Reinventing the Millennium

"What the hell?"

"Are we competing maliciously?"

"This Virginia is weird."

Fang Zhuo was sitting in a conference room in New York, holding the product sales ban issued by Virginia, and was extremely surprised.

The conference room was full, with legal affairs, lawyers, and senior executives gathered together.

Yu Hong looked very sad and said depressedly: "Virginia's ban has taken effect, and our products are gradually being removed from the shelves."

Fang Zhuo thought for a while and found that Virginia was not a key area for Yike M1 and P1, but this ban that directly removed the products from the shelves was a very bad start.

He glanced at everyone in the conference room and waved his hand, indicating that the scheduled meeting was temporarily postponed.

After a while, only marketing director Yu Hong and the Cadwalader law firm team who were invited were left in the conference room.

Fang Zhuo wanted to listen to the opinions of professionals. He politely asked Martin, a lawyer who had good cooperation with him during the acquisition of Sina: "Why does Virginia ban our products?"

Martin said nothing and motioned to the younger lawyer next to him to explain for him.

"The sales ban came from the state court in Virginia. Apple sued Yike for malicious competition, including but not limited to iMusic, M1, and P1's actions that disrupted market order and unfair competition."

“The provisions adopted by state courts are primarily the Clayton Act.”

"Mr. Fang, one of the meanings of the Clayton Act is to prevent harm, which is to act in a manner that reasonably foresees that you may harm competition. Even if there is no harm yet, it is still illegal."

“In addition, considering that models M1 and P1 are subsidized by exports from China, it directly imposes price discrimination on buyers of the same grade and quality goods in Virginia, hindering normal competition.”

The young lawyer explained in a familiar manner.

Fang Zhuo listened carefully throughout the lecture, but his mind was still a little confused. He couldn't help but ask: "Two questions, prevent damage? Is it illegal even if there is no damage? Who defines this behavior?"

"Also, I sell things cheaply. Is this price discrimination against buyers? Do they deserve to buy expensive ones?"

The young lawyer shrugged: "The definition of behavior comes from professionals. As for who the state court considers to be professional, it is worth examining."

Barrister Martin next to him cheerfully said in Chinese: "Fang, to facilitate your understanding, I remember that there is a word in China called 'unnecessary'. You can also understand that for the sake of long-term interests, current competitive behavior must be stopped. We We must protect those short-sighted people.”

Fang Zhuo rolled his eyes. This sounded like there was a lot of room for maneuver.

“We believe that the Trial courts in Virginia have problems with this ban and can appeal to the Appellate courts. At that time, at least three judges can participate in the review and make a ruling on the ban.”

"Fang, don't worry. There is a high probability that this ban will be overturned. We are confident."

Barrister Martin said easily.

Fang Zhuo pointed out the problem: "Martin, how long will this process last? We are now competing with Apple for customers. When the ban is lifted, will the market in this state have been occupied by Apple?"

Martin asked strangely: "Your product prices are very competitive. Unless Apple cuts prices significantly, and your software users will not change their phones in the short term, the impact of this ban should be limited."

Fang Zhuo and Yu Hong looked at each other.

That's the problem.

Yike's contact with the music copyright company has been kept secret, but it is hard to say whether the music company is willing to keep it secret.

If only one company is okay and there are competitors, music companies will definitely be happy to see higher bids.

Speaking of Virginia alone, if Apple completes music licensing first and attracts users to use more convenient and cheaper music download services, it may form a moat and usage inertia in a short period of time.

The method of competition will not come one by one. A multi-pronged approach using various other means may be a complete and beautiful market counterattack.

"We have a very important business cooperation in the future, and this ban may have extremely negative negative effects." Fang Zhuo said euphemistically.

Martin understood and said seriously: "Apple is trading time for space."

"So, we need to lift this ban as soon as possible, and we must also prevent other states from following such malicious methods." Fang Zhuo expressed his attitude.

Martin got serious. This was not easy to handle. Appeals take time, as do trials and rulings. Competitors are not seeking a simple ban, and it can easily affect the schedule.

