Reborn since 1993

Chapter 382 Conquering the enemy without fighting

Litigation is very expensive, especially cross-border lawsuits. When Dongling Hi-Tech had a patent lawsuit with Microsoft, it first went to Logitech and exchanged the patent for money before hiring Vulture Law Firm to start the lawsuit against Microsoft.

The patent lawsuit involves only a fight between two companies, the anti-dumping company, but a life-and-death struggle between two industries is even more expensive.

Torch Group needs to hire a lawyer and a public relations company, and $3.5 million may not be enough. It is unknown what the litigation costs may be incurred in the future.

However, this money will definitely not be borne by Torch Group alone. The entire upstream and downstream companies in the lighter industry chain will definitely have to share the burden.

As for what to do with those who are unwilling to pay, that is of course easy to deal with. Any company that is unwilling to bear its share of litigation fees will no longer be allowed to appear in the Torch Industrial Park, will not be recognized by the National Lighter Import and Export Association, and will no longer be able to export lighters overseas in the future!

Sometimes, when drastic measures are needed, they must be taken. Only by taking drastic measures with a heart of a bodhisattva can peace be achieved!

Gu Dayang was shocked to hear the litigation fee of 3.5 million US dollars. Converted into RMB, this is almost equivalent to 30 million. Spending 30 million to fight a lawsuit is also a new record in the country.

"If the litigation funds are insufficient in the future, Torch Group and the National Import and Export Association can provide additional litigation funds!"

Upon hearing this, Gu Dayang felt as if a great mission had been entrusted to him. Tens of millions of dollars were being spent on him. If he failed to win the lawsuit, Gu Dayang would not know how to face public opinion when he returned home.

Taking a deep breath, Gu Dayang gritted his teeth and said, "I will do my best to win this lawsuit..."

Li Dongling stretched out his hand and looked at Gu Dayang, "Professor Gu, it would be great if we could win this lawsuit!

But on the Torch Group side, we hope that you can lead the legal team to do the most important thing, which is, if the winner cannot be determined in a short period of time, or the probability of winning is low, I hope that this lawsuit can be dragged on, no matter what method is used, this lawsuit must be dragged on!

As long as you can hold it off, you will be the hero of this anti-dumping case!"

Gu Dayang looked at Li Dongling in confusion. What other companies fear most when it comes to lawsuits is that the lawsuit will be dragged on. A lot of money, manpower, material resources and time are wasted, but in the end the lawsuit is dragged on.

Seeing Gu Dayang's puzzled expression, Zhang Xiaocheng coughed and cast an inquiring look at Li Dongling, wondering whether to tell him about Torch Group's other strategy.

After seeing Li Dongling nod, Zhang Xiaocheng spoke up, "Professor Gu, you have studied this anti-dumping lawsuit, and you should know that domestic lighter manufacturers have not really triggered the anti-dumping laws of old European countries!

This lawsuit is entirely due to the French Bec and other lighter manufacturers maliciously targeting domestic lighters and using means outside the rules. This lawsuit itself is unfair. "

“The Torch Group is preparing to start looking for opportunities to enter overseas markets next month. Especially during the litigation period, the Torch Group’s disposable lighters need to gain an advantage in the old European market!
Even the absolute advantage over BAK and other companies is necessary. Only by being able to fight can we stop the war, and only by daring to fight can we talk about peace. To defeat the enemy without fighting is the best of all!"

Gu Dayang stared at Li Dongling and Zhang Xiaocheng in the office with wide eyes, and his throat felt very dry.

Although Zhang Xiaocheng's words were reserved, lawyers are experts in playing word games. Gu Dayang could not help but understand Zhang Xiaocheng's hidden meaning. The Torch Group was planning to wipe out all the old European lighter companies like Bic. In this way, there would naturally be no victims. The plaintiffs would be dead, and the lawsuit would naturally be over...

The method is feasible, but Gu Dayang feels very nervous. The anti-dumping company launched by Bick against domestic lighters in Europe does have ulterior motives.

But the Torch Group is obviously prepared to let the lighter companies of Bic ask for a beating. Didn’t they say that domestic lighters were dumped in old Europe? Then the Torch Group will really dump them once and completely smash the old European lighter industry and beat them to death. Then no one will make a fuss in the future.

“Professor Gu, this lawsuit requires you to bear the frontal firepower. You have to face the legal teams of BYD and other companies, as well as the people from the old European Trade Department. Only if you hold on here can Torch Group have a chance!” Li Dongling gave Gu Dayang a look that said, this depends entirely on him.

"I...I will definitely live up to your trust!"

What else could Gu Dayang say at this moment? Once he got on the pirate ship, there was no way he could get off easily. What Gu Dayang needed to consider now was how to face the legal team from Old Europe and buy as much time as possible for the Torch Group.

……

When the Torch Industrial Park appeared on the news broadcast and the National Lighter Import and Export Association was established, many companies in the Torch Industrial Park applied to join the Lighter Import and Export Association at the first opportunity.

