Reinventing the Millennium

A preliminary hearing on Yike's appeal before the Ninth Circuit Court of Appeals lasted nearly a day.

It was not until 4:30 in the afternoon that Fang Zhuo got up from his seat, and stopped when he saw Cadiz, one of the three judges, walking over with a serious look.

Cadiz came closer and warned in a serious tone: "Mr. Fang, I must remind you again that unilateral phone recordings cannot be used as evidence in California. Once the other party files a lawsuit, they may be severely fined!"

Fang Zhuo asked solemnly: "How much is the punishment?"

"A heavy fine of $2,500!" Caddis announced the figure.

"Okay, thank you Judge Ange. Thank you for reminding me of your professionalism after the trial. I will give you a professional blessing later." Fang Zhuo nodded solemnly.

Caddis didn't understand the second half of the sentence, but guessed the meaning of the joke and laughed.

Fang Zhuo also smiled: "Ange, I just want everyone to know my attitude towards Qualcomm and Jacobs. We have always discussed with each other as much as possible. I don't have to come this time, but I still come. I hope It can convey the truest goal of Yike, and we don’t want Qualcomm to follow Nokia’s old path again.”

Caddis nodded slightly and took two steps to the side.

Fang Zhuo understood and followed suit, staying away from everyone's ears.

"Mr. Fang, no matter what kind of verdict we give, Qualcomm will not be convinced." Caddis said seriously, "This will definitely require multiple appeals and trials, and it may be a Prestonettes Inc. v. Coty A case of trademark infringement."

Prestonettes Inc. v. Coty is a 1926 U.S. case involving the infringement of product packaging design patents, which provided a reference for subsequent related cases.

This time Yike’s appeal, including the previous subject in the district court, is not about whether Yike infringed Qualcomm’s patents, but whether Qualcomm violated its FRAND commitments.

Once Qualcomm loses the lawsuit, it may provide support for subsequent related cases.

Fang Zhuo smiled and said: "We are patient. I don't want it to become a benchmark case. If so, Microsoft and Motorola may be more meaningful."

Microsoft and Motorola filed lawsuits against each other in 2010 over FRAND commitments, and they have now signed multi-year cross-licensing agreements.

Kadis just shook his head. The two situations are still different. In terms of products and influence, Yike's involvement with Qualcomm this time may be the latter's pricing power in the global market, while Yike also killed ED and FSD. The scope of application of these two principles.

Therefore, it is almost 100% necessary to go to the Supreme Court.

The Supreme Court receives thousands of petitions for certiorari every year, but only chooses to hear a small number of them. Once there, the decision becomes final and binding on the entire United States.

Microsoft and Motorola, although involved in FRAND commitments, have never reached the Supreme Court.

As for the final outcome, Cadiz is not sure. On the one hand, Qualcomm's monopolistic behavior has indeed triggered antitrust investigations around the world. On the other hand, Qualcomm is a local company after all.

So, I still have to check it out.

Caddis chatted a few more words about the case, and finally said with a smile: "Mr. Fang, since you are here, wait until you have time to play and see if your golf has improved."

"Hey, I really have no talent for this, but Kong Yu is very good. Let him ask you for advice when the time comes." Fang Zhuo said.

Caddis's eyes lit up and he readily agreed.

Fang Zhuo was in a pretty good mood after finishing his exchange with his fellow golfer, the judge. In fact, nothing could be seen in this day's court hearing, but Cadiz's tendency was still quite obvious.

In fact, regardless of local protectionism, geopolitical factors, and various reasons, he feels that Qualcomm’s monopoly is relatively easy to identify. Both himself and the legal staff gave many straightforward examples. , which is also an important consideration in litigation.

However, those things cannot be left behind, so the bright future has to go through a tortuous route.

Fang Zhuo left the court, briefly chatted with the company's legal team about today's performance, and immediately took a private plane back to Houston to catch up with Yao Ming's retirement ceremony tomorrow.

The appeal here in San Francisco is not a day's work, and even if there is some interest, the final result is not certain. According to legal terms, it is very likely to be retried, and it will still require a lot of back and forth.

Fang Zhuo expressed his patience about this. In addition, Kong Yu has not returned to the United States since he came to the United States with Chen Fuyang. He has also made some preparations accordingly, but it is still unclear how effective it will be.

Just before the private plane took off, some scattered news about Qualcomm and Avago was reviewed by Fang Zhuo again, but there was nothing of much value.

It's nothing more than some mutual criticism.

However, when the "Qingzi" arrived in Houston late at night, an important piece of information finally emerged.

