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Chapter 207 Patent Gold(1/2)

Frankie is already a Chinese, not that accessible, but as far as the Chinese people have low threshold requirements, they can say "Hello" and "Happy New Year". Frankie who can use chopsticks is a magical foreigner.

And when he ate the 40th dumpling, the cheers could have broken the roof.

Even Comrade Yang Feng smiled and said to Yang Rui: "This foreigner is not bad."

"Just because he can eat dumplings?" Yang Rui couldn't think of the reason why Frankie appeared, and his mood was always not calm enough.

Yang Feng laughed twice, looked at his son who had been quite calm recently and said with interest: "What are you worried about?"

"I don't know what he is here to do." Yang Rui let out a sigh of relief. After several months of hard work, he received a share of shares and 800,000 US dollars. Yang Rui didn't want to make more trouble.

Yang's father said: "I think it's a good thing."

"Why?"

"I think he has worked very hard with chopsticks. If it is a bad thing, he doesn't need to do this." Yang Feng's answer came to the nail on the head.

Yang Rui suddenly realized and smiled and said, "I am worthy of being the secretary of the commune."

Compared with the position of the township party committee secretary, Comrade Yang Feng obviously missed the feeling of the commune secretary more, and he immediately burst into laughter.

Frankie stopped chopsticks in laughter, patted her stomach and said, "I can't eat it anymore."

"I haven't eaten the stuffed Chinese cabbage yet." Rui's mom was so polite.

"I'm already full."

"Come on another one and try it."

"Okay." The fat man could always add another 30% capacity to his stuffed stomach. Franky was embarrassed to pick up another big dumpling, took a bite, and chewed happily.

"The Yang family's mother's dumplings are really good, and she also put a lot of meat." The wife of the neighbor Director Wang sincerely praised them.

Rui's mother couldn't stop smiling. Being able to buy meat is a compliment. Every day like the Spring Festival and Mid-Autumn Festival, it is the time when relatives of the meat-in-meat factory show their faces.

"It's delicious, it's too full." The dumplings that Frankie ate were like small buns, which was his big stomach that could hold more than 40.

Rui's mother asked with concern: "Does it taste too weird?"

"No, I like dumplings, Italian tomatoes, Japanese tomatoes, and Chinese tomatoes, all of which are delicious." When Frankie spoke, he had to put down the chopsticks with the translation of the dumplings next to him, and it was also full of stuffing.

The visitors were strange: "There are dumplings in Italy and Japan?"

"Yes, the taste is different, and the method is different. Put meat, onions, cheese, etc. in the dough. After pressing, cut it with a knife. Japanese dumplings are very similar to Chinese dumplings..." When it comes to food, Frankie talks endlessly, and the more hard-working translation is the translation.

As one question ended, the visitors asked more questions.

Yang Rui watched coldly and finally confirmed that Franky shouldn't be here to find fault.

Otherwise, there is no need to be so pleased.

But from another perspective, maybe it’s just a matter of breaking the contract, so I have to please in advance?

Yang Rui couldn't help but feel curiosity in his heart. When Frank finally ate sauerkraut dumplings and his resistance was zero, he saved him.

Franky looked bitter: "If you eat abroad, you will always encounter this situation."

"The foreigners I know usually eat in fixed places, and not many people as brave as you." Yang Rui handed him a glass of water to calm him down.

Even Chinese people, there are many people who cannot adapt to sauerkraut dumplings. Rui Mo specially made a few of them to let Frankie taste them.

At least, Yang Rui himself can't get used to it.

Frankie drank some water, rinsed off the smell in his mouth, shook his head and said, "I plan to be a foodie after retirement. Do you know? I have been to 48 countries, and two more, it will be 50 countries."

"Your passport is really useful." Yang Rui said sincerely.

Frankie laughed: "It is naturally useful in the Commonwealth countries. Other places, whether it is a passport or a factory building, require more background and help."

"There is also a former colony." Yang Rui added a sentence to him in English.

The exhausted translation finally stopped.

Franky smiled bitterly again and said, "Yes, there are former colonies, but I want to say that our relationship with countries around the world is constantly improving."

"Maybe."

"We want to build a Coenzyme Q10 factory in more places." Frank finally explained the purpose of the trip.

Yang Rui frowned: "We have talked about this issue."

"I know, you refused, but I solemnly put it forward again, hoping that you can consider it carefully."

"Why?" Yang Rui asked.

Franky said in a panic: "There is no reason. We think a factory cannot meet the needs of Coenzyme Q10. Strategically, we need more factories."

"I'm at a loss when you engage in a price war. The increase in production capacity is meaningless to me." Yang Rui shook his head and didn't believe it.

As for the current global coenzyme q10 production capacity, adding another factory is far from saturation. Whether it is the Ruijie factory or the factory prepared by Jielikang Company to build itself, they are all first-generation factories with semi-chemical synthesis. The cost is greatly reduced compared with the organizational extraction method, but the production capacity is not certain. Even if the investment is nearly 10 million US dollars, the output will not exceed three times that of the Westjet factory, which means that one ton per year is a high data, and the global demand for coenzyme q10 is far more than ten tons.

