IPR: Auction

Prepared by Peter Li-Chang Kuo

In 2007, I was involved in the operation of a start-up company in Silicon Valley. They obtained enough capital through an auction to expand their facilities and become a unicorn enterprise.

The activities of the enterprises can be summarized as two: one is “Financing Activity” and the second is “Operating Activity.”

When opening a company in the United States, the official who in charge will ask you about the purpose of the shares you set, and then he’s encouraging you to say: "Sell a part of your shares as soon as possible to get funds to run the business." This way of selling shares to obtain funds is a type of financing activity.

Consequently, if you already have “the ideal business target” as your company is established, you can sell a part of the shares through the auction, in exchange for the working capital, to implement the ideal of entrepreneurship -- enter the operating activity, in order to achieve the purpose of start-up your business. Above mentioned firm who just providing the internet services, and their market value is now as high as hundreds of billions of dollars. Entrepreneur and investor have mutual benefit from each other. It can be seen that auction is a good way to attain the purpose both of entrepreneurship and invention.

When I attended the APEC CEO Summit in Singapore to report on the New Tech-Economic System (TES) we invented; Dennis, the chairman of a world-renowned accounting firm, who suggested that “You are able to make good use of the shares of yours to obtain funds through auction and expedize for attaining the purpose of your invention.”

Actually, for the new venture capital that I took part in the United States in 2007, they put out 800,000 shares for sale at auction, minimum bid price at US$ 50 per share, and finally sold US$ 240 million— that meant US$ 300 per share; with this deal after funding, it can effectively expand the required facilities, to actuate those related operating activities, and become a pivotal enterprise. Unfortunately, it was a pity for our state that because “the interference of non-economic factors” from Taiwan's corruption entities to cause us could do nothing, and we must endure until August 16, 2017, and we missed the best time to switch the kind to the cash for attaining our mission goal of “social responsibility investment” (SRI).

Our invention has two main orientations: one is to upgrade traditional currency to electronic currency into a "Cashless System"--its transaction volume is already approaching US$ 36 trillion recently; and the second is to update traditional stores to be "the electronic store systems"--"The eStore System" also be called "TES." In order to meet the policy of electrification, we advocated to upgrade those vending machines to the electronic stores with charging functions. The invention as shown below:

1. Actuated the “Cashless Transaction System” with power chip;

2. Invented “Transmit-Tech” for system connection to form a global networking — “All things are internet-connected in intelligence” (AIoT);

3. Advocated the “ICT Control Center” to manage money/goods/logistics and information flows.

In addition, “eStore” is also called “Energy Storage Site.”

Linda Din, the inventor of the “TES”, accepted the invitation of the Australian government as a keynote speaker at APEC 2003 and based on her invention patents to contribute "Global Channel-TES" to the conferences. In addition to 21 member economies, representatives from the United Nations/ WTO/ OECD and other international organizations attended the meeting; Linda Din emphasized that the "Cashless System" and "Auto-Transmission" used in the system will bring "safety and effective" and through the use of "Contactless Technology" will bring "hygiene and environment protection" —COVID-19 of 2020 has verified Linda Din’s prophetic prediction. The APEC Ministerial Statement officially responded that “This is the best guidance to help 240 million people start their own businesses." Meanwhile, the contribution had won the best practice of strengthening the economic society, Linda Din is the owner of Copyrights. Soon after, the relevant cashless forum was established, and the cashless system has gradually spread in every corner of the civilized world. Nowadays, the Cashless System has approached a transaction volume of US$ 36 trillion.

Base on the due diligence, America will be able to build 2 million of the above-mentioned eStores. If the cost of updating is US$ 30,000 per eStore, so that 2 million stores will cost US$ 60 billion. Dennis said that "This can be divided into some auctions through asset securitization to obtain the funds at the stages and run the operating activity.” In short, the eStore we invented will be able to gain the funds through auction to achieve the mission goal of social responsibility investment — that is, "One eStore One Business One Job" we declared at APEC to create 2 million job opportunities for those who need jobs.

In the human world, there are two types of people, one is those who owned the ideas in products, and the other is those who owned money and willing to help to implement the ideas. Auction is like a bridge connecting the two, accomplishing the goal of interoperability, and also making entrepreneurial achievements. Perhaps, their deeds will change the world in the future, to make the world moving toward the direction of much safer and convenience.

Recall that I founded Black Stone Co. on March 13, 1979 in New York to help my client developing the satellite receivers; I saw the auctions in various forms to sell the financial products on Wall Street. In today’s conference, the financial experts suggested once more that “You should use the international auction for reaching the goal.” Although there are specific requirements that we shall do the preparations; nevertheless, I am still thinking Dennis’s suggestion is worth considering and adopting.

Peter Li-Chang Kuo, who made the precision electronic components since 1966 and became an important supplier of American firm; he was admired by Mr. Chiang Ching-Kuo as "the father of Taiwan's precision industry" in 1974, and also helped his client in the name of “AVNET Inc.” successfully listing on NYSE. In 1979, Black Stone Co. was founded in New York to develop the satellite receiver, and created the K-Horn Science Incubator to promote the social responsibility investment (SRI) for incubating the RF Transmitter/ Cashless System and etc., and gain the bills and policies such as “Anti-corruption/ E-Commerce/ ICT/ IPR/ Micro Business…” at APEC CEO Summit and Ministerial Meeting. Kuo is the author of the books: "Opening the Way for Next Generation, An Economic Society of Righteousness, Social Responsibility, W Society...," and in addition to the Paper of "Analysis of Development of the Information Society in Taiwan's Third Sector."

2021年4月27日 星期二

Auction

2021年4月27日星期二