Avago is said to be considering raising its offer.

It is said that Qualcomm has applied to CFIUS, the Committee on Foreign Investment in the United States, to intervene.

CFIUS has always played a bad role in some foreign capital acquisition cases. Although Avago has announced its relocation plan, it is still a Singapore-registered company until the relocation starts in the fourth quarter. This has legitimate reasons for intervention.

Fang Zhuo thinks this matter is very interesting. He wonders if the promoters behind Avago such as KKR and Silver Lake Capital can come up with more effective lobbying.

He was still thinking about Qualcomm's response, but Chen Fuyang, the head of Avago, made a call.

"Mr. Fang, I heard that you have arrived in the United States. I wanted to go to Houston as soon as possible, but many media are staring at me." Chen Fuyang's attitude was very polite.

How can I put it...

It can only be said that the last time I took a peek at the interest network weaved by Mr. Fang and Mr. Kong, it was indeed quite scary, and it can also explain many things about Yike, including the development of Bingxin.

If we are not afraid of speculating on this interest group with the worst possible malice, the previous injunction that Nokia successfully obtained against Yike was overturned, and the people in the white house have quite an outline.

Chen Fuyang was not afraid, so now he is afraid.

"You are busy with your business. I am here to observe Avago's acquisition of Qualcomm up close." Fang Zhuo said with a smile, "Avago's momentum is quite strong. Many media hope that you will go bankrupt tomorrow."

Qualcomm is hailed as one of the models of innovation and technological leadership in the United States. For such a company to encounter a hostile takeover by a foreign company, one can imagine the public opinion.

"Well, there is still a lot of resistance. CFIUS has already called me. I have told them repeatedly about the relocation, but their tone is still quite..." Chen Fuyang paused, "I think they are quite resistant, that's all I can say. , Mr. Fang, it is quite difficult for Qualcomm to refuse the acquisition in this way. I wonder if the antitrust side can exert more pressure?"

He made a request and wanted to use China's antitrust knife.

Fang Zhuo laughed dumbly: "You really want to acquire Qualcomm?"

"If the acquisition can really happen, it will be a good result. I think the direct rejection of Qualcomm's board of directors this time did not cause much reaction from shareholders. I hope Qualcomm shareholders can recognize the reality more clearly." Chen Fuyang said seriously.

Qualcomm shareholders are obviously still immersed in the past glory of hundreds of billions, and believe that US$70 billion is only temporary. This sentiment has brought great resistance to Avago's acquisition.

Even if Yike, a customer, also stops purchasing products after Apple, there is an expectation that Yike's competition will only suppress the rebound trend of Qualcomm's stock price and cannot continue to push it downward.

China's anti-monopoly, on the other hand, can release more pressure to help lower Qualcomm's stock price and shareholder sentiment.

But Fang Zhuo refused after just a second: "Mr. Chen, do you really think I am the director? Can I just do whatever I want? The preliminary antitrust investigation results have been accelerated, and there is no way to make any further changes in a short time." Moreover, if we really rush to suppress Qualcomm’s stock price, it will be difficult to stop this move, but there will be no room for it.”

If it's too light, it's useless; if it's too heavy, it can't be collected; if it's too heavy, it won't have much effect.

"Mr. Fang, if Qualcomm's stock price is suppressed, you can really give it a try. Silver Lake is already communicating with CFIUS and we can speed up the relocation plan. Avago's main company assets, personnel and operations are originally in the United States." Chen Fuyang is still fighting for it.

"Don't think about it." Fang Zhuo gave the decision directly, but after pondering for a few seconds, he said, "However, when it comes to antitrust, if Qualcomm wants to increase its size and market value through acquisitions, China can also use similar effects. measure."

Chen Fuyang's just disappointed heart was raised again. His mind turned a few times and he asked: "Mr. Fang, what do you mean?"

"Anyone who has frequently taken over hostile takeovers knows that there are only a few ways to acquire targets." Fang Zhuo said patiently, "If your offer continues to increase, some shareholders may be tempted. In order to avoid being controlled, Qualcomm's board of directors can acquire another company." If a company comes to increase its scale and market value, then your price will naturally become less attractive."

Originally, Qualcomm's price was 7, and Avago's price was 8. Qualcomm temporarily acquired a third company and merged it into 9. So, 8 became a low price and would naturally not be accepted by shareholders.

Chen Fuyang naturally knows this and will wait for the next chapter.

