When The Little Tyrant was still developing the Learning Machine, they discovered that there was already a similar product in the market and it was advertising on CCTV. It was Aiwa that had introduced this product.
All of them had never expected Aiwa, who had been manufacturing Walkman, would produce Learning Machines!
They immediately purchased a few units from the market and dismantled them. This was faster than developing the product themselves. Soon, Duan Yongping extracted the technologies in the Learning Machine.
Duan Yongping excitedly reported to his leaders that they had successfully developed their new product. The cost was also less than 1,300 RMB. Although Aiwa Learning Machine was already in the market, he was not worried.
When he started to manufacturing video game consoles, there were also similar products in the market. But in the end, The Little Tyrant had beaten all their competitors.
This Learning Machine will also be the same. You are selling at 3,000 RMB because it is an imported product. The importation taxes and transportation were a fixed cost and could not be lowered. The Little Tyrant was different. Their cost was lower and could set the retail price as 2,000 RMB per unit.
The Little Tyrant had won all its competitors through price war in the past. Although Aiwa was a big brand, The Little Tyrant’s brand was also popular, especially in the southern region.
The leaders were glad that the new product was finally ready. The research funds had not gone to waste. Duan Yongping had promised them that The Little Tyrant’s learning machine will quickly occupy the market. Even though Aiwa was advertising on CCTV, The Little Tyrant also had advertising contracts with CCTV.
Aiwa’s commercial was about to entice the parents to purchase their Learning Machine for their children, but Duan Yongping also had an excellent idea for his ads. Children’s song. A song that could be remembered easily by children. When they were playing, they could sing this song. This would be very effective.
Now, Duan Yongping needs funds for marketing. They can get the local TV stations to air their commercials, and they had established sales channels. It would not be a problem for them to grab the market share from Aiwa!
The leader nodded and agreed with Duan Yongping. He gave Duan Yongping a sum of money for marketing. He was looking forward to the Little Tyrant’s Learning Machine to become famous throughout China and the annual profit to be over 100 million!
After getting the funds, Duan Yongping immediately ordered the factory to manufacture the Learning Machine at full capacity. They can stop the production for their consoles. The foreign video game consoles had already entered China, and they have more interesting games. He wants The Little Tyrant to slowly move away from the video game industry. He needs the consumer to think that the Little Tyrant was a company that manufactures Learning Machines.
But when he went to the Trade and Industry Bureau, he found out that his product cannot be named as Learning Machine!
Duan Yongping was puzzled. Why can’t his product be named as Learning Machine?
The staff at the Trade and Industry Bureau told him that “Learning Machine” was registered by Tai Hua Trading as their trademark and had authorized Hong Kong Aiwa Co. to use this name. The Little Tyrant was not authorized, and if he uses it, it would be a breach. Their product would be considered counterfeit merchandise!
Duan Yongping had never expected the product he was developing for so long was already registered. But this did not stop him. You called your product Learning Machine, then I will call my product Super Learning Machine. The Little Tyrant Super Learning Machine sounds superior to Aiwa Learning Machine. When the parents heard this name, they would surely buy his product!
After leaving the Trade and Industry Bureau, Duan Yongping suddenly remembered about the patents. Did the Learning Machine register their technologies?
After some inquiries, it was really as what he had thought. The few technologies in the Learning Machine were registered. If the Little Tyrant were to use those technologies, they needed the authorization from Aiwa Japan!
Duan Yongping listlessly returns to the company. He had asked his staff to develop this product, but now, they cannot manufacture it. How can he even make 100 million?
Duan Yongping will not get the shares of the company from the City. He might even be taken to task! He knew that the leader in the City had been unhappy with him, but the leader does not have an excuse to deal with him. Now, he had presented this excuse to the Leader personally!
The factory had purchased the materials and had started manufacturing the Learning Machine. Duan Yongping had also contacted all his distributors to get ready for his products next month.
But now, he cannot sell this product. This was patent infringement! He could argue with Japan’s video game companies, and the Chinese government will still support him.
But what if both parties were Chinese companies? Which side will the Government take? Aiwa was more powerful than them, and Tai Hua Trading was still a company that had won a national level award!
If both companies were to get involved in a lawsuit, he would surely lose. His product will even be branded as a counterfeit product. As the General Manager, he might also be put behind bars!
The City’s Leader was still dreaming about the Little Tyrant’s Learning Machine. This would be his credit, and he will be promoted!
But Duan Yongping told him that the Little Tyrant cannot manufacture the Learning Machine suddenly.
This was shocking news. The Leader was shocked. Why can’t the product be manufactured? Didn’t this product was successfully developed? You had told me that the production lines were changed, and we can produce the product at full capacity.
Infringement. We had infringed Aiwa’s patent and their trademark. The Leader could settle the trademark infringement easily, but it was impossible for the patents. Unless the Little Tyrant could get the authorization from Aiwa!
But how was this possible? Aiwa’s Learning Machine had no competitors, and this product was new to the market. No one in the right mind would authorize someone else their patents.
The Leader was furious!
You need funds, I had given you funds. I had supported you in everything you do, and now you are telling me that we can’t sell this product?
“How much funds have you taken from the City? What did you promise me at the start? Now, how am I going to answer the higher-ups? Answer me!”
“I will take full responsibility for this matter!” Duan Yongping lowered his head. If he did not take full responsibility, then someone else in the company got to take the blame. He believed that with his ability, even if he was fired, he could still get a high paying job. He might even start his own business.
But what would happen to someone else if he was sacked? After all, he was the one who had given the orders to start this new product. There was no way he could push the blame to someone else.
“You will take full responsibility? How are you going to take responsibility? A few million is spent on developing this new product and what about the distributors? We have already collected over 10 million RMB from the distributors, and according to the contract, we have to compensate them double! That is more than 20 million! You think everything will be solved just by you telling me that you will take full responsibility?!”
Duan Yongping realized that his decision had cost The Little Tyrant more than 20 million! Even if he resigns, this will not be settled.
“Continue to produce and send the goods to the distributors according to the contract. This is the only solution!” The Leader thought for a while and said.
Duan Yongping was shocked. This was illegal. He will be the one taking the blame, and he will go to jail!
“No. I do not agree. The Little Tyrant will be finished. We should compensate the distributors. With The Little Tyrant around, there is still hope. The money we lost can still earn back. If we carry on manufacturing counterfeit products, The Little Tyrant will really be gone!”
