Courtyard House: A Major Power's Heavy Industry, Hand-Crafted Nuclear Fusion
Chapter 124 The Patent Troll's Counterattack
Spring 1979, Hong Kong.
In the Peninsula Hotel's presidential suite, floor-to-ceiling windows offer a stunning view of Victoria Harbour at night.
Su Zheng stood by the window, dressed in a well-tailored, custom-made suit and holding a glass of red wine. Having shed his old military overcoat, he no longer looked like a technician from the desolate northwest, but rather a financial tycoon who was adept at navigating the capital markets.
"Mr. Su."
Behind them, a middle-aged man wearing gold-rimmed glasses respectfully reported, "The fish has taken the bait."
The middle-aged man is named Li Guohao, Hong Kong's most famous Chinese barrister and also Su Zheng's legal advisor for this "plan".
"How many restaurants have come?" Su Zheng asked casually, taking a sip of his drink.
"Three families."
Li Guohao held up three fingers, "Atari and MagnaVox from the United States, and... Nintendo from Japan. They formed a joint lawsuit and just filed a lawsuit in the Hong Kong High Court."
"What's the reason?"
"Patent infringement."
Brandon Lee placed a thick document on the table. "They accuse the 'Red Star Game Boy' of infringing on their patents for 'electronic video game devices,' 'mobile controllers,' and 'screen display technology.' They demand that we immediately cease sales and pay... one hundred million US dollars in damages."
"One hundred million US dollars."
Su Zheng laughed, but it was a cold laugh. "Quite an appetite. They see our Game Boy is selling so well and want to bleed us dry, while also ruining the Red Star Electronics brand."
"Mr. Su, the situation is not optimistic."
Li Guohao said worriedly, "The other party has hired the top-tier US law firm, Beebe & Co., which is unbeatable in the field of intellectual property rights. Moreover, Hong Kong follows the Anglo-American legal system, which has very strict patent protection. If we lose the case, not only will we have to pay compensation, but all our overseas channels will also be blocked."
"Lost the case?"
Su Zheng turned around, took out another stack of documents from his briefcase—that seemingly ordinary black leather bag—and threw it on the coffee table.
"Attorney Li, take a look at this."
Li Guohao picked up the document with a puzzled look.
His pupils contracted sharply after reading only the first page.
This is a patent registration certificate.
Place of registration: Panama.
Registration date: 1976.
Patent title: "An electronic control device based on a cross-shaped directional key".
Then came the second one.
Place of registration: United States.
Registration date: 1977.
Patent title: "A pluggable solid-state memory card and its interface standard".
The third one...
The fourth one...
How to Implement the "Pause" Function in Video Games
Sleep and Wake-up Mechanisms of Portable Electronic Devices
An Algorithm for Displaying Graphical Characters on a Bitmap Screen
……
A full fifty patent certificates!
Each registration predates the Game Boy's release by more than two years! Even earlier than similar products from Atari and Nintendo!
"this……"
Li Guohao's hands trembled. "Mr. Su, who owns these patents is...?"
He looked at the holder section of the certificate, which listed an offshore company he had never heard of before: Future Technology Co., Ltd.
"That was a shell company I registered overseas three years ago with my first earnings from exports."
Su Zheng sat back on the sofa, his eyes gleaming with a hunter's light. "Back then, I knew this day would come sooner or later. Westerners talk about the spirit of contracts? No, they only talk about 'who has the biggest fist.' And patents are that biggest fist."
He pointed to the pile of documents:
"They're suing me for copyright infringement? Great. We'll play along. We'll tell them I won't just refuse to pay, I'll also countersue."
Su Zheng's voice suddenly turned sharp:
"I'm suing Atari for using my 'removable cartridge' patent on their game console!"
"I'm suing Nintendo's Game & Watch for using my 'D-pad' patent!"
"I'm going to apply to the court for a 'temporary injunction' to prohibit them from selling any infringing products worldwide until the lawsuit is over!"
"One hundred million dollars? No."
Su Zheng stretched out one hand and clenched it into a fist:
"I want 500 million."
……
Three days later, at the Hong Kong High Court.
This was a hearing that attracted global attention.
The once-aggressive American legal team was now covered in sweat, their faces as pale as paper.
Just ten minutes earlier, when Li Guohao presented the fifty basic patents held by "Future Technology" in court, the entire courtroom fell into a deathly silence.
That was a decisive blow.
In the early, nascent days of video games, companies were busy vying for market share, and no one thought to patent those seemingly insignificant basic functions.
But Su Zheng had an idea.
Possessing the "Eye of Truth" and memories of the future, he is not only a transmitter of technology but also a rule-maker. Like a ghost traversing time and space, he has planted landmines in advance on all the necessary paths.
"I object! This is patent trolling!"