He quickly discussed countermeasures with his team.

After a long time, the discussion gradually died down.

Fang Zhuo and Yu Hong stopped communicating when they saw this.

Martin held up three fingers.

"Three methods?" Fang Zhuo was ready to listen.

Martin nodded: "One, three hundred thousand dollars, two, two hundred thousand dollars, three, one hundred thousand dollars."

Yu Hong: "..."

Fang Zhuo understood that these were attorney fees for different plans.

The average annual income of lawyers in the United States is about 100,000 yuan, and the asking price is already quite high.

The previous Sina acquisition case was a long-term cooperation with the Cadwalader law firm, and they paid 150,000 in legal fees alone, plus various business trip expenses.

Now with this quote, the additional expenses added up are quite staggering.

Fang Zhuo's expression did not change and he motioned to the lawyer to explain the difference.

"For one hundred thousand dollars, we are considering appealing to lift the sales ban in Virginia as soon as possible."

"Two hundred thousand dollars, we believe that simply starting from the Clayton Act is not enough. Although state courts and federal courts have no affiliation, the Supreme Court of the federal courts draws from tens of thousands of case applications every year. Eighty cases are tried, which is a legal interpretation based on precedents.”

"This case not only involves Virginia, but also has many products sold in other states, and you are coming from overseas. I think it can be used as a model."

"As for the three hundred thousand dollars, Fang, I have taken into account the actual situation of your company. Whether it is appeal ruling or case operation, there may be some uncertainty at this time."

Martin's face was full of sincerity: "Since Apple has taken this approach in Virginia, we can also find areas where we can influence and accuse the other party of unfair competition."

"This kind of complaint does not necessarily lead to an injunction. It can be used to negotiate and settle with Apple, so that you can still compete in the market."

"In addition, considering the nature of Yike Company, in order to ensure the effect, we may have to seek public support from state legislators during the contact process."

“This support includes, but is not limited to, providing jobs, political donations, etc.”

Martin finished speaking in one breath, waiting for Fang Zhuo's decision.

Three hundred thousand dollars is just a small amount, and expenses such as providing jobs far exceed legal fees.

Yu Hong, who was standing next to her, frowned and said, "From the inexplicable damage prevention in the Clayton Act to the various requirements, is this really not blackmail?"

Martin smiled: "Yu, this is not blackmail, this is reciprocity."

"After this, the money we earned will be returned to us?" Yu Hong said.

"No, no, no, for example, to provide jobs, you can first reach an agreement with the state government. The specific start of construction and whether to start construction will depend on the situation." Martin said slowly, "As long as the goal is achieved in a short time, you can weigh the long-term impact. We can make up for it later.”

He added: "This will have faster results. State legislators only need to protect the interests of local voters. We can even quickly apply for a counter-injunction on the grounds that Apple's unfair competition has hindered the cooperation between Yike and the state government." .”

Fang Zhuo spoke: "Martin, you also know the situation of our company. I trust you and the Cadwalader Law Firm very much. I still hope to reduce the additional costs as much as possible during this 300,000 yuan process."

Martin said naturally: "That's for sure. Our lawyers will not let you spend money and suffer more losses."

"Then I will hold another meeting to discuss it. After all, the company does not belong to me alone. I will give you an answer tomorrow at the latest." Fang Zhuo continued, "You first go to the Virginia Court of Appeals to appeal. This is what must be done. .”

"No problem." Martin stood up with the lawyers. He shook hands with Fang Zhuo, "I hope Yike can solve this problem smoothly."

"Me too."

Fang Zhuo sent the lawyers out.

When he returned to the conference room, he immediately told Yu Hong: "Xiao Yu, please contact other law firms to see if there is a better solution."

"...Yeah." Yu Hong nodded and went to the office to contact him.

Fang Zhuo did not wait for her results, but directly held a meeting to hear the company's internal evaluation of the Virginia ban, and learned more details.

Apple is very dissatisfied with the delays experienced in its previous acquisition of Yike, and believes that Yike's behavior during this period of vigorously seizing the market and announcing the collapse of the acquisition is extremely despicable.

