Don't panic, America; this is just civilian technology.

Headquarters of Anle Toys Company.

At this time, Anle Toys Company's structure had changed, transforming from a small workshop-style company into a formal company.

For example, Zhang Guan, the former head of the technology research and development department, has become the current technical director Zhang Guan. It seems like just a change of title.

But in reality, it represents the company's transformation from a startup team-based model to a formal company operation model.

However, the meeting room was filled with gloomy faces, including Secretary Jiang Rou and Technical Director Zhang Guan.

This includes newly recruited CFO Wang Fang, Marketing Director Su Ming, Human Resources Director Li Teng, and Legal Director Xu Zhengming.

At this moment, all the company executives present looked worried and helpless.

After all, this sudden patent infringement lawsuit was completely unexpected.

This caught everyone at Anle Toys off guard and put them under immense pressure.

"Boss, according to our legal department's analysis, if we respond to the lawsuit..."

Because legal fees in the United States are very high, our monthly legal expenses will reach around $200 million.

This $200 million translates to a monthly legal expense of 1256 million RMB!

What's even more troublesome is that, according to the standard procedure for a Section 337 investigation, it usually takes about 12 to 18 months to complete.

In other words, regardless of the final outcome, we will be incurring $200 million in legal costs every month for the next 12 to 18 months!

"hiss!"

Upon hearing General Counsel Xu Zhengming's words, everyone present gasped in shock, finally realizing the cost of filing a patent infringement lawsuit in the United States.

It requires a minimum of $200 million per month for 12 to 18 months, and there is no guarantee of eventual success.

All of this adds up to a staggering legal cost of 1.5 million to 2.2 million yuan.

No wonder so many small and medium-sized companies are so afraid of patent infringement lawsuits against large companies.

Large companies are simply too big to afford the cost of a patent infringement lawsuit.

Conversely, if you are a small or medium-sized company, you will need to hire a large number of professional lawyers to serve you in order to respond to patent infringement lawsuits.

The process of hiring a professional lawyer to serve them consumed enough money each month to burn through the working capital of this small-to-medium-sized company.

What's even more tragic is that this money-burning state won't last for a month or two, but will continue for 12 to 18 months.

Which small or medium-sized company can withstand such a long period of time?

The final outcome was not that the company was dragged down by huge legal costs and then declared bankruptcy.

The huge monthly legal costs have affected the company's normal development and operation, leading to stagnant performance or a significant shrinkage of business.

Therefore, small and medium-sized companies are actually very afraid of getting into patent infringement lawsuits with large companies.

This phenomenon of small and medium-sized companies being afraid to fight patent infringement lawsuits with large companies is not unique to the United States.

In fact, this is true in all countries around the world, including China.

Patent infringement lawsuits are a notoriously protracted type of legal battle, and lawyers worldwide are among the highest-paid professionals.

To hire them to work for you, you would naturally need to spend a lot of money.

Moreover, it's not enough to just hire one professional lawyer; you need at least several or a dozen professional lawyers.

Given this, which small or medium-sized company can withstand such enormous legal costs?

However, when Zhang Guan, the technical director, heard that the legal costs were so high and were affecting the company's R&D plans, he immediately became restless.

"It would cost 1256 million yuan per month, and a total expenditure of 1.5 million to 2.2 million yuan. That's absolutely not possible. We can't afford that much money."

It's important to know that developing FPV camera modules and FPV head-mounted display devices requires at least 2 million yuan in research funding.

Despite all our hard work, we've only sold 18 Wildcat remote-controlled toy cars, earning 8000 million yuan.

There is still a shortfall of 2 million yuan in R&D funding to reach 1.2 million yuan.

We can't possibly afford to fight a patent infringement lawsuit. I don't think we should even consider it!

Upon hearing this, the company executives present nodded slightly, realizing that they indeed couldn't afford to fight such a patent infringement lawsuit.

"But if we don't hire a lawyer to fight the patent infringement case, our chances of losing will be 100%!"

After a pause, General Counsel Xu Zhengming continued:

"If we lose the case, the consequences will be more serious than we imagine."

If the ITC International Trade Commission rules against us, it will be found that we have infringed on the patent.

The International Trade Commission (ITC) will not only require the removal of our Wildcat remote-controlled toy cars from shelves across the United States, but will also impose a huge fine on us.

If we don't pay the hefty fine, our company accounts in the United States will be frozen or deducted directly.

The Wildcat remote-controlled toy car, along with other future products, has been unable to enter the American market.

"Then we'll completely abandon the American market. Without Butcher Zhang, I refuse to believe we can't eat hairy pork."

Technical Director Zhang Guan said through gritted teeth.

However, in response to the words of the technical director Zhang Guan, the legal director Xu Zhengming shook his head and said:

"Things are not that simple. We lost the American market, which seems bearable, since we still have the global market."

But don't forget that the United States has signed intellectual property rights mutual recognition agreements with other countries.

Intellectual property rights in the United States are recognized by other countries.

The ITC's ruling that we infringed on patents, while theoretically unlikely to affect other countries, is still valid.

However, overseas distributors and dealers are not stupid. Due to risk control factors, they will take the initiative to remove our Wildcat remote control toy cars from the shelves.

After all, the United States has already ruled that the International Trade Commission (ITC) has committed patent infringement.

Traxxas subsequently initiated similar patent infringement lawsuits in other countries, with a near 100% success rate.

As distributors or dealers selling Wildcat remote-controlled toy cars, they also bear some responsibility.

So no matter how much they eat, they will eventually have to lose money to Torsais Company, so naturally they don't want to get involved in this mess.

Therefore, if we lose the case, the result will not only be the loss of the American market, but also, in effect, the loss of the global market.

Silence fell, a deathly silence descended upon the scene.

"American nuts are indeed quite insidious!"

If I'm not mistaken, it probably won't be long before Toss comes looking for me.

"Let me sell my company shares at a low price or transfer the technology patent for the Wildcat remote-controlled toy car to them at a low price."

After making a remark, Zhang Chi's eyes hardened.

When soldiers come, we'll block them; when water comes, we'll dam it with earth!

The United States thought they could get him to compromise and bow down with such a small trick, but Zhang Chi wanted to tell the United States not to be delusional!