Rebirth: Super Banking System
Chapter 557 - 464 Patent Bully (Seeking Subscription!)_1

Chapter 557: Chapter 464 Patent Bully (Seeking Subscription!)_1

Keqi and Mu You.

Along with the last Huaxia person who won the qualification at the auction -- Zeng Ming and their corresponding secretaries, all followed the staff to the assembly plant. Along the way, with the roar of the factories along the route and watching the tall factory buildings and the vehicles transporting raw materials or finished products, the three of them visiting for the first time all had looks of astonishment on their faces.

Without witnessing it with their own eyes, who would believe, within a few short months, the place completed preliminary industrialization, people extracted themselves from chaos and unrest, accomplished unity, adopted a system, obtained an economy, established industries, secured a currency, gained a sense of security, and achieved a...future.

It’s simply a miracle.

The semi-militarized management of the assembly factory was thus arrived at.

At this moment.

The assembly plant is yet to be operational because the equipment would be fully debugged in a couple of days. After the improvement of equipment and procedures, there have been summarizations in the integration of many parts, which reduced many manual errors affecting the precision, quality, and assembly speed of electronic products, markedly increasing the output of the entire assembly factory.

If three shifts are operated, the daily output can reach fifteen thousand mobile phones or MP4s. However, this territory isn’t planning on doing so because initial orders certainly won’t be as many, so it will operate at most two shifts.

Moreover, this involves many complex matters, such as -- patents. If some patents cannot be circumvented, then there’s no choice but to expect future lawsuits or adopt the same licensed technology in exchange.

As for paying patent fees?

That depends on whether you have the ability to do so. Domestic patents are easy to negotiate, the patent fees can be given. As for foreign patents, it depends on the mood.

For those patents that can be circumvented, Tang Qing already commanded those scientists to rapidly develop them and even established a company specifically to register patents in various countries. After all, in the future, this territory will inevitably lean towards being legalized, professional, and standardized.

The interests will inevitably collide with big corporations. What he could think of was to be ’dishonest’ in dealing with major patent bullies during the initial phase, under conditions where research and development is ’backward’, time is short, and patents are not yet permitted.

This is honestly a move made out of helplessness. It’s not that Tang Qing truly wants to act this dishonestly, but because the conflicts are simply irreconcilable. He can produce the most advanced products of others without buying from them, and it would be weird if they’re not enraged by this.

Since they’re enemies.

Then there’s nothing to talk about, not to mention giving them money.

But eventually, it will have to grow into an enormous technological tree.

Only it can sue others, and nobody could sue it.

This is the technological development plan within this territory.

As for now, compromises need to be made because too many things cannot be managed. It doesn’t matter who it concerns, those who dare can try to create trouble and see who hurts more. When my technological barriers are established and I set the standard, that will be my time to turn the tables.

By that time.

They can keep their patents and play with them for their amusement, and I’ll see if they’re stupefied.

"May I ask when this can start operating?" Staring at the assembly factory which is deserted like a kitten, Keqi asked the staff who accompanied him. This is a company absolutely controlled by the Myanmar Bank, hence there isn’t any higher-up personnel around to receive them, only two staff members and two soldiers for accompaniment.

"Mr. Keqi, at the latest it can start operating in three days, as equipment adjustments have been made during this period." The staff member answered.

"I see, will the MP4s be assembled here as well?" Keqi asked again.

The staff member nodded, saying, "Yes, all electronic devices are assembled here for final assembly, while the parts are processed in another factory. Due to certain reasons, Keqi is the distributor of the demonstrated cell phone in Thailand, so the other two gentlemen are requested not to sell this product in Thailand. As for your own designed products, they are not subject to any restrictions and can be sold wherever you like.

"Meanwhile, our production allocation is based on the orders, each person has a one-third quota of total production, ensuring the supply of goods. If a sufficient quota is not submitted, the production of other people’s products will be prioritized."

Having listened to the introduction.

The few of them nodded, signaling their understanding.

Although the staff member’s explanation was slightly complex.

Upon thinking more carefully, it became very understandable.

For instance, if the daily output for the cellphone is ten thousand, it amounts to three hundred thousand units per month, hence each person has a monthly quota of a hundred thousand units. This is an upper limit, it can be guaranteed under any circumstance, but if you have not used up this quota in the given month, it will be made available to others for free. This is fairly ’fair’, it seems to urge you to quickly place an order.

"What is the procedure for proxy production?" Mu You continued to ask, the staff member’s meaning was rather clear just now, which was to encourage their own designs which can be sold freely.

"If you want to have proxy production, first, you need to submit your project plan, consisting of product appearance, functionality parameter requirements, etc., and pass them to our company’s design department for review. If there are technical problems, we will communicate with you, and it won’t take more than three days.

