits are too low.

This is essentially an industry reshuffle, only more subtle and inconspicuous, like being slowly but surely cut. When these small MP3 manufacturers eventually go bankrupt, it can't be blamed on Dongling Hi-Tech.

Perhaps they should even say thank you, because Dongling Hi-Tech gave them an opportunity to "compete fairly" with giant companies in the MP3 industry.

As for why they didn't win in the end, it's not Dongling High-Tech's fault. It's because they were technically inferior, and the giant company didn't play by any rules, actually engaging in a price war with them. Is that something a human being would do?

For giants like Toshiba, Sony, Samsung, and Apple that want to enter the MP3 industry, MP3 patents are a powerful tool to suppress them.

They can certainly launch their own MP3 products without the permission of the International Music Foundation.

But similarly, it's also "reasonable" that the International Music Foundation, supported by Dongling Hi-Tech, frequently launches lawsuits, sales bans, and claims against them in courts around the world.

They tinker with these products whenever they feel like it, and most importantly, they create the impression that these brands of MP3 players are suspected of infringing on patents, copying, or being counterfeit. They ask, which high-end user would spend hundreds of dollars to buy a product suspected of being copied and then be mercilessly ridiculed?

These are all overt strategies, whether for small manufacturers or giant companies.

Even if small manufacturers know that paying patent fees is like being fleeced, are they willing to miss this opportunity to soar to new heights?
If a giant company is willing to pay patent fees, it's blatantly acknowledging that it's becoming Feiyan Technology's subordinate. Using someone else's patents while wanting to be the boss is just ridiculous.

As for those who are unwilling to be Feiyan MP3's junior partner, unwilling to obediently be the second or third in the industry, and want to challenge Feiyan's position in the high-end MP3 market, then they should just wait to be hammered!
"The technology department and the legal department should issue a statement as soon as possible to announce to the public the International Music Foundation's acquisition of the MP3 patent!" Li Dongling said.

Gao Zhiyuan rubbed his hands together eagerly and said, "Don't worry, Mr. Li, we know what to do!"

When it comes to specific operations, Kao Chih-yuan and the legal department have extensive experience.

Knowing how to reasonably shift the blame without leaving any legal grounds for complaint, the philanthropist Li has already pointed him in the right direction. If he can't even do that, he should step down and give way to a more capable person as soon as possible.

When Fu Cheng, Gao Zhiyuan, Chen Tao, and the others walked out, Li Dongling shook his head. The global MP3 industry was likely to experience a period of turmoil.

But this process is necessary for any emerging industry. In the beginning, there are hundreds or thousands of companies competing in one industry.

In the end, when everything settled down, only a handful of companies, or even just one or two, remained, swallowing up the entire industry.

In the MP3 industry, if Feiyan MP3 can ultimately prevail and occupy the top position in the high-end MP3 market, even if the entire industry is destroyed, it will not have a significant impact on Feiyan Technology.

Li Dongling began preparations again for his trip to the port city.

This trip to the port city will include not only bringing along the internet companies under Dongling High-Tech, but also Torch Group.

Since both Zorro and Ruyan are registered in the Cyberport Global Technology Center Industrial Park in Hong Kong, these two brands have gained a certain degree of recognition in Hong Kong globally, which is also thanks to Cyberport.

Li Dongling still has a lot of things to deal with next.

In particular, Cyberport's market capitalization needs to be hyped up to make it the top stock in Hong Kong next year, and then find a suitable buyer to take over. This requires hyping up the Cyberport concept to make it look like it has a bright future.

……

Meanwhile, as Dongling High-Tech was preparing for its trip to Hong Kong, signs for the International Music Foundation appeared in its office buildings in Beijing's Zhongguancun, Hong Kong, New York, and the UK.

Subsequently, a piece of news that shook the entire technology industry was first broken by Yahoo, the world's leading portal website. This was clearly news intentionally released to Yahoo. "The International Music Foundation has reached an agreement with the world's largest MP3 patent holder to acquire MP3 patents for $22 million, making the International Music Foundation the world's largest MP3 patent holder!"

"The International Music Foundation has announced that it will be open to MP3 patents, allowing the licensing of more than 140 patents!"

"The International Music Foundation claims that it is interested in cooperating with manufacturers willing to pay for MP3 patents and is 'willing' to help them grow together!"

