Reinventing the Millennium

On September 20, Yike officially appealed to a higher court against Virginia’s product sales ban.

Also on this day, Yike submitted a complaint against Apple for alleged unfair competition in the Supreme Court of New York City, New York.

At the same time, Cadwalader Law Firm took into account the key sales areas of Yike products and planned to initiate protective lawsuits based on the Anti-Unfair Competition Law and the Uniform Trade Secrets Act within a week in California, Washington State, Massachusetts, and the District of Columbia.

Yike used to respond proactively and passively, but now it has turned to a tit-for-tat proactive approach.

You sue me, he sues me, he sues you, you sue him... The situation involving music copyright and industry development has finally reached the final stage of "I sue you, I sue him."

In the afternoon of that day, the Yike team took a bus to have a new round of business negotiations with ASCAP.

"Xiao Yu, do you think there is room for cooperation between us and Apple?" Fang Zhuo was thinking about a question on the way.

"They have issued the ban, and we started to sue them again in the morning. Isn't there little room for cooperation?" Yu Hong said.

"ASCAP also sued us, but we are still talking about it." Fang Zhuo said with a smile, "But how should we find this cooperation area? The only thing I can think of is digital copyright."

Among the easy-to-use music format conversion software on the American market, iMusic and iTunes are relatively well received. They follow the principle of simplicity and stand out among the complicated software.

In fact, both iMusic and iTunes are for the use of their own users, and the wider spread exceeds the expectations of the two companies.

In addition, there are consumers who use Apple's iPod to use Yike's iMusic because the latter has wider adaptability and the former is positioned as compatible with Windows. This is also one of the reasons why Apple accuses Yike of unfair competition. .

"Mr. Fang, how many users can paid digital music downloads bring?" Yu Hong was different from Fang Zhuo's firmness. She still had some hesitations at the software level, which was also the doubt of some employees.

"The market cannot continue to be so barbaric. If we walk on the right path, we will definitely gain something, and how much we gain depends on our method in the process." Fang Zhuo glanced at his watch. It would be three o'clock in the afternoon. He could already see Here comes the AS sign.

Yike arrived at AS's office and everyone got out of the car.

This is Fang Zhuo's first time here, but others have been here many times.

However, by coincidence, Fang Zhuo saw people from Apple when he was passing by the corridor. They seemed to have just finished their meeting with AS.

Yu Hong frowned, not naive enough to think it was a coincidence.

Fang Zhuo also felt a sinking feeling in his heart. AS brought the two competitors together in such a naked way just for a higher offer. He didn't think that the other party was more optimistic about Yike than a listed company like Apple.

In other words, AS is most likely using Yike as a bargaining chip to raise prices against Apple.

At 3:10 in the afternoon, Fang Zhuo and his group of seven people sat in the conference room where Apple had just sat. Everyone's mood was obviously depressed.

"It's okay, we have to push back and talk again. AS is here to just practice, and there is another one." Fang Zhuo said in Chinese what he was considering under the current situation.

The guidance spirit of breaking the jar and breaking it was very effective, and the frustration of the other six people dissipated a lot.

After Fang Zhuo said this, he temporarily changed his negotiation strategy and said directly: "Mr. Taylor, our marketing director of Yike has been talking to you for a long time. I just saw that you have introduced new competitors. You Do you mind offering a price that satisfies you based on the negotiation you just had with Apple?"

Taylor, the executive vice president of AS, was a little surprised by the calmness of the president of Yike. He thought for a moment and smiled: "You are much happier than your colleagues. Apple's licensing quotation is 30% higher than yours, and there is also a single." 60% share.”

The copyright library licensing price negotiated by Yike before with AS was around 10 million U.S. dollars a year, which is a fixed price. What we have to do online is to charge for music downloads, and the negotiated share has always been around 50%.

Now Apple suddenly mentioned 13 million + 60% share, which is a very competitive offer.

