Return to 88: Starting from Marrying My Sister-in-law

Buy it out! Buy it out from the source!
Wu Ying was completely stunned! His mind went blank!
His mouth was open, his Adam's apple bobbing violently, but he couldn't make a sound.

The eyes behind the gold-rimmed glasses were filled with disbelief, horror, and even a hint of panic at being completely seen through and having the initiative completely taken away.

He originally just wanted to find a sugar daddy who could help him weather the storm and expand his business together!

He never expected that this young business tycoon would have such a sharp eye, such enormous ambition, and such... undermining tactics!
From the very first word, they aimed directly at the lifeline of technology, wanting to bypass UTStarcom's operations and directly control the goose that lays the golden eggs!

Moreover, Lu Yang's words, filled with certainty about the future value of PHS technology in the Chinese market, and his composure as if he had already seen through everything and was confident of victory, made Wu Ying feel an unfathomable chill and... awe.
“Mr. Lu… Mr. Lu… you…” Wu Ying’s voice was dry and hoarse, and he struggled to find the words to speak. “You want to buy out the patent? From the Japanese? This… this requires a lot of money…”

If he were to be successfully bought out by the person in front of him, then his future UTStarcom business operations in mainland China would be entirely dependent on the whims of this young man.

For a moment, he felt somewhat agitated and secretly regretted his rash decision to approach this young man for investment.

"Funding is not a problem."

Lu Yang didn't care what he thought. His tone was firm and unquestionable as he said, "Mr. Wu, you just need to tell me, which Japanese company is the source of the technology patent? What is UTStarcom's current relationship with them? Is it a pure license, or do you own some of the derivative technology patents? And, based on preliminary estimates, how much would it cost to buy out the long-term license for the mainland market, or even the global patent ownership?"

Wu Ying took several deep breaths, trying to calm the turmoil in his heart.

He realized that the young man in front of him was not joking or testing him, but was serious!

He quickly considered whether helping Lu Yang acquire the prodigy patent from the Dongying company would have a positive or negative impact on his UTStarcom.
There is no time.

They quickly came to the conclusion that this seemed to be a good approach.

So, while organizing the information, he quickly replied, "The core technology patents are mainly held by the research institute under NTT (Toyo Telegraph and Telephone Company), and DDI Pocket (DDI Mobile Pocket Company), a supplier of supporting equipment, also holds some key patents."

“UTStarcom obtained their regional license, mainly for some localization and peripheral device development based on their technical standards. As for the core patents... we do not have them.”

“Buying out…this requires direct negotiation with the patent holder in Japan.”

"As for the cost... it's hard to predict, Mr. Lu."

"PHS technology has not developed smoothly in Japan, and the number of users is far less than we expected. Their internal assessment of the value of this technology may not be high..."

“But if we show a strong intention to buy, especially for the mainland market, they may raise the price on the spot… Preliminary… preliminary estimate: buying out the long-term exclusive license for the mainland market may require an investment of tens of millions of US dollars. Well… if it is a global patent buyout… that would be an astronomical figure.”

“Tens of millions of US dollars…” Lu Yang pondered. Compared to the billions of dollars in patent fees he remembered, this figure was just a drop in the ocean!
I thought about it.

"Mr. Wu, I need more precise targets and price ranges."

Please compile a detailed report for me as soon as possible, including the background of the Japanese patent holder, a list of core patents, the current licensing model, and your estimated bottom line and possible upper limit for negotiation based on your understanding.

Remember, what I want is absolute control of the mainland market, and that will take at least ten years.

"Okay... okay, Mr. Lu! I'll get on it right away!" Wu Ying felt as if he had been injected with a shot of adrenaline. Although he was still shocked, Lu Yang's strong capabilities and clear goals gave him hope that the Xiaolingtong technology would flourish all over the Divine Continent, even if that hope came in a way he had never expected.

"Daddy! Daddy! Look at my castle!" Lu Fan's childish and excited shouts pierced through the frozen air.

The frost on Lu Yang's face melted instantly, replaced by a gentle smile. He nodded slightly to Wu Ying: "This is a matter of great importance and needs to be discussed in detail. There's no rush. I'll spend some time with the children first. Later, we'll find another place and sit down to talk about the specific details of this 'buyout' plan."