Atari's chief lawyer roared in exasperation, "This 'future technology' company has never produced any products! They're registering patents just to extort money!"
"Your Honor."
Su Zheng sat in the defendant's dock, not even standing up, merely adjusting his tie casually. "According to patent law, whether a patent holder has a product does not affect the validity of the patent. Besides, who says we don't have a product? The Red Star Game Boy is a legally produced product licensed by 'Future Technology'."
He stood up, his gaze sweeping over each person in the plaintiff's seat:
"On the contrary, it was you, Atari, whose 2600 console used my 'cassette interface technology' and made hundreds of millions of dollars in illegal profits."
"Nintendo, I've 'had the pleasure' of seeing the blueprints for your next-generation handheld console, and it seems you're also planning to use my 'D-pad'?"
Every word Su Zheng uttered was like a heavy hammer blow to the other party's heart.
"Now, I'm giving you two choices."
Su Zheng held up two fingers.
"First, continue the lawsuit. I have all the time. But I guarantee that for the three years leading up to the verdict, you won't sell a single product. I doubt your board will be happy with that outcome."
"second……"
Su Zheng smiled and took out a copy of the "Cross-Licensing and Settlement Agreement" that he had prepared beforehand from his pocket.
"Recognize the patent status of 'Red Star Electronics,' withdraw the lawsuit, and pay me a small... patent licensing fee."
"How much?" Atari's lawyer asked hoarsely.
"Not much," Su Zheng said casually. "For every machine sold, I get $5. Plus... a one-time compensation payment of $300 million."
"This is robbery!"
"No." Su Zheng shook his finger. "This is the law. The law that you Westerners are most proud of...
……
The settlement negotiations after the recess were less a negotiation and more a massacre.
Faced with the deadly threat of a "global sales ban," Atari and Nintendo had no choice but to back down.
Atari, in particular, is in the midst of its peak sales season for the 2600 console; if it were banned from sale, the company would go bankrupt.
Ultimately, an agreement was reached.
The $300 million settlement, along with a ten-year patent cross-licensing agreement.
Red Star Electronics not only cleared itself of the "infringement" charge, but also became the "hidden emperor" of the global video game industry. From now on, for every game console sold in the world, a "protection fee" will have to be paid to Su Zheng.
This is the ultimate level of "patent troll"—taking other people's paths, leaving them with nowhere to go, and in the end, they still have to obediently pay the toll.
……
The night breeze in Victoria Harbour carried a slightly salty, fishy smell.
Su Zheng stood on the deck of the cruise ship, looking at a check in his hand.
That was the first payment of $50 million in compensation.
"Congratulations, Mr. Su."
Li Guohao walked over with two glasses of champagne, his eyes filled with awe. "This battle not only won the lawsuit, but also demonstrated the prestige of Chinese people in the international business world. After this victory, I'm afraid no one will dare to easily touch Red Star Electronics again."
"Triumph is earned through battle, not through talk."
Su Zheng accepted the champagne but didn't drink it. Instead, he poured it into the sea. "This glass is a toast to those national enterprises that they once bullied."
He turned around and looked north.
"The money's in. Now, it's time to get down to business."
"Serious business?" Li Guohao was taken aback. "Isn't this serious business?"
"This is just a way to make money."
Su Zheng smiled and said, "The real important thing is people."
He pulled a photograph out of his pocket.
The photo shows a young Chinese man working diligently in a Stanford University lab. He is wearing a white lab coat and black-rimmed glasses, and his eyes gleam with fervor.
"Huang Renxun?" Li Guohao glanced at the name on the back of the photo. "I've never heard of that name before. Is he a student?"
"He's a student now, but later... he'll be a godfather."
Su Zheng put away the photos. "Of course, there's also Zhang Rujing, who was frustrated at Texas Instruments, and Zhang Zhongmou, who was considering whether to return to Taiwan or go to the mainland."
"I'm going to Silicon Valley."
Su Zheng straightened his collar. "This fifty million US dollars is my 'welcome gift' for them. I'm going to plant a red flag in the heart of Silicon Valley. Then... I'll move all the geniuses there, chairs and all, back to China!"
"But Mr. Su, the US is currently monitoring you very closely..."
"Therefore, I need a legal identity."
Su Zheng pointed at Li Guohao, "'Future Technology' needs a new CEO, an American of Chinese descent, and an investor with extensive experience on Wall Street. Attorney Li, are you interested in changing jobs?"
Li Guohao was stunned.
A moment later, he raised his glass, his eyes gleaming with ambition.
"It would be my great honor."
Spring of 1979.
A headhunting operation targeting Silicon Valley talent quietly began in the Hong Kong night.
Su Zheng knew that compared to lithography machines, compared to chips...
People are the core variable that allows China's semiconductor industry to leapfrog ahead...
……
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