Fang Zhuo weighed it in his mind silently and said: "I am happier than my colleagues because I am the president and I have authority that they do not have. Just like now, I can express my opinions on Apple's price from my status as the president of Yike. .”

Taylor asked with interest: "What do you think? Can you accept it?"

"Mr. Taylor, do you know why Apple is willing to quote a price higher than ours?" Fang Zhuo asked.

Taylor laughed and said directly: "Because they have more money than you."

The faces of Yu Hong and others were a little ugly.

Fang Zhuo nodded and admitted without changing his face: "That's true, but the United States not only has AS, but also SE, BMI, and record companies. With Apple's current sluggish computer business, it has tens of millions of dollars a year. Royalty fees are also very stressful, and these require cash.”

Taylor shrugged: "So?"

"So, Apple is willing to bear the pressure of raising the price so urgently to win the copyright, because they are at a disadvantage in the current market." Fang Zhuo said smoothly, "Apple has fewer users than Yike, and everyone knows that buying Users of P1 and Ipod are the most accurate music users, and our value is to sell AS music to them."

Taylor was unmoved.

Fang Zhuo tried to introduce competition: "Not only AS, but SE and BMI that we are contacting are also very interested in Yike's user group."

Taylor showed a somewhat frivolous smile: "Really? Mr. Fang, as far as I know..."

He added emphasis, and then said: "SE and BMI's response to you is not enthusiastic, not even as good as our AS."

Fang Zhuo frowned slightly. It would be very bad if the other party had communicated with SE and BMI.

He did not panic, but instead introduced the main purpose of today: "That is because AS has not heard our new conditions, but SE and BMI have already heard it."

Taylor put away his contempt. It was possible that the Asian in front of him behaved differently from his colleagues.

"In addition to being willing to match the price Apple gives you." Fang Zhuo confirmed this first, and then continued with Taylor's surprised eyes, "We are also willing to make improvements on iMusic."

Taylor sat up a little straighter with his upper body, feeling quite moved: "How to improve?"

"All digital music copyrights authorized by AS will not be shared to third-party devices." Fang Zhuo said a name he just named last night, "This is the SPA technology developed by our Yike, specially used for copyright protection."

He threw out another bargaining chip: "Also, iMusic can turn off the function of burning MP3 format to records."

Taylor really felt the sincerity from Yike. He looked at each other and the department head next to him, and he also saw the emotion in the eyes of his colleagues.

The record market in the United States is currently sluggish, which is a headache for music copyright agencies and record companies. One of the important reasons is the rise of digital music and their spread on the Internet.

At the same time, AS and SE people are very dissatisfied that digital music can be freely poured into records through software.

AS is the company that has responded most fiercely. It has sued nearly ten software with similar functions, including iMusic, iTunes, and Mcco. However, litigating a lawsuit requires a process, and this process sometimes becomes painful with the efforts of the barristers.

The executive vice president of AS turned his head and discussed in a low voice with his colleagues.

Fang Zhuo breathed a sigh of relief and signaled Yu Hong to hand the document to Taylor.

It can be seen from the other party's reaction that the existence of music burning software is indeed a headache for music institutions.

About ten minutes later, Taylor gave a formal answer: "Mr. Fang, we feel your sincerity. We still need further discussion on this point. How about we continue to talk here tomorrow afternoon at this time?"

"no problem."

Fang Zhuo stood up and shook hands with the executive vice president of AS, turned around and left with his team.

Taylor personally escorted President Yike out, then returned to the conference room and said immediately: "Call Apple immediately and tell them that Yike is willing to match their price and see if there is a higher price."

"We also need to tell them all the changes that Yike is willing to make to iMusic, as well as the SPA technology, and see Apple's attitude."

A department head asked hesitantly: "Where is Yike? Do we really want to talk to them tomorrow?"

"Fool, there is a small company that can force a listed company like Apple to increase prices, why don't we choose a better one?" Taylor said nonchalantly, "The people at Apple also have a very positive attitude."

