The so-called technology licensing is to collect protection fees from them, and it is a steady stream.
Sony was previously in the field of Walkman, and was charged royalties by some patents developed by Tiangong Electronics, resulting in Sony having to pay Tiangong Electronics Group six US dollars in royalties for every Walkman produced and sold.
That time, Sony regarded it as a disgrace. During an internal meeting, a proposal to increase investment in technological research and development was passed, in order to accumulate a greater technological advantage and avoid being bled again by the competitor Tiangong Electronics Group.
This time, the CD laser disc technology was also established within the company, in order to create a CD walkman and open up a new market.
If we agree to this, won't we be like last time, being bled dry by Tiangong Electronics Group? Working for Tiangong Electronics Group?
So before coming here, Sony had already analysed the pros and cons within the company. This time, the nature of Tiangong Electronics Group's unique technology is different from last time. Tiangong Electronics Group has not directly pushed the technology to the market, has not occupied a favourable market position, and the technology is not unassailable.
Therefore, Sony and Philips reached an agreement to join forces to force Tiangong Electronics Group to give in this time. Paying royalties was out of the question. They were prepared to fight, not believing that Tiangong Electronics, a company established only a few years ago, could fight them and the old order.
Of course, it would be best if they didn't have to fight. After all, direct confrontation would require a high cost, which would affect the CD-DA standard alliance that they jointly ruled, and there were also uncertain risks.
In their plan, the best case would be to directly purchase the patents held by the Tiangong Electronics Group.
If that doesn't work, they will conduct a patent swap. With the technical expertise of Philips and Sony, they have an absolute advantage over the Tiangong Electronics Group in terms of the number of patented technologies in various fields, and only a small portion is needed.
Now Fok Kin-ning has proposed a patent swap, but Matsumoto Nozomu and Dembs Jerry exchanged glances and instantly reached an agreement.
They continued to fight for the initiative in the negotiations, and even if they had to exchange technologies, they would exchange lower-grade technologies as much as possible.
Dempsey Jerry continued to play the white face and said with a stern face, 'President Fok, it is impossible to pay royalties. As I said earlier, some of the technologies owned by Tiangong Electronics Group are not irreplaceable. Our company and Sony have also carried out related research and development, but Tiangong Electronics Group is just a little luckier and has achieved results first.'
'Philips has a large enough research system, and as long as it invests enough money, it can completely take a different path.'
'President Fok, if you were me, would you choose to give the money to another company? Or invest the money in research and development to obtain a batch of exclusive technologies?'
Fok Kin-ning was not on the right track. He smiled easily and said, 'If it were me, I would definitely choose to pay royalties and use the technology as soon as possible. Wouldn't it be good to bring the product to market and make a profit? After making money, you can go on to research and develop the next generation of technology.'
Dempsey Jerry was suddenly at a loss for words, a little embarrassed, his face darkened, and he looked at Fok Kin-ning with great dissatisfaction, saying angrily:
"Mr Fok, is this the attitude you should have towards a partner?'
Fok Kin-ning glanced at Dempsey Jerry and said with an inexplicable expression on his face: 'Tiangong Electronics has both cooperation and competition with Philips. My attitude depends on what attitude Philips brings to the table, doesn't it?'
Dempsey Jerry's eyebrows suddenly stood on end with anger.
It was clear that his role as the villain had backfired, and instead, it had only boosted Fok Kin-ning's momentum.
Matsumoto Nozomu saw that things were not going well, and quickly stepped forward to smooth things over.
'President Jerry, please calm down,'
he said, before looking at Fok Kin-ning again and saying discontentedly, 'President Fok, we have come here with sincerity. We have always been partners.'
'There is an old Chinese saying: 'Isn't it a joy to have friends come from afar! We came to discuss cooperation with you, and as the host, even if you don't give a warm welcome, you shouldn't sneer at us, should you?'
'This is not in line with your image or status, and if it gets out, it could also bring shame on the Chinese people.'
Matsumoto Nozomu's move was to take away the problem while also praising, and he even gave Huo Jianning a high hat.
This made Huo Jianning look highly of him.
Good guy, it turns out that the islanders have some research on Chinese culture, and the level of this display made him take it seriously.
Originally, he also wanted to cooperate, and since Matsumoto Nozomu played the field and gave him face and a way out, he also slightly restrained his sharpness.
Instead of going to see Demps Jerry, he smiled and said to Matsumoto Nozomu, 'President Matsumoto, this attitude of yours is more like the attitude of someone who wants to cooperate.'
'Since you've put it that way, I'll give you face too.'
'Let me be blunt. The Red Book CD-DA standard for CD-ROMs is outdated and has great limitations in the face of the CD-ROM format we are currently developing.'
'Tiangong Electronics intends to take the lead in establishing a new standard for data discs. If Sony is willing to join, we would be very happy to welcome you, and we are more than willing to share our technology.'
'However, we have invested huge costs in developing these technologies. If Sony wants to use them, they can either pay a technology usage fee or exchange the technology we need.'
Tiangong Electronics' real intention was to establish a new industry standard?
This is going to subvert the order established by Sony and Philips!
