Tech giants start by disassembling systems

Chapter 109 Parting on Unhappily

He Zhiqiang was slightly taken aback by Su Chen's crisp and decisive interruption, but he quickly regained his composure.

He pushed up his glasses, a shrewd calculation flashing in his eyes, then slowly extended one hand, raising six fingers.

"Source code-level protocol stack access license, 6000 million. A patent licensing fee of 15% of the factory price will be charged for the communication module of each subsequent device."

There was a three-second silence in the conference room.

Zhou Ming sat next to Su Chen, and his hand holding the pen visibly paused for a moment.

Su Chen stared at He Zhiqiang for a full five seconds, then let out a short laugh.

That laughter contained no goodwill whatsoever.

"6000 million?"

"Yes, 6000 million." He Zhiqiang's smile remained unwavering, as if it were the most reasonable figure in the world.

Su Chen slowly leaned back in his chair, crossed his arms, and looked at the person opposite him with the eyes of someone appraising a rare species.

A base licensing fee of 6000 million, plus a 15% per-unit licensing fee.

Based on the current shipping pace of the Feiniao platform, assuming 100,000 modules are sold per year, with an average communication module cost of 120 yuan, 15% would be 18 yuan per unit, totaling 1.8 million yuan per year. While the licensing fees may seem small, the initial licensing fee of 60 million yuan is substantial. How many units would need to be sold to recoup this deficit?

Even more absurdly, the LDCL standard itself isn't particularly advanced technically. Su Chen analyzed its protocol architecture through a system analysis, and frankly, it's just a standard point-to-point communication protocol, even inferior to DJI's OcuSync in terms of interference resistance and bandwidth utilization.

Its only advantage is that it conforms to the national standard.

Is a piece of paper stamped with an official seal really worth 6000 million?

"Mr. He, to be frank," Su Chen's voice was low, but every word was as sharp as a knife, "Is your quote an insult to my intelligence, or an insult to the intelligence of the entire drone industry?"

He Zhiqiang's smile froze for a moment.

"Mr. Su, what makes you say that? Our pricing is based on rigorous calculations—"

"Calculation?" Su Chen interrupted directly, "Then I'll calculate it for you too. Seven months have passed since the LDCL standard was issued, and you've granted basic production licenses to 16 companies. Of these 16 companies, how many have actually integrated LDCL into their mass-produced products?"

He Zhiqiang's lips twitched slightly, but he quickly covered it up.

"Well... the various companies are still in the process of technical integration—"

"Zero." Su Chen held up one finger. "The answer is zero. Sixteen authorized companies, seven months, and not a single product has been launched. Mr. He, do you think this is normal?"

He Zhiqiang's expression stiffened slightly, but he maintained his composure: "Mr. Su, the promotion of a new standard takes time, and we have ample patience with the market. LDCL is already a mandatory national standard, and all commercial drones will eventually be compatible with it. When that time comes—"

"By then?" Su Chen retorted with a cold laugh, "By then, do you think those companies will obediently come and pay up, or will they try every possible way to bypass you?"

He Zhiqiang's smile finally faded, and his face darkened.

"Mr. Su, the patent barriers of the LDCL standard are not so easy to circumvent. Any commercial drone communication equipment sold in China must pass LDCL compliance certification. I believe Mr. Su understands this better than I do."

Su Chen knew this, of course.

This is precisely the source of Hangxindatong's arrogance—the iron hammer of policy hangs high there, and not being compatible with LDCL is tantamount to cutting off one's own business path.

But Su Chen also understood another thing: policies are static, but people are dynamic.

The standard specifies "must be compatible", not "must only be used".

In other words, as long as Hongyuan's products can pass LDCL's compliance test at the certification level, Hangxindatong has no say in what protocol is actually running at the underlying level.

Just like a mobile phone supports multiple communication standards, users always connect to the fastest network on a daily basis.

Su Chen's plan was gradually taking shape in his mind—first, to obtain the basic production license for LDCL through legal means (without requiring source code level permissions), and then to develop H-Link's proprietary protocol based on that.

It appears to be compatible with LDCL, but actually runs H-Link.

On the surface, it is part of the LDCL camp, but in reality, it is a completely separate entity.

However, this plan is contingent on Hongyuan obtaining at least a basic LDCL production license.

Hangxindatong even charges exorbitant prices for basic authorizations.

"Mr. He, since we can't accept the source code-level license, I'll propose another option." Su Chen's tone softened slightly. "A basic production license, without involving source code modification, just enough to allow our product to pass LDCL compliance certification. Surely we can negotiate a reasonable price for that?"

He Zhiqiang's eyes lit up again when he heard this.

He thought Su Chen had backed down.

In his view, Su Chen's decision to go from demanding source code-level licensing to only requiring basic licensing indicates that Hongyuan's need for LDCL is rigid—in other words, Su Chen has no choice but to buy it.

If you have no choice but to buy it, why sell it cheaply?