He commented contemptuously: "This is a small company from the East. I don't know when it went bankrupt."

The department head nodded. It is true that listed companies like Apple are more attractive.

AS’s call went to Apple executives.

Sure enough, the other party attached great importance to the latest offer from the competitor.

In just half an hour, Apple's slightly cautious statement came - we are willing to further increase the sales share to 65%, and at the same time make beneficial changes to iTunes.

As for the specific extent of this "benefit", that requires further evaluation.

…

A group of seven people from Yike Business Negotiation was quiet on the way back to the company.

The four Chinese and two local white people were all observing the boss's expression, while Fang Zhuo frowned and thought.

Before the business car arrived at Yike's downstairs, Fang Zhuo suddenly said: "Can we still contact SE to meet this afternoon? Anyway, this time we are expressing important intentions, and it doesn't take much time."

"Yes, Mr. Fang." Qi He, the fastest-promoted overseas marketing deputy director of Yike, immediately replied, "SE is the company closest to us. If you want to talk to BMI, you have to fly to Washington."

Fang Zhuo nodded: "Then drive over there now and contact them on the way."

Qi He immediately took out his mobile phone to contact SE.

Compared with AS, SE has much fewer tracks in its copyright library. It was previously discussed that there was a condition of US$5 million + 55% share.

"Xiao Yu, you could see clearly from the side just now. What do you think Taylor and the others are thinking?" Fang Zhuo asked Yu Hong.

"Not optimistic." Yu Hong said her feelings on the sidelines, "I think Taylor is purely using us as a tool to raise prices. Maybe if we take the lead, they will contact Apple."

Fang Zhuo also had this judgment and took a breath: "Let's see how SE is doing. I suspect Apple has probably contacted them."

At four o'clock in the afternoon, the Yike team appeared in SE's office and had a quick business negotiation as expected.

Because of his previous communication with AS Taylor, Fang Zhuo talked about his sincerity more comprehensively this time.

He first talked about the sluggishness of the record industry and the trend of digital music on the Internet, then about the wild growth of digital music on the Internet, and finally about the digital music copyright protection technology being developed by Yike.

In a sense, iMusic has benefited from the spontaneous sharing of many users, and the current curtailment of software functions will definitely cause dissatisfaction among these people.

Facing pressure from music copyright agencies and competitors, Keyico had no choice but to make this choice.

The company has to survive before it can think about anything else.

The discussion between Fang Zhuo and SE took an hour.

If the previous negotiation with AS could score 80 points, then he thinks he can score 90 points this round.

However, even with a score of 90, there was no direct statement from SE, and the other party had to consider it just like AS.

This is actually a normal business process, but it is not good news for Yike, who is competing with Apple and has witnessed AS’s attitude.

Working overtime in the evening, Yi Ke had made an appointment with BMI in Washington for the day after tomorrow. The president would still lead the team in person, while the marketing director stayed in New York. However, everyone still had a glimmer of hope for another round of meetings with AS the next day.

What if one's own judgment is inaccurate?

What if Apple has no follow-up conditions?

In the afternoon of the next day, Yi Ke had a second meeting with the original team of AS, which resulted in good news and bad news.

The good news is that Fang Zhuo and Yu Hong's judgment is very accurate.

The bad news is that Apple followed up on the conditions.

AS's intention in the second round is obvious, which is to see whether Yike can offer an overwhelming price for taking advantage of the company, or continue to use Yike to force Apple to raise prices during negotiations.

This is actually normal.

However, the abnormal thing is that Taylor shows his intention too obviously, which makes people feel a little uncomfortable.

When Fang Zhuo saw this, he didn't say anything more. He just gave an offer that was close to the limit, US$13 million + 70% share.

AS is still discussing the lien exactly as it was on the first day.

Fang Zhuo did not bother to express his dissent and flew to Washington to meet with BMI in the early morning of the third day.

