Reborn since 1993

Chapter 303 Li Yidao
"Donngling Hi-Tech and Silver Sable have always regarded Logitech as allies!"

Li Dongling looked at Daniel and said, "However, as allies, we should cooperate in a fair and equitable way, so that such an alliance can continue!"

Daniel took a deep breath. He knew that if he wanted Tanglin Hi-tech to obtain the patent authorization for the optical mouse today, he would probably be unable to do so without peeling off the skin.

"This is natural!" Daniel said with a forced smile, hoping that Li Dongling's knife could cut more gently.

After Li Dongling and Ren Yuefeng looked at each other, they said to Daniel, "The patent for the Silver Sable optical mouse can be licensed to Logitech, but Logitech should also show corresponding sincerity!"

After saying that, Li Dongling handed over the role of making a fool of himself to Ren Yuefeng, who was "livid" just now, and the latter said to Daniel.

“Donngling Hi-Tech can license all optical mouse patents and technologies, including optical engines, to Logitech.

But every time Logitech sells a mouse that uses a set of Silver Sable patents, it has to pay a 7% patent fee. In addition, the mouse, optical sensor, and digital signal processor must be purchased exclusively from Silver Sable! "Ren Yuefeng said what the lion said without a red face and a heartbeat.

Hearing these words that clearly meant that Logitech was going to be cut off, even though he was mentally prepared and ready to be cut, Daniel almost couldn't help but jump up.

"This is impossible!"

"It is impossible for Logitech to accept such conditions. No mouse manufacturer can accept such cooperation!" Daniel shook his head like a rattle.

But now, in the global mouse industry, the only optical sensor that is commercially available is the optical sensor mounted on the Silver Sable optical mouse, which was jointly developed by Silver Sable, Dongling High-Tech Department, Hanxi Joint Laboratory, and Dongxin Semiconductor of.

As for Logitech now, a mouse can only be sold for a dozen dollars at most, and the more expensive ones are dozens of dollars. Logitech's profit is really not high. The price cannot exceed one hundred dollars, and the profit is about 20%.

Once the optical sensor can only be purchased from Silver Sable, Logitech will not be able to develop the optical sensor, the core component of the optical mouse, and will have to be controlled by Donglin Hi-Tech in the future.

There is also the 7% patent fee, which is really scary. Logitech’s profit from selling a mouse is how much is left after excluding production, labor, transportation, publicity and other expenses!
Now we are not at the point where a high-end mouse can sell for thousands of dollars. At that time, the profits of mice were high, and the profit of some top-grade mice could reach 400%.

Daniel's attitude was very determined. He knew that if he agreed to such conditions, Logitech would never be able to turn around again.

Daniel was at a loss for words. Logitech was planning to build a factory in China and build a Logitech mouse production base in Suzhou because the production costs in Europe were too high and Logitech couldn't afford it.

The Silver Sable optical mouse has been disassembled by Logitech a long time ago. You know what the most important component of an optical mouse is, which is the optical sensor. To the mouse, it is like a human eye.

Now Silver Sable takes 7%, plus the money spent on buying the optical sensor, Logitech’s work for Silver Sable is almost in vain.

There is a completely different matter between an optical sensor that can be purchased from Silver Sable and a sensor that can only be purchased from Silver Sable.

Li Dongling glanced at Daniel and said to him, "Actually, there are also America, Japan and other places in Europe. The cooperation conditions proposed by manufacturers coming to the mainland are much harsher than those offered by Silver Sable! "

In the previous life, only three companies in the world could produce mouse optical sensors, Agilent, Microsoft, and Logitech. However, Agilent had the best technology. Microsoft and Logitech could also produce them, but they were mainly for their own use. Agilent was the supplier. manufacturer, a mouse brand sold to the world.

"Li, Logitech really can't accept such conditions!" Daniel refused to let go.

Logitech has done research on the domestic market, and he also knows that what Li Dongling said is the truth. When those overseas companies cooperate with domestic companies, the conditions they put forward are almost ten times more harsh than this. Domestic manufacturers are in Give them free time.

Even if there is a mouse sensor that can replace the Silver Sable, it will take time to develop.

Even in the previous life of Qualcomm, a mobile phone only cost 5% of the selling price of the whole machine. As a patent fee, a mobile phone worth yuan would have to pay Qualcomm a patent fee of yuan. Of course, this does not include the chip fee. Yes, if you purchase chips from Qualcomm, the cost will be endless.

Whoever develops the most advanced optical sensor has a grip on the mouse industry. Whether this thing is easy to develop, Daniel doesn't know.

"According to this profit sharing, what is left for Logitech?" Daniel shouted with a blushing face.

When Li Dongling heard this, he looked like he had a headache, while Ren Yuefeng had a straight face. When Daniel arrived here, he had given up hope for this trip to Hanxi.

Daniel feels that Logitech has only two options next. Either it can bypass Silver Sable's optical mouse patent wall, or it can just copy it regardless. This will directly ruin Logitech's reputation, and then it will be outnumbered by Silver Sable. It's all a lawsuit.

