Chapter 600: Sky-high fines
In April '89, the weather gradually warmed up, and the Northern Hemisphere entered spring. For Xinfei Electronics Company and Xinjia, it is a cold winter, and the monopoly of Xinfei Electronics has officially made a judgment.
On April 5th, for Xinfei Electronics, it is destined not to be calm. Antitrust investigations and lawsuits are not initiated by competitors, but by the U.S. government. Judge Jack of the Washington D.C. Court announced that it was determined that Xinfei Electronics used its patent and technological advantages to suppress competitors and prevent other companies from producing CD-ROM and VCD products, so the court announced that it would impose a fine of $1 billion on Xinfei Electronic Technology Co., Ltd., and force Xinfei Electronic Technology to allow other companies to purchase its CD-ROM and VCD patent licenses to produce related products, so that consumers have more choices.
In just two days, the ruling swept the world like a hurricane and made the front page of major media outlets.
As a monopoly oligopoly of cheap optical disk storage technology, Xinfei Electronics has been in full swing in recent years, and its VCD and D-ROM have almost become the standard configuration of major types of computers, even if it is a PC compatible machine, CD-ROM is also used on a large scale.
After all, mainstream hard drives now only have a capacity of about 256MB, which is simply not enough to store a full movie. A VCD disc can also be played on a CD-ROM computer, only by adding a VCD decoder chip. In addition, it is a 650MB disc, which can be installed in large-capacity games, so that users who cannot afford expensive hard drives can experience large-capacity games cheaply. In addition, a large amount of data is burned to a disc for storage, which is also a very cheap solution.
For the time being, you won't find a cheaper option for storing large amounts of data than a CD-ROM. Therefore, competitors cannot use technological competition to win, so they have to use a combination of judicial and political means.
After the results of the anti-monopoly investigation came out, although Xinfei Electronic Technology Company had to pay a huge fine, its stock price soared!
Because, the boots have landed, and many investors know that even if they need to pay a fine of $1 billion in the short term. Moreover, there will be more competitors in the future, but it does not affect the future of this company is very promising.
"Mr. Lin, this result is already the best result we have calculated. The final announcement, the fine, and the verdict were awarded. The damage is the least of the kind, avoiding the threat of the sword of Damocles hanging high because the antitrust law has not been punished!" said William Zhang.
"Well, I know!" Lin Qi disagreed.
……
After the verdict was announced, Attorney General Pitt said: "This is a victory for the US judicial system, and any enterprise doing business in the United States must abide by US laws, and this is the bottom line, and Xinfei Electronic Technology is no exception! We have a warning and punishment for the fine of $1 billion, and the strength will not let it go bankrupt." At the same time, we will supervise Xinfei Electronic Technology Co., Ltd. to license more companies in the United States and other countries to produce CD-ROM and other products...... In our program, we will not allow such an absolute monopoly oligarchy to appear!"
This is also the consistent ugly face of the US government, flaunting all kinds of politically correct banners, but in fact, it is for its own interests.
For example, the later attack on Iraq and so on dragged the Middle Eastern countries into the quagmire of war, essentially in order to consolidate the economic hegemony of the US petrodollar, and the military-industrial interest groups to gain a lot of benefits from it. And it's not just the United States itself that pays the bill, but its allies and other countries that pay protection money.
Now, according to the U.S. judicial ruling, Xinfei Electronics cannot refuse other companies to produce VCD and CD-ROM related products on the basis of fair royalties.
The day after the verdict was announced, the entire newspaper was almost overwhelming, and the American people, who were not very interested in monopoly, were forced to accept the popularization of the anti-monopoly law for a while.
American newspapers have no discipline and no bottom line, and have used words such as "great happiness" and "law upholds justice" to report on them many times. It's as if the U.S. government is really a warrior who has defeated the evil dragon for the sake of justice.
In response to the overwhelming reports, Xinfei Electronic Technology Co., Ltd. also reacted quickly and held a press conference, Lin Qi personally stood on the platform and made public relations to the media:
"Since its establishment, Xinfei Electronic Technology Co., Ltd. has been a company that has provided consumers with innovative products with high price and high technology content with scientific and technological innovation. We have never thought about any kind of monopoly, and the fact of monopoly existed before, but it was not the goal we actively pursued, simply because our patents and technologies are unique, and we protect our own interests according to the legal framework related to international patents. But with the popularity of VCDs and CD-ROMs, a huge consumer market has been formed, which has exceeded the scope of a small market that one company should monopolize. Therefore, we recognize the US ruling, and the $1 billion fine, Xinfei Electronic Technology Co., Ltd., has already remitted money to the account designated by the US government through HSBC, Standard Chartered, Citigroup and other banking channels, and now the procedures have been completed. In addition, we have also authorized Sony and Panasonic to produce related products. Of course, other companies with the production capacity and the ability to pay royalties are also welcome to produce CD-ROMs and VCDs. ”
Lin Qi has a good public image, and consumers all over the world have a good impression of him because of his people-friendly cost performance.
Therefore, this explanation quickly made consumers in the United States and around the world sympathize with Lin Qi!
People invest so much capital in research and development, and the products developed must of course be registered for patents and protected by patent law. And the popularity of the product in the world is not their fault, but the product is really good, and it is just needed by consumption.
Now, the U.S. government is only paving the way for other interest groups to enter the market!
"What did Mr. Lin do wrong? Shouldn't he register a patent for an invention product?"
"Shouldn't patent law protect inventors?"
"There are a bunch of big companies in the United States that have monopoly technology patents, right? Why don't you take them out and share them and license them to other companies?"
"Hey, I hope Xinfei Electronic Technology Co., Ltd. will not increase prices in the future because of the decline in market share. ”
"How ugly!"
Essentially, consumers don't care if a business is a monopoly or not. They will only judge whether it is good for them based on the price. In fact, the monopoly of Xinfei Technology does not harm consumers, but only those commercial competitors who covet the CD-ROM market......
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