Then came Virginia’s rather sudden ban.

Currently, large channels including Wal-Mart and Kroger are enforcing the state court's injunction, while other small channels have not taken any action for the time being.

Online Amazon is not affected, and the use of iMusic is not affected.

The goal of this ban is likely to be to compete for the market in the field of music copyright, and it is not ruled out that Apple will continue to follow suit in other states.

The atmosphere in the conference room was quite intense, and everyone was denouncing Apple's unconventional competitive methods.

Fang Zhuo let the group of people release their emotions for a while and knocked on the table: "Don't think too much about what happened. The important thing is how to deal with it."

"What's the difference between routine and irregularity? If the company doesn't survive this time, it will at most be included in a business competition case for comment in a few years."

"Don't be too pessimistic. Our best market is in New York, in New York state."

"Why didn't Apple choose New York state? Why didn't it attack our best market?"

"It shows that their influence also has scope."

Fang Zhuo was extremely calm and said: "I have negotiated with the law firm on the legal level and will launch a tit-for-tat counterattack. Your current task is to ensure the stability of our market."

He expressed his opinion: "Why is Apple doing this? This shows that they cannot provide higher competitiveness purely from market competition."

"The better our market is, the more anxious Apple will be."

"The more urgent Apple is, the more we at Yike will bring high-quality and low-priced products to the American people."

Facts have proven that the American people are also very concerned about the price factor of products. When products of the same quality and function are put together, they vote with their wallets.

Yike wants to benefit the simple American people and let them enjoy high-quality and low-priced products and services.

This is also the essence of the "Made in China" concept that is gradually appearing in major stores in the United States.

The excitement in the conference room was calmed down a lot.

As the saying goes, if a soldier is raging, a general will be raging in a nest.

The boss was so calm, which significantly affected the mood of the employees. The ban from Virginia was bad news, but it was not the worst news.

The most important thing is that Yike has money in his account, and has raised US$24 million from five institutions, which can dispatch lawyers, mobilize legislators, and mobilize the courts.

The emotions of Yike's overseas team were calmed down, and the work content was divided and arranged in an orderly manner.

When Yu Hong came back, there were only a few people left in the conference room.

"Xiao Yu, how are you?" Fang Zhuo asked.

"The person I contacted was also a well-known law firm, and the price was higher. The method didn't sound as detailed and reliable as what Martin and the others said." Yu Hong replied.

Fang Zhuo nodded, then there is no need to compare.

He motioned to the marketing director to sit down and continue the meeting.

"I don't think there is any doubt. Apple must be here for music copyright."

"Moreover, Virginia has not banned the use of iMusic. We must reach copyright cooperation as soon as possible to fundamentally defeat Apple's intentions."

Fang Zhuo thought about it and said: "This step is a closed leap from hardware profitability to software profitability. It is nothing more than Apple's plan to do this. The so-called breakdown of negotiations before was just a cover-up."

"They are probably stepping up discussions on copyright cooperation."

All the senior executives in the conference room nodded and agreed with this judgment.

Regarding the company's cooperation in music copyright, although it is a bit difficult to discuss, progress is also slowly advancing.

Yike mainly contacted two music copyright agencies.

One is ASCAP, which stands for American Society of Composers, Authors and Publishers and is the largest copyright fee management organization in the United States.

The other one is SESAC, which stands for European Drama Writers and Composers Society. Although its name is European, it is actually an American organization and its artists are relatively famous.

"It was Mr. Fang who personally took the initiative to promote the negotiations. Although the progress is currently advancing, there are still differences on many matters." Jackson, a local American executive, said.

"Well, I'm here to promote this matter." Fang Zhuo didn't care whether he was jet lagged or not, "Let's make an appointment with people from ASCAP tomorrow, and tonight you can study the small details that can be compromised."

"Now it's time to go fast, fast, fast, do you understand?"

Fang Zhuo raised his voice and glanced at Yike Overseas’ senior management.

"clear!"

A firm voice sounded in the conference room, and the panic atmosphere cleared.