Chinese TV makers are calling
for a united voice in their royalty negotiations with international patent holders for TV sets to be sold in the United States.
Shen Jian, a spokesman for China's second-largest TV maker Skyworth, said
yesterday that patent holders with the US standard of Advanced Television System
Committee (ATSC) asked for more than US$20 in royalties on each TV set. Chinese
TV producers say that such high royalties would make it impossible for them to
The US Government requires all TV sets and tuning devices sold in its market
to include an ATSC tuner. The requirement will go into effect from March, 2007,
in order to provide time for the industry to adjust before the formal closure of
analogue programmes in February, 2009.
As the world's largest TV producer exporting about 50 million sets a year,
China might suffer if the royalty claims are too high. The United States and
Europe are two of its major export markets.
"If the patent holders ask for US$23 per unit, that could be disastrous for
everybody," Shen said. An executive with TCL, the third-largest TV producer in
terms of sales, said the impact should not be very serious, but that would not
come without hard-fought bargains.
According to the 21st Business Herald newspaper, the State Intellectual
Property Office (SIPO) has a list of digital TV set royalty claims, which
amounts to US$23 per unit almost three times more than the previous estimate.
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