After the technical aspects are settled, we will discuss the supply price with you. At the same time, because any new product requires a modification in the production line, you also need to provide a fee between fifty to a hundred thousand USD." The staff member explained.

"That expensive?" Mu You exclaimed.

Keqi, who had long known about this price, laughed and said, "Mu You, what’s expensive about this? They have to modify the production line and help you solve technical difficulties. You only need to provide some parameter requirements and appearances, and the rest has nothing to do with you. This truly isn’t considered expensive."

"Well... I was just blurting it out." Keqi’s underlying meaning was: you country bumpkin, this is already a rock-bottom price, alright. Mu You couldn’t possibly have not understood this. Absolutely can’t admit it’s expensive."

"Hello, I have a question about your patent technology of these things..." Zeng Ming asked another question.

"The designs you provide, you register for the patents yourselves, and the technology solutions we provide, we apply for the patents ourselves." The staff explained with a smile.

"So, are you saying we can only apply for patents for things like appearances?" Zeng Ming got to the point.

"Strictly speaking, that’s right."

Zeng Ming didn’t ask any more questions. He gave up his wild dream of owning the technological patents. It had nothing to do with them, after all. With nothing to provide other than appearances and performance parameters, the only patent they could register for was the design patent.

Keqi and Mu You were somewhat disappointed after hearing the staff’s explanation.

A design patent.

It’s hardly worth a dime.

"Can I place an order now?" Zeng Ming was no longer fussing over the details.

"Yes, this way, please."

The group moved to the factory’s reception room.

As soon as he sat down, Zeng Ming was the first to speak: "I’ll pass on the phone for now and have someone design a new one when I get back. I want to place an initial order for twenty thousand of these MP4s for export to my country, is that okay?" The buying and selling of cellphones isn’t that easy, especially domestically, where all kinds of permits can be a hassle. Unlike Keqi, he has the ability to sort out all the procedural documentation in Thailand, and he’s been given a full month to prepare.

Zeng Ming wasn’t as bold. He could only start by selling MP4s first, working it out when he gets back, or finding a few partners to operate together. He was not going to give up the mobile phone market.

The MP4 is more loosely regulated, so he could make a profit first. Anyway, the qualification lasts for three years, he was confident that he would recover his investment within the first year.

The staff was extremely excited about this first order. This was performance! Although he wasn’t getting a commission, it represented that money was being made in the factory, which secure his job. He happily said:

"Yes, Mr. Zeng Ming, this is the contract. You need to pay a 10% down payment first, and we only promise to deliver to our turf. You need to handle the rest of the transportation yourself. Once you have paid the qualification fee and the down payment, this contract will take effect immediately, and we will immediately arrange production."

Zeng Ming glanced over the contract, it was in Chinese characters, and only three pages, easy to read.

"Alright."

After ensuring there were no errors, Zeng Ming quickly signed the contract. Two copies of each.

’When can I get the goods?’ Zeng Ming looked up and asked.

"Ten days later, you can receive the goods you want. Do you have any other requirements, like company logos, packaging, and so forth?" The staff asked again.

"I’ll have someone design it as soon as I get back, and give it to you within two days at the latest." Zeng Ming said. This was easy to handle; just alter some other designs and it would be good to use. This is why the designers have this ’inheritance’ attribute, always looking vaguely familiar, it’s called imitation, not plagiarism.

"Alright."

With one business deal concluded, Keqi and Mu You couldn’t hold back either and began to place orders and discuss details, and negotiate delivery times.

Soon.

The contracts were signed.

The three men were not stingy villains. They promptly paid the corresponding fees, of course, and they all paid in Thai Baht. With such large amounts, they naturally used transfer payments. Within half an hour, huge sums of money were deposited into a bank account in Thailand. This was one of the foreign currency settlement accounts of the territory. However, a significant portion of this money was used to pay for the cost of raw material procurement shortly after it had been received.

A lot of people who had obtained the qualification to supply raw materials completed the payment of the qualification purchase fee, and many of them received advance payments that exceeded the qualification fee, which reassured them. They spread the word to each other, faces full of joy.

The procurement within the territory was fair, and this was one of the reasons why the raw material suppliers were so eager. Once the qualification was gained, a 10% advance payment would be received for the total purchase amount of the first month.

After the goods arrive and the quality checks out, at the end of the month, you’ll get the full payment for the goods delivered before the 27th.

This approach, is already very generous. In other places, not only are the payment terms long, but there’s no down payment at all. Therefore, the merchants who received money rushed back to arrange for goods and transportation. If others are doing things so generously, would you be able to drag your feet and not feel bad about it?

Just like that.

The second investment promotion conference in the territory was completed.

The primary establishment of a supply and marketing system has been established. Although it’s still immature and has many places that can even be said to be ’loopholes’, it’s also a big step forward.

PS: Chapter 2, Chapter 3 will be released around eleven o’clock.

Don’t mind the details.