"Basic production licensing, of course, is negotiable." He Zhiqiang smiled again, but that smile concealed a knife. "Considering Hongyuan Intelligent's current market size and the expected shipments of the Feiniao platform, we can offer a discounted price—4000 million, with subsequent patent fees calculated at 12%."

4000 million.

A basic license, which doesn't even allow access to the source code, costs 4000 million.

Su Chen felt his blood pressure rising rapidly.

He took a deep breath and then exhaled very slowly.

"Mr. He, I'll ask you one last time." Su Chen's voice was unusually calm. "Seven months after the LDCL standard was issued, not a single company has actually adopted it. Don't you think the problem lies with yourselves?"

"Mr. Su, I respect your opinion, but market matters cannot be rushed—"

"Can't be rushed?" Su Chen finally stopped suppressing his anger, his voice suddenly rising several octaves. "You say you can't be rushed, yet you want a staggering 4000 million. Don't you think these two things contradict each other?"

He slammed his hand on the table, and the mineral water bottle bounced.

"None of the 16 licensed companies have released products, DJI is completely ignoring you all with its OcuSync, and no manufacturer in the entire industry is willing to develop supporting chips for LDCL—these facts are right in front of you, and you still think it's a matter of 'the market needing to be nurtured'?"

He Zhiqiang's face turned completely cold.

He straightened up, looking down at Su Chen with a condescending posture: "Mr. Su, you can't say that. Regardless of how others see it, LDCL is already a mandatory national standard. If Hongyuan Intelligent wants to produce commercial drone communication modules in the domestic market, it cannot bypass Hangxindatong. This basic fact will not change because of your dissatisfaction."

When He Zhiqiang said this, there was a smugness in his tone that made Su Chen extremely uncomfortable.

That self-satisfaction did not come from strength, but from a firm belief in a monopolistic position.

He genuinely felt that he was in an unshakeable position, and all companies that wanted to do low-altitude communication had to line up in front of him and pay him.

Su Chen stared at He Zhiqiang for three seconds, then suddenly laughed.

It wasn't a sneer, but a genuine laugh that felt absurd.

"Mr. He, do you know what your biggest problem is?"

"I'd like to hear the details," He Zhiqiang said coldly.

"You've treated an administrative document like a gold mine, but never thought about how to turn it into a real mine." Su Chen stood up, looking down at He Zhiqiang. "The value of a standard isn't about how many red circles are stamped on its official seal, but how many companies are actually using it. Sixteen authorized companies, seven months, zero product launches—this isn't the market's fault; it's your pricing that has pushed everyone to the opposite side."

He Zhiqiang's face flushed red: "Mr. Su, you—"

"I haven't finished yet," Su Chen interrupted, "Your professors at Beihang University's School of Electrical Engineering spent six years developing LDCL, and I acknowledge that achievement. But treating that achievement as a cash cow, wanting to sit on the edge of the field and collect rent without even planting the crops—how is that any different from those institutions from a few years ago that were just coasting along on their patents?"

"You—!" He Zhiqiang slammed his hand on the table and stood up abruptly, his finger almost poking Su Chen's face. "Mr. Su, I advise you to watch your words! Hangxindatong is a nationally recognized standards-setting organization, not someone you can casually criticize—"

"Sense of propriety?" Su Chen wasn't intimidated by the other party's reaction at all. Instead, he took half a step forward. "President He, sensibility is reserved for partners who deserve respect. What right does a company that owns national standard patents but can't even collect a single yuan in licensing fees have to talk to me about sensibility?"

The air in the conference room almost solidified.

The two technicians next to He Zhiqiang looked at each other, neither daring to interrupt.

Zhou Ming silently closed his notebook; he knew there was no point in continuing the negotiations.

"Zhou Ming, let's go." Su Chen turned around and walked towards the door without hesitation.

"Wait! Mr. Su—wait a minute!"

He Zhiqiang's voice suddenly changed tone, from the previous toughness to urgency.

"We can lower the basic license price! 2000 million! 2000 million plus an 8% licensing fee—that's the most we can offer!"

Su Chen stopped at the doorway.

He didn't turn around, but a smile appeared on his lips.

From 6000 million to 4000 million, and then to 2000 million.

One second they're putting on an arrogant "you can't live without me" act, and the next they're selling off their stock at a loss.

This scenario looks all too familiar.

Su Chen slowly turned around, looking at He Zhiqiang's anxious face, and only four words came to his mind—

Why didn't you do this sooner?

"Mr. He," Su Chen's voice was calm, unlike the man who had almost overturned the table just moments before, "Even if you offered 200 million now, I wouldn't sign this table."

He Zhiqiang was stunned.

"Why?" His voice was a little dry.

"Because your attitude has shown me a fact," Su Chen said, emphasizing each word, "Hangxindatong hasn't acted like a proper operator. You only want to collect money, not build an ecosystem. By partnering with such a company, Hongyuan's future is one where you hold it hostage."

