LED display plagiarism, intellectual property rights, vacuum

In April of this year, the Frankfurt Light and Sound Exhibition in Frankfurt was supposed to be an excellent product display platform for most of the factories in Shenzhen that took up international sales. But what is unexpected is that one of the Shenzhen manufacturers video + The new cross-border product of the light mix was stole by the peers on the first day of the show, which made people very angry. The patent problem of the LED industry has once again been pushed into the public eye.

It is understood that the manufacturer has been committed to the development of high-end creative video solutions, mainly producing ultra-thin, lightweight, flexible and deformable structures, enabling a variety of creative LED display systems. The main sales revenue of the company's business comes from the creative stage and exhibition LED display , and most of them are exported overseas, which shines in the world's top performances and exhibitions.

"In foreign countries, especially in the stage, theater, theater and other occasions, in order to achieve a stunning stage effect, they demanded that the LED display and lighting be perfectly matched. For this reason, the manufacturer invested a lot of energy and time, research and development, design, demonstration, Test, modify, and cost several million yuan of testing, the industry first proposed high-power LED and low-power LED hybrid design, stage video + lighting mix and match concept products." The deputy general manager of the factory told reporters, this The secondary product separates the LED display and the illumination, and combines them perfectly through background programming. It is different from the LED display and the light, but a brand new category.

Since its launch, the product has caused considerable repercussions in the international market. Since the first exhibition of the Dutch exhibition in February last year, there have been a lot of overseas orders, and there are countless customers who are interested in consulting. In order to protect intellectual property rights, the manufacturer applied for a patent for invention for this product. In view of the stolen product, the manufacturer has already started the legal process, but the worry is that from the legal process to the implementation will go through at least 6 months of empty window, plagiarism will bring huge economics to the manufacturer. loss. Even if the legal responsibility is finally pursued, the extra cost to the normal development of the enterprise is unimaginable.

In fact, in the LED display industry, this kind of worry is not a worry. As early as March 2010, Zhou Ming Technology (SZ.300232) had jointly sealed 11 enterprises that infringed on the patented technology of die-cast aluminum boxes, and severely punished some severely plagiarized enterprises. However, this has caused immeasurable losses to Chau Ming Technology, and this punishment has not curbed the plagiarism.

Low gross profit era

LED display began more than 30 years ago, from monochrome, two-color to today's full color, LED display technology has gradually matured. The era of high-margin LED display has ended. When low-margin and homogenized products flood the market, many companies choose low-price strategies, and the market has completely entered the extreme.

LED display manufacturers with certain strength attempted to eliminate some small and medium-sized manufacturers through price wars, but they directly led to a decline in gross profit and slowdown in the entire industry. The gross profit level of the channel-based LED display manufacturers has dropped to 10%-15%, and the gross profit of engineering channels is only maintained at around 20%.

Insiders said that the current LED display buyers, first set their own requirements, select chips, ICs, power supply manufacturers, and then directly ask the price. In China, there are even accessories companies that provide cabinets and power supply assemblies for small factories that do not understand technology. Display companies can only assemble and assemble them. Therefore, they do not have the size of a large factory, nor the technology of a large factory. Only by making the price "no minimum and only lower", to win a certain market share. The result of low gross profit is that even the LED display manufacturers with assets exceeding 100 million have closed down. The end of the company, Duo Duoli, Bolunte, Vision Optoelectronics and Yiguang Technology have sounded the alarm for the industry.

Innovative environment

Low-margin and product homogenization are inextricably linked. LED display companies are well aware that they seem to be trying to change this dilemma, but it is difficult to achieve expectations.

Today, as we walk through the LED display booths at major exhibitions, we still feel that we are still homogenizing products and advertising for low-cost businesses. Chen Qikai, general manager of Taiwan Accumulation (TW.3527), said that after so many years of development, domestic LED displays still choose to sacrifice refresh rate and gray scale to improve the brightness of LED display, truly high refresh rate, high gray There are very few enterprises with high order and high efficiency. For the price, even the basic performance of these LED displays can be sacrificed, let alone innovative.

Looking at the list of patents of LED display companies in recent years, most of their patents are in waterproof, box splicing, high definition, high gray level, high efficiency, appearance improvement, etc., and there is no breakthrough innovation. The ultimate goal is simply to exchange these so-called "innovations" for high government subsidies and to raise stock prices. Even the products of the LED display manufacturers, many of them are copying the patented box appearance technology of American Barker.

In order to alleviate the failure of domestic manufacturers to focus on innovation and R&D, and the continuous decline in gross profit, the country and the industry have introduced a series of subsidy policies, hoping to share some research and development expenses and enhance the international competitiveness of products. But "innovation"

For the LED display company, it is already a "difficult problem". This is not only the subjective constraints of existing science and technology, but also the objective limits of research and development funds, research and development time, and the transformation of research and development results.

“LED display has entered a low-level marketing state. With the increasing stability of 3528 and in-line products, the industry has entered a bottleneck PK state.” Wu Meng, director of LED display market, Zhou Ming Technology, said. Few companies now conduct more in-depth research and development. The big factory is still plagiarized, and it is not uncommon for small factories to copy large factories.

Intellectual property vacuum

Enterprises apply for patents in order to protect their intellectual property rights. But in fact, do these so-called patent certificates really protect the company's products from plagiarism? The facts are also negative.

Now everyone is talking about protecting intellectual property rights, but it is actually very difficult to protect them. Because as long as you can see the technology, basically can be obtained through anatomy. "The LED display box, which is what we can see, is very easy to copy. The only thing that is difficult to copy is the control system," said the chief engineer of a listed LED display company.

"A lot of technology is very difficult to apply for a patent. Most applications can be applied to the appearance and technology. As long as the plagiarist makes a little change, then you can't think that I infringe your patent." The above-mentioned insiders said that they would take the appearance of the LED display. In other words, the same is a die-cast aluminum box. As long as the size is changed, even if it is 1cm, it is difficult to determine the infringement at the legal level.

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