One of the most tragic examples is China Yan Hong.
I don't know this company? It doesn't matter, because you must know VCD players.
In 1990s, Jiang Wanmeng, the founder of China Wanyan, successfully developed the VCD DVD player. At that time, the price of LD disc was 400-500 yuan, while the price of VCD disc was only about 10%. Therefore, it can be predicted that the annual sales volume of VCD players will reach about 2 million units.
People in China didn't know about VCD until the end of 1994. This year, Wan Yan produced thousands of VCD players. Not only that, Jiang Wanmeng also wants to develop CDs, but he can't let ordinary people buy guns without bullets. To this end, he purchased the copyright from 1 1 audio-visual publishing house and distributed 97 kinds of karaoke discs. In less than a year after its initial establishment, "Wanyan" invested everything, created a market, established a famous brand, and formed a set of molding technology to dominate the VCD industry.
It can be said that Wan Yan's entrepreneurship is successful and brilliant. However, Wan Yan also brewed a cup of bitter wine for himself. What makes Jiang Wanmeng feel sad is that the first batch of 1000 VCD machines launched by Wan Yan were almost all bought by domestic and foreign household appliance enterprises as prototypes and became the object of dissection, but he could do nothing, because there was no intellectual property protection, specifically, he did not apply for patent protection for VCD.
Without patent protection, there is no way to prevent others from making the same VCD, which will eventually lead to the failure of the company.
If you had applied for a patent, perhaps, the current DVD industry structure would be rewritten.