The two paths, no matter which one you choose, are not easy for Logitech. It also means that Logitech will undergo huge changes in the future, and even its listing may be affected!
You know, Daniel is planning to let Logitech be listed on the Swiss Exchange and the Nasdaq Exchange at the same time. But if the lawsuit is entangled, let alone listing in both places, even whether it can still be listed on the exchange will be a question. unknown. When he thought that the cooked duck had flown away, and that the wealth and freedom that had been at his fingertips, including private jets, yachts, private islands, and mansions, were all gone, Daniel's heart felt like a needle pricking him and he couldn't stop hurting!

"President Daniel, Tanglin Hi-Tech has another plan, you can consider it!"

Li Dongling suddenly spoke, leaving Daniel unable to recover for a moment.

"For 20% of Logitech's equity, Silver Sable wants to get 20% of Logitech's equity!"

Li Dongling said directly, "Donngling Hi-Tech can use the optical mouse patents and technologies held by Silver Sable to invest in Logitech. Once it becomes a shareholder, Silver Sable will no longer receive any royalties from Logitech, and Logitech can use Silver Sable's mouse patent for free!
Of course, optical engines, optical sensors, and Logitech must be purchased from Silver Sable. In addition, in the future, Silver Sable can establish a laboratory with Logitech to jointly develop new mice, optical lenses, optical sensors and other products! "

People often have the greatest expectations for even trivial hopes after experiencing disappointment.

If Li Dongling had been so bold from the beginning and said he wanted 20% of Logitech's equity, then Daniel would probably be unwilling to do so, and he might as well just leave in shame.

But the negotiation was about to break down just now, and now that Li Dongling has thrown out the cooperation, Daniel suddenly feels that it doesn't seem to be that excessive...

"20% is impossible. Now Pacosta, Marini, I, and I hold less than 65% of Logitech's equity. It's impossible to give Silver Sable such a high equity stake!" Daniel said after thinking for a while.

Over the years, Logitech has given up a lot of equity to investment institutions and computer manufacturers in order to attract orders. Although the two founders of Logitech, he and Marini, still hold a controlling stake in Logitech, they will go public in the future. , a lot of equity will need to be dispersed for financing, and then the control of Logitech's board of directors will be a bit subtle.

"19%!"

“Up to 14%”

After some further bargaining, Li Dongling and Daniel agreed, "For 18% of the equity, Silver Sable can pay an additional $ million to Daniel, Pacosta, and Marini, and the voting rights for this equity will be given to Daniel." acting!
If Logitech doesn't agree to such conditions, I don't think any mouse manufacturer will refuse. If Logitech doesn't agree, Silver Sable will have no choice but to find other partners! "

After Daniel thought about it, he stood up and stretched out his hand to Li Dongling, "Deal!"

The conditions proposed by Li Dongling are of course not the best choice for Logitech, but they are not the worst either. Now Logitech needs to get the patent and technology of the optical mouse and get the order quickly, otherwise the market will be lost. Not to mention, there may still be trouble in going public.

For this reason, it is affordable for Logitech to pay a corresponding price. Is it more important to give Silver Sable this equity, or to lose orders worth hundreds of millions or more than one billion US dollars, or even the possibility of failure to go public? Big loss?

It was the lesser of two powers, and Daniel made the best choice now. Even if it turns out that the deal was a loss in the future, that was only hindsight. Now Daniel knew that doing so would be detrimental to both him and Logitech. it's the best!

For Donglin Hi-tech, 18% of Logitech's equity is definitely not safe, but when Logitech goes public in the future, the equity will be more dispersed. As long as Silver Sable can get about 25% of the equity, it can control Logitech!

When the time comes, Logitech will also become one of the overseas vests of Silver Sable and Tanglin Hi-Tech. It is hard to say when this vest will be effective, but having this vest is crucial!

"If we can reach the same cooperation with other mouse manufacturers as Logitech, then in the next few years, Silver Sable will rely on its own shipments and its optical mouse patents to supply optical sensors to other mouse manufacturers. and other parts.

It is expected that the annual income will be more than 150 million US dollars, and may even reach more than 200 million US dollars. Of course, this is an ideal situation! "

Ren Yuefeng said to Li Dongling, his words couldn't help but be filled with excitement.

Silver Sable is the first project since the establishment of Tangling High-tech. For Ren Yuefeng and the first group of people who joined Dongling High-tech, the Silver Sable project is a special existence.

Being able to earn more than 100 million US dollars a year from a relatively "niche" product project would be beyond the reach of Silver Sable domestically or even overseas.

For Tangling Hi-tech and Silver Sable, this funding is enough for the research and development team of Tangling Hi-Tech Silver Sable Project to continuously develop higher-performance mice.

When Daniel walked out of the headquarters of Tanglin High-tech, he felt that the big stone that was weighing on his heart had been lifted, making his steps feel a little lighter. In front of the headquarters of Tanglin High-tech, Daniel passed by another man. Daniel stopped instinctively and looked back. He smelled a similar scent from the other person. Daniel was sure that the other person was definitely a professional manager.

Just looking at the other party's hurried steps, Daniel shook his head. He didn't know whose leeks came to Dongling Hi-Tech, waiting to be stabbed. Anyway, Daniel had experienced it. Li Dongling's stab was really painful. ah……

(End of this chapter)