The court outside Shenzhen City attracted reporters from all over the world.
Netac made this matter a big deal, and this year is another critical year for Xia Guo to enter the WTO. Therefore, domestic and foreign media are paying close attention to Xia Guo's strength in intellectual property protection.
In recent years, Xia Guo has filed very few intellectual property and patent complaints. Netac's lawsuit against Lingyue for patent infringement is the first major case in Xia Guo in recent years.
These Western media came to the Shenzhen Municipal Court for two purposes.
One is to report the latest news in a timely manner, and the other is to supervise law enforcement.
Judge Xiao Wang was very unhappy when he saw the reporters fighting each other.
He said to his colleagues: "Normally when we judge cases, the BBC and CNN don't come. Today is great, we are all alive!"
Xiao Wang had just started working not long ago. In addition, the bombing of Nanguo S Pavilion had just happened the year before last, so Xiao Wang had a natural aversion to Western countries.
Colleague Xiao Zhang sneered and said, "Isn't that right? They are the most interested in these things."
As a member of this trial, Xiao Wang has seen all the information provided by both Longke and Lingyue. From his own perspective, he actually has opinions on Longke.
First of all, Lingyue had previously sought to cooperate with Netac, but Netac refused.
Secondly, Netac can grant the right to use its flash memory patents to foreign companies, but it is quite strict with domestic companies.
That is to say, Sony, Samsung and other companies can use flash memory patents to produce MP3 and USB disks, why can't Xia Guo's Lingyue Company?
In Xiao Wang's view, Netac can stand firm from a legal perspective, but it certainly cannot stand from a moral point of view.
Chen Xiao sent Sun Dong to appear in court, and Sun Dong didn't need to make a statement because his lawyer would do everything for him.
Moreover, Chen Xiao and Wang Xiang had already anticipated the outcome of the verdict, so there was no need to spend more energy on it.
The most important thing in sending Sun Dong here this time is to win the support of ordinary public opinion and build up Ling Yue's reputation.
In order to achieve this goal, Sun Dong has to do two things.
The first thing is to publicize this principle to the media that with the development of computers, flash memory technology must be universally applied.
It is okay to charge patent fees, but it is unethical to rely on patent ownership to prohibit others from using the technology to develop technology.
The second thing is to seek reconciliation with Netac under the lens of the media.
Seeking reconciliation with Netac is not a true reconciliation, but an attitude expressed to the media to create the image of Lingyue as a private technology innovation enterprise in Xia State that still hopes to obtain a fairer development environment.
When it comes to winning media support, Chen Xiao considers Xia's media the most rather than Western media.
Because Lingyue's main consumer market is in Xia State, Chen Xiao has no need to please the Western media.
Moreover, the Western media has its own preferences.
Similar to BBC and CNN, when they report news, they do not report the true situation of the event from a fair and objective perspective, but with their own standpoint.
In the patent dispute between Netac and Lingyue, the Western media 100% supports Netac.
Because supporting Netac means supporting Western companies that can abuse intellectual property rights or patent ownership to control Xia's manufacturing industry and suppress the innovation capabilities of Xia's technology companies.
Since the case involved a transnational case, the trial was held behind closed doors.
The first court hearing is mainly for both parties to provide corresponding testimony and some evidence, and adjust them, hoping that the two parties can reach a settlement in court.
After the first court hearing, Sun Dong expressed some of Lingyue Company's handling methods in front of reporters.
Sun Dong said: "The patent for flash memory is quite special. It is a patent for a storage method, rather than a specialty in some professional field. With the development of computers, data will inevitably grow explosively... Flash memory is indispensable. A rare way to store..."
"Of course we respect Netac's patent ownership of this storage method, but we oppose using this ownership to suppress the innovation and development of other companies..."
"We hope to reach a relevant agreement with Netac, and we are willing to pay a certain amount of patent royalties."
Sun Dong's words were reported by a large number of domestic reporters and resonated with the domestic computer technology industry.
This will happen to Lingyue Company, and it will definitely happen to other technology companies.
Chen Xiao watched the live broadcast of the news and happily said to Wang Xiang: "I didn't expect that this boy Sun Dong is not shy at all in front of the camera."
Wang Xiang's mentality is not as good as Chen Xiao's. He is anxiously paying attention to the developments of the matter. He is very worried.
Deng Yun, CEO of Netac, was also in the Shenzhen city, and he was following the proceedings of the trial.
At present, it seems that both the evidence displayed on the scene and the attitude and statements of Lingyue Company are very beneficial to Netac.
Winning the lawsuit is almost a certainty.
At this time, the secretary quickly came over and said to Deng Yun: "Mr. Deng, after the first court hearing, Lingyue Company has expressed to our representatives that it hopes to settle out of court."
Deng Yun laughed loudly after hearing the news. In his opinion, this was Lingyue taking the initiative to seek peace.
Deng Yun asked with great interest: "There must be conditions for peace. What conditions did they offer?"
Deng Yun judged that Ling Yue might not be able to support it anymore.
Although Lingyue has relatively advanced lithium battery technology.
However, under the obstruction of Sony and other companies, negotiations between Changtian Technology, the parent company of Lingyue, and Motorola and other companies have stalled.
And Motorola is not a bad person. They will definitely use this opportunity to lower the purchase price of lithium batteries to Changtian Technology Lion.
At the same time, Sony is trying its best to persuade Motorola to return to the negotiating table.
With the current lithium battery production capacity of Changtian Technology, there is still a question mark whether Motorola will cooperate with Changtian Technology.
As a result, both Changtian Technology and its subsidiary Lingyue Company are under great financial pressure.
And if Netac wins this time, Lingyue's products will definitely not be able to continue to be sold, sales revenue will return to 0, the backlog of goods will increase, and turnover will stagnate. One can imagine the financial pressure on Lingyue.
In order to relieve Lingyue's financial pressure, it is normal for them to seek peace after the first court hearing.
Deng Yun is very interested in Lingyue's technology. He really wants to know why the same technology of flash memory and the same specifications of lithium batteries were used before. Why are Lingyue's products so thin?
"They expressed their willingness to pay a certain royalty fee."
Deng Yun said to his subordinates: "Let Vice President Li Jiang come over to talk. They don't need to raise conditions. We will raise the conditions here."
"Lingyue can use Netac's flash memory technology patents, but they have to pay some price."
"Netac is willing to take a step back and occupy 30% of Lingyue's shares through technology investment."