Subsequently, a large number of domestic lighter brands and parts companies also began to announce that they would move to the Torch Industrial Park. The office buildings and factories built in the Torch Industrial Park began to see a sharp increase in occupancy rate within a few weeks. After all, most people are wise and capable. There are only a few who are stubborn and will not turn back until they have experienced a setback and bang their heads against the wall until they bleed.

When the annual export share of lighters was controlled by the Torch Group with the help of the Lighter Import and Export Association, major domestic lighter companies began to realize that if they wanted to export lighters in the future, they would have to get the export share from the Torch Group.

After the Lighter Import and Export Association was established, it started three things in a row. The first one was to represent the entire domestic lighter industry in responding to the old European anti-dumping lawsuit.

The second fire was the Lighter Import and Export Association, which announced that it would work with the Safety Supervision Bureau, Quality Supervision Bureau, Standards Committee and other departments to jointly introduce regulations and standards for the lighter industry.

These standards are basically formulated in accordance with Torch Group's lighter standards. It is true that they are beneficial to Torch Group, but in fact, they also provide the domestic lighter industry with standards for the first time.

With the standard for lighters, at least domestic lighters will no longer be produced in broad daylight with shoddy products that cheat domestic users. Domestic users will have a certain degree of safety when using lighters.

The third initiative of the Lighter Import and Export Association is to establish the National Lighter Safety Foundation. Torch Group has invested one million yuan in start-up funds into this foundation. In addition, it is stipulated that future members of the Lighter Import and Export Association must pay membership fees of no less than 50,000 yuan to this foundation every year.

Torch Group has established a national lighter safety foundation and will set up special lighter safety inspectors to conduct random inspections of lighters in various parts of the country at irregular intervals each year in order to crack down on counterfeit and pirated goods.

In addition, we seek to cooperate with insurance companies in order to resolve losses caused by lighter quality problems that are not caused by human factors. The Lighter Safety Foundation can bear part of the losses.

In fact, this is also to re-establish the brand and image of domestic lighters, not only in China but also overseas, so that domestic lighters can establish an image of safety, reliability, and willingness to bear the responsibility for quality. Only in this way can domestic lighters be recognized by more people and go further!
Of course, the establishment of the Lighter Safety Foundation is actually to help domestic lighter manufacturers such as Torch Group avoid possible risks in the future. There is nothing foolproof in the world. If a lighter safety problem really occurs in the future, the Lighter Safety Foundation can be relied upon to minimize the impact on Torch Group.

The Torch Group has ignited the domestic demand for lighters. The establishment of the Lighter Import and Export Association has had a huge impact on the entire domestic lighter industry. Companies and practitioners in the entire industry are experiencing this shock. This shock will only disappear when the new lighter industry pattern is formed!
……

"The Torch Group is really generous. This is the nth notice they have sent out in the past few days!"

Inside the Xinhai Lighter Company, Huang Guangze looked at the new document notice signed by the Lighter Import and Export Association and couldn't help but exclaim in amazement.

Even those who dislike the National Lighter Import and Export Association have to admit that Torch Group is truly changing the entire industry.

"This is the latest one. It requires domestic lighter manufacturers that manufacture for Japan, South Korea, and America not to engage in malicious competition, and it stipulates the minimum manufacturing fee!"

After Huang Guangze finished speaking, he handed a document to Huang Xinhai, and there was a sigh in his words that domestic lighter manufacturers are almost going to extreme lengths to grab OEM orders from overseas lighter manufacturers, and are willing to make a few cents for each lighter, or even no money at all.

Now, the Lighter Import and Export Association has set minimum manufacturing fees for domestic lighter OEM manufacturers in the name of environmental pollution and electricity consumption. Although competition among lighter OEM manufacturers remains fierce, they are able to avoid losing money.

As for those Japanese and Korean lighter manufacturers, whether they are willing to accept the price increase of lighter OEMs is their business.

In fact, Japanese, Korean and American lighter manufacturers have long been hit hard. They have used anti-dumping and tariffs to drive away domestic lighter brands, but they still use domestic lighter manufacturers for OEM production.

It seems that the shelves of Nissan convenience stores are filled with Nissan brand lighters, but they are basically all domestically manufactured.

They do not use domestic OEM, the production cost is frighteningly high, and it is even hard to say whether there is a production line. An ordinary lighter produced costs more than ten dollars and cannot be sold at all. Even with tariffs, domestic lighters can make a comeback and grab the market.

This led to the situation that when the Lighter Import and Export Association, acting as a referee and supervisor, redefined industry rules to prevent domestic manufacturers from competing with each other, and set a minimum OEM price for each lighter, life became noticeably better for many domestic lighter manufacturers.

"The key lies in these two. Torch Group has big plans!"

Huang Xinhai pointed heavily at the lighter industry standard and the lighter safety foundation. From these two documents, he felt that he had underestimated the Torch Group.

Those who do not plan for eternity are not qualified to plan for the moment, and those who do not plan for the overall situation are not qualified to plan for a region. From the things that Huang Xinhai has obtained through the Torch Group and the Lighter Import and Export Association, it is obvious that the Torch Group is clearly eyeing not only the domestic market.

"That depends on whether Torch Group can win this anti-dumping lawsuit!" Huang Guangze shook his head and said.

(End of this chapter)