Fang Zhuo introduced a situation very smoothly: "According to China's Anti-Monopoly Law, there is a situation where a concentration of operators has been declared. As long as the total global turnover exceeds 10 billion Hua Xia Yuan, the two companies were in the same situation last year. If Huaxia’s domestic turnover exceeds 400 million Huaxia coins, then their mergers and acquisitions need to be approved by Huaxia.”

If Qualcomm wants to increase its market value, this declaration condition will almost certainly be touched, and there will naturally be an opportunity to intervene.

Chen Fuyang understood the meaning instantly. He was surprised, then happy, and finally said: "Mr. Fang, that's great!"

As long as this happens, one of Qualcomm's important counterattack methods will be abolished.

"It's just in accordance with the law and regulations, just like CFIUS's investigation of you is also in accordance with the law and regulations." Fang Zhuo was very calm.

Chen Fuyang felt that he really had to learn more from Mr. Fang and increase his legal literacy.

He humbly talked about lobbying Qualcomm shareholders, but this was still a bit far away. Currently, it was Avago's hostile takeover of Qualcomm, so it didn't go too far.

It was already early in the morning when the phone call ended.

Fang Zhuo was sitting on the edge of the swimming pool wearing big underpants. He waved to the secretary on the other side and motioned for him to take his mobile phone to charge.

When Liu Zonghong came over with a fully charged mobile phone, he heard a long sigh from his boss.

"Mr. Fang, it's time to sleep." Liu Zonghong reminded.

"I'm not sleepy at all. It's not that hot at night." Fang Zhuo kicked the water in the swimming pool and said with a smile, "Mr. Chen from Anhua Gao should not be underestimated."

Liu Zonghong concentrated.

Fang Zhuo briefly talked about the request from Mr. Chen to borrow a knife.

Liu Zonghong didn't realize anything was wrong. Chen Fuyang wanted to lower Qualcomm's stock price. Isn't this normal?

"It's too urgent, it's too urgent." Fang Zhuo said simply, "The antitrust knife is hanging over Qualcomm's head, but I'm afraid Chen Fuyang also regards it as hanging over his head. He is now If you want this knife to fall, if you really take charge of Qualcomm in the future, it will all be a rebound."

The results of the antitrust investigation have not been released. If everything goes well for Chen Fuyang, he will still have to face this issue when he becomes CEO. It will still be more difficult and he will still be constrained. Now that the results are released, on the one hand, it will lower Qualcomm's stock price and on the other hand, it will eliminate hidden dangers.

Liu Zonghong was stunned, then Mr. Chen...did he think that far?

Fang Zhuo seemed to know what his secretary was thinking, and said with a smile: "He is 'little Fang Zhuo' after all."

Liu Zonghong was relieved, not afraid of the worst malice... That's right.

But the boss took advantage of the situation and had a better way to handle it.

When he thought about it, he suddenly said: "You can't really let Avago acquire it, can you?"

"It's the same for us. There is a difference between a company that focuses on the communications field and a company that has a comprehensive business. As long as there is a new management, integration is bound to be done, otherwise it will be easy to cause big problems." Fang Zhuo said with a smile, "Globally The market competition is so fierce. A company that can grow bigger through mergers and acquisitions may not be able to become stronger. Once it is not strong, it will become a burden, and everyone still has to invest a lot of energy."

He lowered his head and glanced at the stirred pool water, and said casually: "The fact that Avago has reached this level of merger and acquisition is a manifestation of the intensified competition in the industry and the trend of industrial mergers and acquisitions integration. Whether Avago swallows Qualcomm, Qualcomm swallows Anhua No matter how high it is, we may be able to find a rival for the new Qualcomm to prevent it from being too strong."

Liu Zonghong controlled his anxiety and asked: "Who are you looking for?"

Fang Zhuo smiled and said nothing. There were only a few companies in the market, but they were definitely paying attention to the acquisitions of Avago and Qualcomm. In addition, Yike had already made a breakthrough in the field of baseband chips...

By sharing technology with Apple, Yike has strengthened the antitrust alliance to a certain extent, and it is not stingy in finding new partners.

Intel.

Bingxin has a good relationship with it recently and has friendly technical exchanges. Intel has been ready to make moves in the baseband field for a long time. It has provided products to Samsung before, but Samsung had to switch to Qualcomm because of its mobile phone chips, giving Intel a disguised blow.

Now it depends on what kind of changes Qualcomm can inspire, what countermeasures it will give, and whether the new Qualcomm can finally take shape.

The day the new Qualcomm takes shape is when the rivals that drive it emerge. (End of chapter)