They want to become the martial arts overlord!
After Fok Kin-ning revealed the real intention, Matsumoto Nozomu and Dembs Jerry were greatly shocked.
At this moment, they had no more interest in arguing about royalties or technology exchange.
Tiangong Electronics Group was going to rebel against them and subvert their industry dominance, how could they allow that?
If they were to establish an industry standard, it should be Sony and Philips, not Tiangong Electronics Group.
The Tiangong Electronics Group is already extremely threatening. Its biggest shortcoming is that it was only established a few years ago and has very weak foundations. If the Tiangong Electronics Group is allowed to really establish itself as a standard-setter, then Sony and Philips will face even greater competitive pressure in the future.
There is only one piece of cake, and it is enough for Sony and Philips to share it. The Tiangong Electronics Group cannot be allowed to take the cake, nor can it be allowed to become the third person to cut the cake!
Without even communicating, Matsumoto Nozomu and Demps Jerry were in complete agreement.
Dempsey Jerry said stubbornly, 'President Huo, the CD-DA standard has only been established for two years and is still able to adapt to the current data disc field. At most, it can be optimised on this basis. Currently, we are already in the process of standard optimisation internally, and I believe it won't be long before you receive an invitation.'
Matsumoto Nozomu nodded in agreement and said, 'That's right, Tiangong Electronics Group will definitely be notified then.'
'Of course, this will take some time, and we will notify you after internal discussions.'
'As for the technology that Tiangong Electronics Group currently possesses, well... I personally have a sincere suggestion: Tiangong Electronics Group can conduct a patent swap with our company, Sony, and Philips. Of course, in return, we will include some of Tiangong Electronics Group's technology in the scope of the standard optimisation expansion, and existing standard members who want to use the relevant technology will need to pay a technology usage fee.'
'Of course, we will also do our best to promote it. For the long-term development of the standard alliance, the alliance management committee will take a reasonable share.'
'But overall, Tiangong Electronics Group can make enough profit with these technologies.'
Hearing Matsumoto Nozomu's righteous words, Huo Jianning almost laughed in anger.
According to Matsumoto Nozomu's suggestion, the standard would still be jointly dominated by Sony and Philips, and this standard alliance would be equivalent to a platform. Tiangong Electronics Group, because of its technological advantages, could put the technology on the platform, and Philips and Sony could conduct technical exchanges and try it out for free. Other members would pay a technology usage fee, but after paying the technology usage fee, a portion would have to be divided and given to Sony and Philips as 'platform usage fees and promotion fees'.
In the final analysis, although Tiangong Electronics has a higher status than other members and can indeed make a lot of money using the technology, it is essentially still working for Philips and Sony.
It's like the Taobao platform and the Taobao shop owner. Sony and Philips are the owners of the Taobao platform, and Tiangong Electronics Group is the Taobao shop owner. The difference is that Tiangong Electronics Group's shop has been directly upgraded by the background by several stars.
Yes, it seems that Matsumoto Nozomu has indeed taken a step back.
But!
Tiangong Electronics Group still has not become a shareholder or even an operator of the platform!
This is not what Tiangong Electronics wants!
In order to become the creator of the second-generation data disc standard, Chairman Xia Yudu has invested so much capital to pave the way for Tiangong Electronics Group, how can he let the chairman down?
Therefore, Fok Kin-ning also didn't bother to talk nonsense with Matsumoto Nozomu and Dembs Jerry, and said directly, 'Two of you, our Tiangong Electronics Group will definitely establish the new standard. If Sony and Philips join late or don't join at all, the loss will definitely be yours.'
'I can tell you directly that no matter if anyone joins or not, we will definitely put these technologies on the market.'
'We welcome all companies in the world to join, and we are also confident to compete with all companies!'
'Including Sony and Philips!'
These words were spoken with a resounding and imposing tone, and the determination in the deep gaze caused Matsumoto Nozomu and Dembs Jerry to change colour.
Matsumoto Nozomu became anxious.
However, his mind remained clear.
He quickly said, 'President Huo, Tiangong Electronics Group's technology has not yet reached the point of being able to be launched on the market. Launching it on the market now will only cause chaos in the CD market, which is extremely detrimental to the development of the industry.'
Dempsey Jerry added, 'President Fok, immature technology that is promoted to the market will be difficult to gain the support of related companies.'
'The vinyl market has a very large industrial chain. Record companies are all vested interests in the vinyl industry. The technology of CD technology has its own characteristics, but in the case of chaotic standards, there will definitely be no support from record companies.'
'I can guarantee that PolyGram International Limited will definitely not rashly invest hundreds of millions of dollars to support Tiangong Electronics Group's immature technology!'
Mochizuki Nozomu also said, 'Columbia Records will also not support it.'
Fok Kin-ning's eyes narrowed slightly as he looked at the two people with firm gazes, Dengpu Jerry and Mochizuki Nozomu, who even carried a hint of warning. A smile suddenly appeared on his face.
It was this unexpected smile that made Mochizuki Nozomu and Dengpu Jerry's hearts suddenly jump.
'Are you threatening me?'