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Some other facts from CeBit...
Hi guys, this is my first post, but I'm both a Meizu fan and an IT journalist since a long time. I'm also italian and I know Sisvel history quite well.
I saw Sisvel in action with these court actions and seizure at shows now more than three times. It happened at IFA with Sandisk Malata and many others. It happened even at MediaWorld shops in Italy for Creative Labs products, it happened at customs in Genoa Port for a container of Oregon Scientific Players and so on.
This time (I'm at Cebit these days) they are targeting the few companies that are still resisting this "licence" thing. Legally speaking the patent protection/licence that Sisvel is asking is sound and correct, but the spirit with which it is done and enforced is seen by others like something not in line with the Standardization committees (Fraunhofer has other rights but doesn't play the patent game like Sisvel, neither Thomson does...). Someone in the industry is calling them "Patent trolls".
One of the rules for the patents involved in standards is that the access to the patent should be granted to everyone and at a fair price. Sisvel is asking a fair price per unit (30 US cents per audio channel) but there are other strings attached that make Sisvel scheme quite hard for small companies or manufacturers that sell world wide (also in countries where the enforcement of the patent could be more difficult).
Anyway, I was at Gigabite booth while the german police was taking the G-Smart mobile phones for the same reason while Avermedia Booth was cleaner than a surgical room... This is not Meizu specific... is "market/product" specific!
I can tell you that many asian manufacturers of devices that could be hit by Sisvel are now just offering OEM/ODM so that the Licence responsibility falls on the customer and not the manufacturer. They are the "quick learners".
Someone may object that Windows Mobile DOES HAVE an MP3 deconding in Windows Media Player and if you look at the licencees list you'll find MS just for XBOX and MediaCenter, but not for these operating systems...
It is however correct that Dane-Elect pays the licence for the M3 and M6 sold in Europe, but Sisvel is looking for the royalty on EVERY SINGLE device manufactured and this is why keeps an eye also on the brands that are licenced just for a specific market. They more or less "demand" the licence agreement with the manufacturer and not single local distributors. Licencing to distributors is an easy way to figure out who is producing what and how big is their market.
As for the latest news, Sisvel is now also into CDMA2000 and DVB-H... so new troubles for anyone producing products complying to those standards!
My bottom line is: Meizu will be able to sell their products throug distributors that get the licence, but they will be more and more targeted by these actions to be persuaded to licence directly...
If some of you says "hey, just .60 usd per unit... is not a lot", just remember that for manufacturers the licencing does imply that this royalty is paid retroactively for ALL the devices made/sold since the last 3 or 5 years... no matter where they were sold. This piles up to quite some money and would be definitely an "unexpected additional cost".
These are my "5 cents".
I'll pass by Meizu booth again tomorrow and the day after tomorrow to see what happens. More reports will follow!
In the meantime the number of seizures will increase: the guy going around the show had quite a massive pile of printouts whith names and products to take away from the show!
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