stjorthotic Chapter 76 Zhou Yang Makes a Comeback
Chapter 76 Zhou Yang Makes a Comeback
After hanging up the phone, Lin Feng remained calm and composed, his fingers unconsciously tapping lightly twice on the table.
"Whose call was that?" Wang Peng asked, looking up.
The owner of "Innovative Digital Store" is surnamed Zhou. He has a very tough attitude and does not admit that he infringed on any rights.
Xu Qiang had just returned from outside and happened to overhear the second half of the sentence, so he immediately leaned over: "Is it the store that sells 'Sheng Yue'? He still thinks he's right?"
He said the songs on the machine were either pre-installed by the manufacturer or downloaded by the students themselves, and that it had nothing to do with him.
"Nonsense!" Xu Qiang cursed. "The invoice was always issued by his store, wasn't it? The machine was always sold by his store, wasn't it? How can he deny it?"
"So he's just bluffing." Lin Feng smiled disdainfully. "Attorney Zheng said that in this kind of case, the seller and the supplier of the infringing goods are jointly infringing if they cannot prove their legitimate source. He can't deny it."
Lin Feng asked Xu Qiang, "Have you seen anyone selling 'Sheng Yue' at school these past two days?"
"Yes!" Xu Qiang said angrily, "and it's not just one or two people selling them. I specifically inquired, and it's basically Zhou Yang who's in charge."
He recruited a group of people at school to sell his products secretly in the dorms and near the convenience store, offering lower prices than us and specifically trying to steal our business. I heard he also set up an agent network, offering substantial commissions.
Lin Feng frowned slightly. Zhou Yang's name had disappeared for a while recently, so why had it resurfaced?
Last semester, when promoting MP3 players at school, Zhou Yang was a major competitor. His competitor took a high-end approach, focusing on brands like Samsung. Lin Feng stole a lot of business from him, leaving Zhou Yang's business almost deserted.
After Lin Feng's "digital music festival + commemorative MP3 + popular ringtone" model became a huge success, Zhou Yang's business plummeted, and Lin Feng stopped paying attention to him.
It turned out that Zhou Yang had run into trouble selling MP3 players at school, so he went back and explained the situation to his father, Zhou Kun, who ran "Innovation Digital Store".
Zhou Kun had been in the digital product business for many years, and the father and son carefully studied Lin Feng's product model: low-cost generic MP3 hardware + pre-installed popular songs.
The two believed that the model could be replicated and that they could do it themselves.
Zhou Kun had connections in the digital market and with manufacturers in the upstream and downstream sectors, so he used the Lilac Commemorative Edition MP3 player as a reference. He purchased a batch of MP3 players of similar quality from upstream manufacturers, all pre-installed with hit songs.
The most popular song on campus right now is "Lilac Flower," but Lin Feng's official audio file is protected with DRM.
Unable to obtain the original audio file of "Lilac Flower," Zhou Yang used piracy technology to replicate the song and pre-installed it on the "Shengyue" MP3 players they sold.
As for copyright? In the market environment at the time, Zhou Yang and his son didn't care at all, and even thought it was a matter of course.
Lin Feng's MP3 player is priced at 699 yuan per unit, while Zhou Yang and his son's "Sheng Yue" MP3 player is priced at 650 yuan per unit.
Zhou Kun instructed his son, Zhou Yang, to leverage his university connections to develop a network of agents, while he himself also sold products from his store in the electronics market. His plan was to compete both online and offline through a strategy of copying and low-price tactics.
After Xu Qiang found out what was going on, he gritted his teeth in anger: "This is outrageous! They copied our model and even used a pirated version!"
"So we must fight back, and quickly and ruthlessly." Lin Feng looked at Xu Qiang. "You just said that Zhou Yang recruited some people at school to sell goods. What are the specifics?"
Xu Qiang replied, "I've inquired about it. Zhou Yang has recruited active members from several departments at the school, which is somewhat similar to our approach of developing agents, but more loosely organized."
He offered lower prices, but his commissions and profit margins were higher than what we offered to our agents, so many people were willing to help him distribute the goods. They mainly sold them in dormitories and outside the cafeteria.
At the same time, Zhou Yang also developed campus agents at universities such as Sichuan University, Shanghai Jiao Tong University, and the University of Electronic Science and Technology of China.
"Have our agents been affected?" Lin Feng asked.
"Not for now," Xu Qiang shook his head. "After the Jiaotong University incident, our agents at various universities have seen good sales and enthusiasm. But in the long run, this will definitely have an impact. Moreover, the competition will become increasingly fierce!"
Lin Feng remained silent for a moment. The situation was slightly more complicated than he had anticipated. The other party was not a simple pirate seller, but someone who was consciously imitating their product and distribution models, and had a certain degree of penetration.
Legal proceedings can take a long time, while market erosion happens every day.
"Xu Qiang, find Zhou Yang directly for me. Ask him to come out and tell him I want to talk to him."
"Talk to him?" Xu Qiang was taken aback. "Talk about what? We've already sent a lawyer's letter..."
"The lawyer's letter was sent to his father's company. I spoke with Zhou Yang as a person, about what he, as a university student, would face for organizing the sale of infringing products on campus. How would the school handle it? Would it be recorded in his file? Would it affect his graduation?"
