John Ben DeVette's Blog

Thoughts experiences & learnings about the world of academic publishing …

Selling E-book Readers in China. Using Patent Laws to restrict competition. A Lesson from the DVD player.

I expect China will plan to use its own local technology for e-book readers. This is what they did for DVD players several years ago. The government created a new and unique standard for the type of laser that must be used in Chinese DVD machines. The standard is different from the rest of the world. The result is all locally sold DVD players, even if manufactured by a foreign-owned factory located in China, have to use Chinese technology in order to be Chinese compliant, and therefore everyone has to pay a royalty to the Chinese patent owner of the “new” DVD standard. The problem is the standard was not decided by open market forces, but rather has been artificially created and legislated into existence by the Chinese government.
The future demand for e-book readers in China will be huge. China Mobile, the world’s largest cellular company, has already announced it intends to dominate the e-reader market and plans to use Chinese technology.

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19 November 2009 - Posted by | Uncategorized | , , ,

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