The sudden news shocked all the companies that wanted to enter this industry; it was just too unexpected.

Previously, many companies in the technology industry were discussing who could become the second company to obtain the MP3 patent from Feiyan Technology.

Now, the MP3 patent has suddenly appeared in the hands of an international music foundation that appeared out of nowhere, disrupting the preparations of various companies.

But for small manufacturers looking to enter the MP3 industry, this is good news.

Because as long as you are willing to pay the patent fee, you can get a patent from the International Music Foundation and start producing MP3 players openly and legally.

Furthermore, the International Music Foundation's announcement, particularly the final sentence about helping partners "grow together," is incredibly meaningful.

Nobody knows why Feiyan Technology and Dongling High-Tech suddenly sold their MP3 patents to the International Music Foundation, but if these companies have no connection, then they're just fooling idiots.

If this is just a smokescreen, then after obtaining the patent from the International Music Foundation, could they obtain MP3 decoding chips, screens, and other components from Dongling High-Tech's component supply chain, and then directly assemble an MP3 player?
Upon seeing the news of the establishment of the International Music Foundation, different people had different interpretations, but everyone knew that this was a new "opportunity." Even if it was tainted, for many people, it was still a life-changing opportunity, just like the PHS phone!
The new headquarters building of UTStarcom in Hangzhou has now been completed, and UTStarcom has moved into the new headquarters.

UTStarcom is now a major taxpayer in Hangzhou and a NASDAQ-listed company, making it a calling card for the city.

Wu Ying, the founder of UTStarcom, has also reached a new peak in his career, showing the potential to become a leader in Hangzhou and even the entire technology industry.

As for the fellow townsman surnamed Ma who established the Yellow Pages and was invited to Yanjing at the end of last year to join the China International E-commerce Center, his fame and influence in Hangzhou and the Jiangsu-Zhejiang region are far less than that of Wu Ying.

"This international music foundation is definitely a front for Dongling Hi-Tech. Dongling Hi-Tech loves to play these shady tricks!"

Wu Ying, who had already started growing a beard and was developing a full beard, couldn't help but say this to Lu Hongliang, another founder of Starcom.

Having tasted success, UTStarcom naturally wanted to acquire the MP3 patent, hoping to further boost its stock price and market value!
"But Dongling High-Tech should not be underestimated; they must have a reason for using these methods!"

Lu Hongliang spoke up, saying that he dared not underestimate Dongling High-Tech in the slightest, given that it had managed to suppress UTStarcom for so many years.

Even after Xiaolingtong was sold off, UTStarcom never reached the same level of success as Xiaolingtong. UTStarcom is still struggling in the domestic market, while Xiaolingtong was a huge hit overseas.

If we're going to belittle Dongling High-Tech, then what about UTStarcom?
"The key question is, what is Dongling High-Tech's intention in doing this?"

Wu Ying frowned and said that he was a little confused about what Dongling High-Tech was up to, and was afraid that he might be tricked if he was not careful.

"Regardless of what Dongling High-Tech plans, it all depends on whether Starcom wants to obtain MP3 patent fees and produce music players. If so, they'll have to approach the International Music Foundation!"

Lu Hongliang said to Wu Ying, "This matter seems to have nothing to do with Dongling High-Tech anymore, at least on the surface."

"I have no choice but to go to Yanjing!"

Wu Ying frowned and said, "No matter what we think, UTStarcom has to get the patent."

Wu Ying and her colleagues in China witnessed firsthand how Dongling Hi-Tech crushed manufacturers like Lianxiang, who produced USB flash drives without obtaining patents. Dongling Hi-Tech effectively drove Lianxiang out of the USB flash drive industry and made them pay a large sum of money, so they still dare not touch USB flash drives.

So, regarding MP3 patents, since Dongling Hi-Tech has provided a way out, UTStarcom should just take it. Regardless of whether there are hidden traps underneath, if they really go head-to-head with Dongling Hi-Tech—no, I mean the International Music Foundation—they will probably be hammered even more severely in the end. These are all lessons learned the hard way.

In a short time, a large number of domestic manufacturers began to flock to the International Music Foundation in Yanjing, hoping to obtain MP3 patents.

At the same time, a plane that took off from Singapore landed at Yanjing Airport. A 22-year-old man got off the plane. He was Huang Zhang, a senior executive at Singapore Aegean Company.

(End of this chapter)