This time the business negotiations took a lot of time.

BMI is different from AS and SE. Its full name is the Broadcast Music Association of America. It is the second largest music copyright licensing organization in the United States. The number of music libraries is only less than that of AS. Moreover, most of its members are independent musicians. It has a relatively open attitude towards the outside world.

It was here that Fang Zhuo finally felt the true intention from the music copyright agency, and there was some gratifying progress.

BMI appreciated Yike's efforts in digital music copyright and expressed its willingness to see a better industry climate and jointly promote the development of digital music.

They also have a relatively positive attitude towards licensing music to Yike.

only……

However, BMI also bluntly stated that they are also actively open to licensing to Apple.

In other words, if BMI wants to eat from both companies, it does not want to sign an exclusive license and wants to receive money from both companies.

Generally speaking, what is pursued is "I have what others don't have", but under the competitive situation, "I have what others have" forces the inevitable "I have".

Not to mention that BMI has the most genuine and positive attitude among the three organizations, but if it doesn't sign the contract, and Apple directly signs an exclusive contract, it will further weaken its competitiveness...

Fang Zhuo was really surprised by BMI's request for two shares of money. He even vaguely appreciated such a straightforward request.

This time, I need to think a little bit about replacing Fang Zhuo, mainly because the conditions need to be re-evaluated.

On September 25, President Yike returned to New York and held a meeting to summarize the current trends in contacting music copyright agencies.

The three largest organizations, AS, SE and BMI, are personally contacted by the president, while other record companies and small and medium-sized organizations are contacted by the company team.

All in all, after contacting ten companies, the one that attracted the most attention was the BMI in Washington. The other companies were either waiting for a price, had contact with Apple, or regarded Yike as a barbarian destroying the market.

Regarding this "barbarian", Fang Zhuo is quite pleased. This is much better than having contact with Apple.

Fang Zhuo summarized the information and came to the conclusion that iMusic's changing conditions were a weapon that could arouse the agency's consideration, but it was not fatal enough.

"Xiao Yu, do you think we should quickly spend a lot of money to find a company to cooperate with? This may help some people confirm their intention to cooperate."

By the time the meeting was over, Fang Zhuo was not sure of his judgment.

"You mean BMI?" Yu Hong asked.

Fang Zhuo was very troubled: "BMI... this family is really not easy to be regarded as the first one."

He hesitated for a long time and then said: "Let's wait and see if anyone is willing to let go."

Yike's contacts regarding music copyright are very intensive, so it seems a bit urgent, which is very detrimental to business negotiations.

A little cooling down now might change things for the better.

However, the opposite happened.

One day later, the New York Times and other media suddenly published a lot of relevant news, reporting on the copyright-seeking behavior of Yike, a Chinese company.

"I was surprised to find that a company from Eastern China is challenging Apple."

"People from the ASCAP association revealed that this company called Yike is trying to calm the situation by purchasing the authorization of music copyrights when it is facing many lawsuits."

"Even though Made in China is gradually appearing in the eyes of New York City citizens, such electronic consumer products are still surprising."

"However, although Yi Ke frequently contacted music copyright agencies and record companies, they did not gain much."

"Because of Yike's previous behavior of destroying the music market, music copyright agencies and record companies are unwilling to license music to this Eastern company."

"Not only that, Yike is also facing serious infringement lawsuits. I am not very sure whether this company will go bankrupt because of the high compensation."

The New York Times is an influential media in the United States and even the world. Not only does its circulation rank among the top ten in the country, but its website also has a high number of clicks.

Reports represented by its content have had an almost seamless impact.

First, there was a clear notice from AS that they would cooperate with Apple in copyright licensing, and then there was the statement from SE. It was basically the same as AS, and even BMI, which wanted to get two bucks, had a bad tendency.

As for the record companies, they have an ambiguous attitude, and they are more concerned about the interests of the records in their hands.

