Chapter 737 Scouber's ambition

"At the beginning of the year, I strongly suggested to the company's board of directors to set up an investment company in China to develop its business in China. Unfortunately, few people can clearly see the brilliant future of the Chinese market. They have sharpened their heads and just wanted to make a name for themselves in Europe and the United States," Emer and Zhang Ke squeezed into a car. As soon as the convoy started to drive towards the city, he couldn't wait to complain, "If one-third of Kumho's speed could be achieved, it wouldn't be delayed until today that they decided to set up an investment company to be responsible for their business in China..."

Listening to Emmo's loud complaining in the car, Zhang Ke smiled slightly, and did not know how he was pretentious in his words, nor did he know how he calculated the "one-third of the speed" he said. However, his seemingly straightforward personality would be very likable, which is often an effective means for him to lower his negotiating opponent's psychological defense.

"SGP wants to set up an investment company in China?" Zhang Ke said in surprise. "SGP's SVCD decoding chip sold to domestic disc machine manufacturers is hard-working by agents. The so-called technical support work is also very easy. Is it necessary to set up a company?"

"..." Emme pointed at Zhang Ke and smiled, "You are gloating and hope that we will never get out of the way of thinking of professional competition?"

"Which two market environments, two operating models, which one is better or worse, can we say it is a stubborn one?" Zhang Ke said frankly, "Of course, we are happy to see Scooper's decision to set up an investment company in China and expand its business in China..."

The management of Scooper was slow before. It was not that they did not pay attention to the markets in China and the vast emerging regions, but that Scooper's management positioned Scooper as a supplier of digital video chips and technology solutions. His previous business in China was as Zhang Ke said, just an office-level office-level agency was competent.

Zhang Ke is not very clear about Scope's development trajectory in history. Since Scope decided to set up an investment company in China and expand its business scope in China, this is different from the general operational thinking of professional competition among European and American companies.

Scope's technology in digital video chips is comparable to TI. At this level, Kumho is hardly helpful to Scopepe. Since others cannot ask for it, the possibility of getting benefits from others is naturally very small.

Scope has expanded its business scope and is interested in entering new business areas. This is naturally Zhang Ke is willing to see the changes, which means that Kumho can carry out closer cooperation with Scopepe in a broader field.

The cold wind outside the car window was cold, and Zhang Ke waited for Emmo to continue talking, but Emmo stopped talking.

Zhang Ke waited for a while but didn't see Aimo speak. He looked at him and saw that the corners of his mouth were smiling and holding his posture. It was really ridiculous. He said, "Sgaobo chose this opportunity to establish an investment company in China. I guess he made a breakthrough in DVD codecs, right?"

"..." Emmer opened his mouth and said in surprise, "It shouldn't be possible that my expression would reveal so much information. How could you guess the point at once?"

"If you weren't here to wink and pretend to be a ghost, I wouldn't have thought about that..." Zhang Ke said with a smile.

On the established historical trajectory, Scooper has always been one of the world's most important suppliers of video decoding chips. The applications of its video decoding chips include a series of video playback devices such as VCD, SVCD, DVD, and digital TV. It should be a matter of time before Scooper solves the technical difficulties of DVD codecs; on the other hand, for Scooper, the most likely thing that allows them to take the initiative to find Kumho is to cooperate on DVD players.

Zhang Ke guessed it casually, and Emer naturally stopped making a fool of himself and told him directly: "Now no company claims to own all the patented technologies of DVD discs, and in the end they can only cross-licens the relevant patented technologies. Many related patented technologies have not passed the patent confidentiality period of 18 months, so they are not clear about the distribution of the final patent technology. We have made some breakthroughs in codecs, and I believe that Tete Optoelectronics Research Institute has also achieved certain achievements in movements. Of course, compared with Philips, Sony and other companies in DVD disc research and development and possible achievements, both of our companies are very inferior. If our two companies cannot join forces and negotiate cross-licensing and authorization with other companies, they will be suppressed, and they may be excluded from the final DVD product market..."

"..." Zhang Ke opened his mouth. He didn't expect that Scooper Company wanted to directly enter the terminal product market and no longer meet the role of its digital video chip supplier. Otherwise, they only need to master the patented technology in codecs, and they do not need to cross-authorize with other electronic manufacturers.