Xu Qiang's eyes lit up: "I understand! This is a two-pronged approach! His dad's connections in the market, so he might not be afraid of delays. But Zhou Yang is a student, and if the school investigates..."
Lin Feng added: "Tell him that if he continues like this, we will send the relevant evidence, along with copies of the lawyer's letter and the indictment, to their college leaders and counselors."
By the way, is it considered a serious offense for a college student to sell pirated goods on a large scale for profit? What kind of punishment should they receive?
Listening from the side, Wang Peng couldn't help but say, "This is going to be good!"
Lin Feng's gaze sharpened: "The business world is like a battlefield; he crossed the line first. We are fighting back in accordance with the law and regulations to protect our legitimate rights and interests, and there is absolutely nothing wrong with that."
"Xu Qiang, when you see Zhou Yang, tell him everything exactly as you said. Ask him if he wants to sit down and talk now, or wait for the court summons and the school disciplinary notice to be delivered to him together."
"The time is tomorrow at 2 PM, and the location is our office. Don't miss it!"
"Okay! I'll go find him!" Xu Qiang couldn't wait any longer.
Lin Feng then assigned Su Wan, who was in charge of publicity, to handle another matter.
"Su Wan, spread some word within the school that 'Sheng Yue' MP3 uses pirated songs, has poor sound quality, and may even involve legal risks."
It's important to emphasize that supporting legitimate music is essential for the continued production of good music. If everyone buys pirated copies, there will be fewer and fewer great songs like "Lilac Flower" in the future.
"Understood, create some public pressure!" Su Wan understood.
After arranging things here, Lin Feng turned to Wang Peng and asked, "How's the equipment for sound quality comparison coming along?"
"It's almost done. The switching is very smooth, and the difference in sound quality between the headphones is obvious." Wang Peng handed over the device. "It's just that it's a bit bulky, so it's not convenient to move around."
"As long as it's clear enough, that's fine. Make sure it's properly tested before the weekend performance." Lin Feng listened to the audio; the clear, full sound of the original file contrasted sharply with the rough sound of the pirated file during rapid switching.
"This step is very important. Students need to intuitively feel the difference and understand why original products are worth supporting."
At this moment, Shen Jingyi walked over: "President, when will Tang Lei and Yang Chengang arrive? We need to arrange for them to go to the rehearsal site."
"Yang Chengang will arrive first, around next Wednesday, and Tang Lei will arrive next Friday."
"The equipment and technicians from Swift Audio were on site early Saturday morning."
"Okay." Lin Feng nodded. "Let's go over the process of the live interactive segment again, especially the blind listening test. How to organize the audience, how to guide them, and the script needs to be well-designed. We need to expose the inferiority of pirated products without making it seem like we are deliberately belittling our competitors. The key is to promote the value of genuine products."
"Understood, Jingyi and I will go over the details again," Su Wan replied.
Shen Jingyi asked with some concern, "President, what about Zhou Yang and his father... will they cause trouble during the performance? Like sending someone to the venue to hand out their 'GG' (gifts), or do something else?"
"That's a possibility," Lin Feng thought for a moment. "I'll have Tan Zhao find a few more reliable classmates to keep an eye out inside and outside the auditorium. If they see anyone posting 'Shengyue' (a type of online music app) or causing trouble, they should politely ask them to leave. We're in the right, so we don't need to be afraid."
……
Xu Qiang found Zhou Yang at the entrance of a small supermarket next to the third canteen of Xichuan University of Technology.
Zhou Yang was talking to two boys, gesturing with a blue "Shengyue" MP3 player in his hand. When he saw Xu Qiang approaching, he stopped talking and became wary.
"What's up?"
Xu Qiang didn't beat around the bush and said directly, "Lin Feng wants to see you. Tomorrow at 2 PM, on the second floor of the Startup Incubation Center, at Fengchi Digital's office."
The two boys next to Zhou Yang exchanged a glance but remained silent. Zhou Yang stuffed his MP3 player into his pocket and replied coldly.
"Lin Feng wants to see me? Sure, have him come find me here. I'm pretty busy."
Xu Qiang stared into Zhou Yang's eyes. "Lin Feng asked me to tell you a few things, so listen carefully. The lawyer's letter regarding your alleged infringement has already been sent to your father's 'Innovation Digital Store,' that's a company matter. What Lin Feng wants to talk to you about is your personal matter."
Zhou Yang frowned: "My personal matter?"
"Yes. You are a student at Xichuan University of Technology, and you organized the sale of pirated and infringing goods for profit. Does the school know about this? If your college leaders and counselors find out, how will they handle it? Will it be recorded in your file? Will it affect your graduation or even your degree? Think it through carefully."
Zhou Yang's expression changed. The two boys beside him also looked surprised.
"Who are you trying to scare?" Zhou Yang raised his voice. "I'm selling my stuff, what does that have to do with the school?"
"I've delivered my message. Whether you go to see Lin Feng or not is up to you." With that, Xu Qiang left.
Zhou Yang scoffed, "Who are you trying to scare? Do you think I'm easily frightened?"