For a time, Yike's external environment deteriorated sharply.

These media reports also brought another negative impact. Fang Zhuo received a call from Anliang Society Li Xinyue, hoping to have an interview about the MIGA fund funds.

Fang Zhuo has reason to believe that Li Xinyue became concerned about his overseas activities after seeing the reports.

On the evening of September 28, Fang Zhuo made the decision to offer a small amount of discounts on Yike M1 and P1, trying to consolidate a wave of market conditions in the market where it has advantages.

At eleven o'clock in the evening, the office was brightly lit and the employees had returned from get off work. Fang Zhuo was still looking at all kinds of information.

"The situation is a bit bad." Yu Hong gently placed the tea cup in front of the boss.

"When did you come? Didn't you go back?" Fang Zhuo didn't notice the marketing director coming in at all, raised his head and smiled at Yu Hong.

"It's work when I go back, and it's work here." Yu Hong shrugged, "Since I came to the United States, I have really focused all my attention on work, but I didn't expect that the market could change so fast."

"Apple has made a lot of preparations." Fang Zhuo smiled and couldn't help but light up another cigarette and hold it in his mouth. "We can't say it's fast. Our M1 and P1 still have advantages in the market. We just let it continue like this. , this advantage will soon disappear.”

The market constraints of digital music are gradually becoming clearer, and the inability to compete for share in copyrights heralds suffering in the near future.

"I used to think about what kind of business I could create that would be included in MBA textbooks, but now I'm halfway done." Yu Hong said with a smile.

Fang Zhuo was also amused: "You're the one who got beaten up by other companies, right?"

Yu Hong nodded.

Legal bans, copyright operations, and public opinion tendencies, Apple's continuous punches have completely suppressed Yike. The money and resources in this are indeed the foundation of the listed company.

If Yike fails in the market, the case of Apple flipping the market will definitely be written in MBA business textbooks, because what follows is a delicious cake in the era of digital music.

"Yike still made money. Even if we fail and return to China, there will be no big problem." Fang Zhuo stubbed out his half-smoked cigarette and said thoughtfully, "It's just that I don't know if Lao Xiong will take it this time." Knife (nǎng) me."

Yu Hongsha nodded thoughtfully and said: "That's most likely, after all, it's not the first time."

Fang Zhuo thought of Xiong Xiaoge's face and burst into laughter.

Yu Hong laughed with him, which was a rare relief in recent days, even if it was out of self-deprecation.

Ring ring ring.

The phone ringing at 11:30 pm was quite abrupt and penetrating.

Fang Zhuo glanced at the number, frowned, and took the landline phone.

After a few words, hang up the phone.

Yu Hong was already angry: "Anlianghui? Isn't this adding insult to injury?"

"It's okay. They were quite polite for their nature. They just asked me because they were afraid that I would go back to China without saying hello." Fang Zhuo took a sip of tea and said, "They are very reassuring. Sina's third quarter financial report will be out soon. That’s a big plus.”

Before Yu Hong could speak, the sudden and penetrating sound of the phone rang again.

The call this time was also very short. Fang Zhuo's concise response of "Yeah" made Yu Hong unable to guess who the other party was.

"Yike's situation is actually not too bad." Fang Zhuo picked up the teacup again and poured half of the tea into his stomach, and then said with satisfaction, "Things are all determined by comparison."

Yu Hong was puzzled.

"The court prosecution will be handled by a law firm. There won't be any big twists and turns for a while. Media reports are temporary. There are so many things going on every day, and the heat will fade away very quickly."

"It's about music copyright. We actually need a partner to demonstrate potential intentions."

Fang Zhuo spoke eloquently and analyzed the current situation.

Yu Hong stared at the landline phone that was picked up just now, and asked tentatively: "Just now..."

"It's another unlucky company." Fang Zhuo calmly answered, "Sony Music."

It is the record company owned by Sony, a competitor that has been cannibalized by challenges in the music player market.