posted 26 September 2002 04:35 AM
Looks like this is going to be a headache for digital device makers.
We see a series of news reports in Japan on this Forgent patent issue recently since mid-July.What is reported in Nikkei Electronic Online, a Japanese news media as to the amount paid by , dated 2002.9.19 is
Sony paid :$16.2 million USD (Forgent's 2002/4Q)
Sanyo Electric paid:$15 million USD (Forgent's 2002/3Q)
And recent JPEG committee's announcement on this issue http://www.jpeg.org/newsrel1.html
My impression after reading some related news reports in and out of Japan is that Forgent gave up on developing better products and services, instead they started relying on patent related revenue.
That is fine as long as it is legitimate,but in the long term perspective, just relying on patent related revenue will not be good for Forgent itself in terms of financial balance because relying on this one revenue stream implies in a way the weakness in the company's long term financial stability.
I think that patent is not necessarily something that gives you secure revenue "forever". If the patent becomes obsolete and no one pays attention to it,what will happen to it?
I assume that Forgent has strategy on this.
I am interested to see how Forgent is going to make this patent revenue strategy into their long term growth in their video business.
keisuke
17:35 September 26,2002 Japan Standard Time
[This message has been edited by Keisuke Hashimoto (edited 26 September 2002).]
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posted 26 September 2002 04:35 AM