Zhang Ke pondered for a moment and said, "I don't hide it from you. Tait has indeed obtained some patented technology in the movement, but Tait Optoelectronics Technology Research Institute is a joint venture between Jinho and Deyi, each holding half of the shares. Why haven't you had contacted Deyi in this area before? You have been on the same plane with Mr. Delfassi for so long, and you didn't think about communicating with him first?"

Emmer said: "Deyi has no interest in entering the terminal consumer market. I think as long as it does not harm Deyi's interests, Deyi will be willing to let Kumho lead the operation direction of the Tate Optoelectronics Technology Research Institute; on the other hand, many applications and software patented technologies of Kumho in SVCD discs can also be applied to DVD discs. Since we want to unite, we naturally hope that the more chips the better..."

Zhang Kejing thought about it and developed according to the established historical trajectory. The DVD Patent Technology Alliance will not be officially established until mid-1999. Before that, all DVD patent technology manufacturers were in their own lineups. Among the many electronic manufacturers that own DVD patent technology, Kumho and Scooper started late and were at a certain disadvantage in terms of the number of patented technologies and key patent technologies. Joining together first is a wise move to reverse their weak position.

This time, Emmo and his group were invited to Jianye. In addition to adjusting the cooperation mode with Deyi and Scooper on the SVCD decoding chip, it was mainly about seeking cooperation between the three parties on the MP3 digital audio player. Unexpectedly, Emmo took the initiative to mention related cooperation on DVD players as soon as he arrived in Jianye, which was an unexpected gain.

It takes half an hour to arrive at the Hilton Hotel in Donghuamen. After arriving at the hotel, we prepare to have a meal.

After flying in the air for more than ten hours, Delfasci and Emmer and their group had not reversed the jet lag. They were very tired. After dinner, they had a simple conversation in the hotel room and arranged for them to enter the room to rest.

The Hilton Hotel is the main venue for this business meeting. During this period, Chen Xinsheng, Ding Huai, Xiao Jincheng and others also checked in the Hilton Hotel. It was still early, and Zhang Ke, Chen Xinsheng, Ding Huai, and Xiao Jincheng all gathered in Chen Xinsheng's room to discuss things. Zhang Ke told them about Emmo's intention to cooperate on the way back to the city from the flying field.

"Sgaobo also wants to directly produce disc machines and enter the terminal market?" Ding Huai said.

"They also know that other companies have made breakthroughs in DVD encoding and decoding technology, and they are no longer the only ones, so it is impossible to replicate their huge profit model in the decoding chip market at this time. Entering the final product market is also a forced effort to avoid a decline in performance..." Chen Xinsheng thought for a little while, he could roughly infer Scope's business intentions.

Xiao Jincheng said: "Since SGB wants to enter the terminal consumer market, their future market advantages should be in Europe and the United States. Can we use SGB to introduce MP3 players into the European and American markets, and disassemble the product technology of MP3 players and authorize them to use it?"

According to the international antitrust convention, the abuse of patent rights is prohibited and compulsory licensing is required. Patented technology must be authorized to third parties to avoid a company using patent technology to monopolize the market.

If Kumho wants to participate in global competition, it must abide by the game plan. Before the MP3 player is officially launched on the market, it must first authorize the relevant patented technology to a third party for use. The authorization time is delayed, the better. At least when Kumho launches the MP3 player to the market, there will be no competitors. The choice of authorization objects is also very particular. You must exchange patented technology for patented technology as much as possible during the authorization process - it is a small number of licensing fees, and it is also necessary to prevent the other party from becoming their own direct competitors.

This is also the first time that Kumho is involved in overseas markets. No matter which company is authorized to, the company will become a direct competitor of Kumho. When authorizing a company with weak strength, it is necessary to consider that this company will easily merge with other large companies.

After hearing Xiao Jincheng's suggestion, Zhang Ke nodded after hearing this and said, "Our early target is markets in developed Asian regions such as Japan, South Korea, Singapore, and Taiwan. The European and American markets are where we are currently unable to do so. It is not a good choice to give the European and American markets at this time to Scooper for development..."
Chapter completed!