He stopped looking at Wu Ying's reaction, turned around, and strode towards his son, who was building a rickety sandcastle on the beach, and his wife, who had a gentle smile on her face.

Wu Ying was left alone, frozen in place as if under a spell. The sea breeze lifted the hem of his faded clothes. He looked at Lu Yang's back as he easily blended into the warmth of his family, then at the business card in his hand that seemed to have become burning hot, and then at the unfinished seaside building in the distance that Lu Yang had set his sights on. His heart was in turmoil.

He knew that the "lifeline" he had inadvertently found might have attracted a giant dragon that wanted to devour the entire fishpond.

But now that things have come to this, does he have any other choice?

Wu Ying shook his head.

After playing with the children on the beach for another half hour, Lu Yang saw that Lu Fan was so tired that his eyelids were drooping, and Lu Xin'er was also complaining of thirst with her little face flushed. Only then did Lu Yang tell Mingyue to take the children back to the hotel room to rest.

"I have some things to take care of, I'll go back as soon as I'm done," Lu Yang said to Yin Mingyue, his eyes filled with apology and reassurance.

Yin Mingyue nodded understandingly, without asking any further questions, and gently reminded her, "Don't overwork yourself, come back early."

She understood her husband and knew what the light shining in his eyes meant at that moment—it was his battlefield.

Watching his wife and children walk away, the tenderness on Lu Yang's face faded, and he regained the calm and sharpness of a seasoned businessman.

Instead of immediately going to find Wu Ying, he walked along the beach to the other side away from the crowd and found a relatively quiet rocky area where only the sound of waves could be heard.

After confirming that no one was around, Lu Yang took out a specially made satellite phone with multiple encryptions from his bag.

He quickly dialed an international number.

The phone rang a few times before being answered. A calm and slightly respectful voice came from the other end. It was Chen Fan, the overseas investment manager in Japan who was in charge of handling Lu Yang's huge "windfall."

"Boss?" Chen Fan's voice came through the radio waves, carrying a hint of inquiry.

"Chen Fan, it's me." Lu Yang's voice was deep and clear, carried away by the sea breeze and instantly disappeared into the sound of the waves. "I just met someone on the beach of Hailan Island, Wu Ying, the founder of UTStarcom. Have you heard of him?"

“Wu Ying? That guy who works with PHS phones?” Chen Fan had obviously heard of the name. “That’s right, I talked to him.” Lu Yang’s gaze drifted to the distant horizon where the sea and sky met, his tone carrying the excitement of having found prey. “He came to me to invest, wanting to promote PHS phones.”

But what I value isn't his company, but the PHS technology itself, or rather, the core patents held by the Japanese behind that technology.

Chen Fan on the other end of the phone immediately picked up on the key information: "Boss, you mean...we should just buy the patent directly?"

“Yes!” Lu Yang said decisively, “This technology is a niche product that’s barely surviving in Japan, but I think it just hasn’t found the right environment. In our China, I’m confident that it will take off in the next ten years or so, given the opportunity!”

The number of users will reach an extremely terrifying number, 90 million or even hundreds of millions!

Think about it, how much would the core patent licensing fees that support such a large market be?

This is a huge sum of money that needs to be paid out every year.

If I'm right, why can't we settle this huge patent royalties once and for all before the other party realizes it and can't possibly foresee it?

Lu Yang paused for a moment, letting Chen Fan process the information, before continuing, "I dare say, conservatively speaking, that in the next ten years or so, this license alone will bring the Japanese company that invented it over 10 billion yen in revenue! The unit is not Japanese yen, but RMB or even US dollars. In short, it's a huge fortune that you can make without lifting a finger. Let me be frank, I want to snatch it away."

Chen Fan visibly gasped on the other end of the phone: "Ten billion?! This...this is truly astonishing. Boss, if your prediction is correct, then it is indeed worth it for me to make a move here, even if it means giving up some small factories and projects that I had already secured."

"That's right! Before this technology really takes off in mainland China, and before the Japanese realize its enormous value in China, we should take the lead and secure long-term exclusive licensing rights for the mainland market, or even better, buy out all global patent rights! We can accomplish this great thing with a small investment!"