However, no matter how high the market demand is, there is always a limit.

It doesn’t matter if you build two factories in one go, three or four, five or six, and there will always be a breakdown.

Once the situation of supply and demand changes, the worst thing is naturally the Japanese factory that currently occupies a market position, but the Westjet factory and the Ruijie factory that have not been put into production will also suffer losses.

Yang Rui had rejected Jielikan for this before, and Franky made this request again, which made Yang Rui extremely curious.

This is the rhythm of climbing onto the table even though he knows he is going to be slaughtered.

What makes them so confident?

Frankie was familiar with Yang Rui and did not take any care of her eyes. She just walked into the yard and said to Yang Rui who followed her: "We can compensate you in other ways."

"oh?"

"Patent Gold." Franky gritted his teeth and said the word.

The larger the factory, the more unwilling to pay patent funds, because patent funds are charged according to output, which is equivalent to increasing the cost of the product out of thin air and does not become a cost.

The most famous patent gold is the bottle of Coca-Cola. The glass bottle designed by someone signed a patent gold contract with Coca-Cola, so that Coca-Cola has to pay 1 cent for every bottle of this type of bottle. And because the glass bottle produced in this plan has become the main product, the designer actually received a reward of over 100 million US dollars, far exceeding the design fee itself.

The patented gold of Coenzyme q10 is naturally impossible to be 1 cent, and once Jielikan builds a large-scale factory, the output will not be small.

Yang Rui looked at Franky with a fool's eyes and asked, "How can you make this request?"

"Can't you mention it?" Frankie was confused. Could this be the festival custom of the Chinese people?

Yang Rui smiled: "It's normal for me to make this request."

Franky gave a breath and hurriedly said, "The patent amount is $500 per kilogram, and our plan this year is more than 5 tons."

Patent funds of US$500 per kilogram are equivalent to 5% of sales and 15% of profit, which is currently more refreshing than giving 15% of shares.

The production capacity of 5 tons is also very large. Jielikon will build at least three new factories equivalent to the size of Ruijie factory, and the total patent amount will reach a staggering $2.5 million. If they build more factories, they will inevitably pay more patent amounts.

Yang Rui didn't understand at all and asked, "What happened?"

Frankie was silent for a while and smiled bitterly: "There is news that the Japanese are preparing to renew the factory."

“What’s the update?”

"It is very likely that the route of semi-chemical synthesis is also."

"Impossible." Yang Rui was startled by his voice and whispered in a moment: "My technical distribution is very comprehensive. Even if they have technical reserves, they cannot break through the technical barriers in a short time."

"They did not break through your technical barriers." Frank was quite impressed by this. It was indeed not easy for a person to lay out a minefield that even several companies could not break through.

Yang Rui breathed a sigh of relief and asked, "Since there has been no breakthrough in the technical barriers, what are you afraid of?"

"I'm afraid they will produce it directly regardless of technical patents."

Yang Rui was slightly stunned.

Franky thought Yang Rui didn't understand and explained carefully: "The market monopoly position is the strategic goal of Japanese factories. Business groups that have lost their monopoly position are likely to be removed by the consortium that controls their destiny. Therefore, Japanese companies would rather violate patent laws and use new technologies to produce coenzyme q10..."

"Are they going to sue me?"

"If you sue them, yes, they are ready to drag the lawsuit and continue to produce until there is a ruling."

“But the ruling is slow?”

Frankie nodded.

Yang Rui sighed inwardly and finally got to this point. This is also a situation that all small and medium-sized biological companies may encounter. Large consortiums or large pharmaceutical companies ignore the patents of small companies and infringe on patents to make profits while suing them.

Patent lawsuits last for a long time, and some can last for seven or eight years, or even seventeen or eighteen years. The time is enough to make a patent worthless.

If you lose a lawsuit, you will have to lose money, but most of the time you lose much less money than they earn.

It can be said that consortiums and large pharmaceutical companies calculate the cost of lawsuits and the final compensation costs into the total cost.

In other words, they know that the lawsuit will lose, and they will infringe on patents as long as it is profitable.

Jielikan did not infringe on Yang Rui's patent. On the one hand, Yang Rui's asking price was not outrageous, and on the other hand, it was because they had not mastered the relevant technology yet.

Japanese companies are different. They cannot get patent authorization from Yang Rui anymore. On the other hand, the technology they reserve can allow them to quickly copy Yang Rui's technology.

In fact, Yang Rui’s technical barriers cannot be perfect. Companies that have been doing pre-research for a long time may have registered relevant patents, but they are not completely consistent with Yang Rui.

"It seems that the lawsuit can only be fought." Money is heroic. Yang Rui had 800,000 US dollars in his pocket. Although it was not enough to complete the lawsuit, he could always pay the early fees.

As long as he can survive the lawsuit, he will not be able to make all the profits, and he will always have a considerable amount of compensation, which is more cost-effective than shrinking his head.
To be continued...
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