He paused, his gaze sharpening.

"So I won't get authorization directly from you. I'll find another way."

He Zhiqiang's face turned deathly pale.

"Another way?" he repeated mechanically. "What other way? All LDCL authorizations must go through us, Hangxindatong—"

"President He, none of those 16 authorized companies are prohibited from being acquired." Su Chen said this and turned to push open the conference room door.

Behind me came the sound of He Zhiqiang's chair falling over.

In the corridor, Su Chen's steps were steady and resolute. Zhou Ming jogged to catch up, lowering his voice to ask, "Mr. Su, are you really planning to acquire those licensed companies?"

"Out of 16 companies, there will inevitably be a few struggling," Su Chen said as he walked, his voice unwavering. "Find the smallest one with the lowest price and acquire it directly. Get the basic LDCL license, and we'll handle the rest ourselves."

Stepping out of the science park building, the June sun in Chengdu was rather dazzling.

Su Chen stood on the steps, glanced back at the window on the sixth floor of the office building, and then looked away.

"I'm going to acquire Hangxindatong in the future," he told Zhou Ming, his tone suggesting a well-established plan rather than a spur-of-the-moment impulse.

Zhou Ming didn't say anything, but silently made a note in his notebook.

Su Chen got into the car and leaned back in the back seat, closing his eyes to rest.

He was already mentally planning what would happen next.

Step 1: Acquire one of the 16 LDCL licensees, preferably the one with the least active business and the lowest valuation. This acquisition indirectly grants you a basic LDCL production license.

The second step: Implement a compatibility layer on the communication module of the Feiniao platform—ostensibly achieving LDCL compliance certification, but actually running Hongyuan's self-developed H-Link protocol at the underlying level. Externally, they claim "full compatibility with LDCL," while internally they are fully committed to promoting the H-Link ecosystem.

The third step is to master the two core technologies of adaptive channel management and air-to-ground cooperative networking. Once H-Link completely outperforms LDCL in performance, the industry will naturally vote with its feet. At that point, LDCL will become an empty shell standard that exists in name only but is actually used by no one.

As for Hangxindatong—once H-Link gains a foothold, their LDCL patents will go from a "gold mine" to "scrap metal." At that point, if we go back to acquire them, the price will only be lower than it is today.

Thinking of this, Su Chen opened his eyes, a slight smile playing on his lips.

Today's trip to Chengdu may seem fruitless, but in reality, it was quite fruitful. At least he finally saw through Hangxindatong's true nature—a group of academic bureaucrats who only knew how to guard the company seal and wait for people to hand over money, lacking both market acumen and industry vision.

The fact that such people hold national standard patents is the greatest tragedy for the entire industry.

But it doesn't matter, they won't block the way for long.

"Zhou Ming, contact Xu Lang for me." Su Chen took out his phone. "Have him check the business registration information and operating status of those 16 LDCL authorized companies, the sooner the better. Focus on those that intend to transfer ownership or are experiencing operational difficulties."

"Yes, Mr. Su."

The car drove out of the High-tech Zone and merged into the busy afternoon traffic of Chengdu.

As Su Chen gazed at the rapidly receding street scene outside the window, a sentence suddenly came to mind.

If you won't let me go in through the front door, I'll go in through the back door. Once I'm in the yard, both the front and back doors are mine.

……

Less than three hours after Su Chen returned to Shenzhen from Chengdu, news of his appearance at Hangxindatong Company spread throughout the industry.

Although the drone industry is not large in scale, it is an extremely tightly knit circle. As the head of the Feiniao platform, Su Chen's every move is closely watched by various industry self-media and technology journalists.

As for the information about the trip to Chengdu, it is unclear whether it was leaked by someone from Hangxindatong or Su Chen was recognized when he entered and exited the science park. In any case, several industry public accounts published speculative reports that evening.

Hongyuan Intelligent's Su Chen makes a secret visit to Hangxindatong; is H-Link aiming at the national standard for low-altitude communication?

"Flybird Platform's next step: Acquire LDCL license to address communication shortcomings?"

Su Chen personally travels to Chengdu to discuss LDCL licensing, revealing Hongyuan Communications' ambitions.

The reports are largely similar, with the core speculation being that Hongyuan Intelligent is seeking licensing for the LDCL communication standard for its Feiniao platform, and H-Link is likely a deeply customized communication solution based on LDCL.

When Su Chen saw these notifications, he was sitting in his office at the Longhua headquarters, reviewing the preliminary research reports on the 16 authorized companies that Xu Lang had just sent him.

He glanced at the headlines and put his phone aside without much expression.

Let them guess.

Whether we guess right or wrong, when H-Link is finally launched, everyone will understand that what Hongyuan wants to do is not to be a law-abiding tenant within the framework of LDCL, but to build its own building in the world of low-altitude communication.

Those at Hangxindatong who think they hold the key will eventually discover that they have locked not someone else's door, but their own path.