Lu Yang's voice carried an undeniable determination: "That's why I'm calling you. How much yen do we have left in our account in Japan? Is it enough to handle this?"

He clearly made his money by shorting the Nikkei during this period, following in the footsteps of Wall Street tycoons like Soros, and picking up scraps. But in Lu Yang's mouth, it was as if the money was deposited in a Japanese bank, and now he was using it to go shopping.

The sound of Chen Fan rapidly typing on a keyboard came from the other end of the phone, clearly indicating that he was checking accounts.

A few seconds later, he reported clearly and confidently: "Boss, the account currently has approximately 230 million US dollars in readily available Japanese yen cash. There are also some assets being processed and liquidated in an orderly manner, which can increase the quota by about 50 million US dollars in the short term. The total available Japanese yen funds are close to 300 million US dollars."

Three hundred million dollars!

Lu Yang quickly calculated in his mind. Wu Ying had just made a preliminary estimate that buying out a long-term license for the mainland market might require tens of millions of US dollars.

Even if the Japanese raise the price arbitrarily, or if they have a bigger appetite and want to buy global patents, this amount of money is more than enough, and may even only be a portion of the funds!

"Excellent!" Lu Yang's voice was filled with excitement. "This money is the ammunition we've prepared for 'achieving big results with little money'! Chen Fan, listen carefully, immediately get to work on three things!"

"Boss, what are your orders?" Chen Fan's voice immediately became serious and focused.

"First, use our network of contacts in Tokyo to immediately and secretly investigate all the core patents of the PHS technology, specifically which companies or individuals hold them, mainly NTT and DDI Pocket, and whether there are any other hidden holders. I need the most detailed list of patents, their current licensing status, and background information on the decision-makers of the holders."

"Second, assess the value of these patents, paying particular attention to their performance and expectations in the Japanese domestic market, as well as their views on the Chinese market, to understand their bottom line and possible negotiation strategies."

Remember, be quick and discreet!

We mustn't let them realize we're determined to win, and even more importantly, we mustn't let them associate this with the enormous future potential of the Chinese market!

"Third, prepare the negotiation team."

We are looking for top-tier international lawyers and negotiation experts who are familiar with Japanese business rules and intellectual property negotiations.

Once we finalize the details with Wu Ying and obtain the internal information he provides as supplementary information, you must immediately initiate the contact and negotiation process!

The goal is singular: to acquire a long-term, exclusive license for the mainland China market at the lowest possible price, the longer the better. If the price is right, we might even consider buying out global patents!

Lu Yang's instructions were clear and specific, revealing his determination to succeed and his meticulous planning.

"Understood, boss!" Chen Fan's reply was concise and powerful. "I'll get on it right away! I guarantee I'll get the situation figured out in the shortest time possible, prepare the negotiation team, and there's absolutely no problem with funding—three hundred million US dollars is ready at any time!"

"Okay, keep in touch, and report to me as soon as there's any progress." Lu Yang added as a final instruction: "I'm leaving things in Japan to you."

"Don't worry, boss!"

After hanging up the phone, Lu Yang carefully put away the satellite phone.

He stood on the reef, feeling the strong sea breeze blowing from the Pacific Ocean, and a surge of heroic passion welled up in his heart.

The unfinished buildings on Hailan Island still stand gray and desolate in the distance, but in his eyes, they are no longer a symbol of decay.

The beach beneath his feet seemed to have become the starting point of his new battlefield.

Wu Ying's appearance was like a key that unlocked a treasure trove worth billions, or even more.

Lu Yang intends to use that "unexpected fortune" he obtained in Japan to shatter the Japanese people's dream of making money while lying down, and firmly grasp the key to this enormous wealth in his own hands!

Little Smart (小理通)?
This is just the beginning.

The future truly belongs to the electronic information age. Wu Ying was right about that, and his prediction was very accurate.

Although the PHS (Personal Handyphone System) business could only operate for a maximum of ten years or so in China and would eventually be phased out due to technological gaps, using this as a springboard to build good relationships with the three major domestic telecommunications companies meant that their own subsidiaries might be able to expand into the telecommunications industry in the future. (End of Chapter)