I bought a prison in the United States.

That page contained a detailed diagram of the parts, specifically the support connector for the washing machine drum.

The material is 1.2 mm cold-rolled steel sheet, and M4 screws need to be installed in the four connection holes.

Several data points and a few lines of annotations were marked in red next to the drawing.

"The scrap rate for this part is currently 12% on our production line."

"The main reason for scrap is tapping thin plates, resulting in incomplete threads, broken taps, and excessive burrs."

"The cost of each piece of scrap is $2.70."

"Based on an annual production of 800,000 pieces, the annual waste loss is approximately $260,000."

"This doesn't even include the assembly line downtime and rework costs caused by scrap."

Morrison turned to the second page:

"Your solution has been validated in our laboratory, and the scrap rate can be controlled below 0.5%."

"The locking torque meets the requirements, and the anti-loosening performance exceeds that of existing solutions."

He closed the file and looked at Ringo:

"Mr. Chen, General Electric would like to formally obtain a technology license for your solution."

"At the same time, we also hope that your factory can take on some trial production orders for connectors."

"Initially, we use small batches of verification parts for assembly line testing and durability testing."

"If the verification is successful, there will be larger production orders in the future."

The air in the office became very quiet, and the label of "curiosity" above Banks' head had turned into "focus".

Morrison's head was filled with "calculation," a state that a professional purchasing manager always enters when negotiating.

Lin Ge leaned back in his chair, pondering his next move.

General Electric proactively offered to purchase the technology license.

This means they don't just want to use this solution; they want to make sure that others can't use it.

This is a standard strategy for large companies: to lock in key technologies through purchase or exclusive licensing, preventing competitors from gaining the same advantage.

For them, it is much more cost-effective to spend money to buy the ownership of a solution than to give competitors the opportunity to use it as well.

But Ringo couldn't just sell the plan to them directly.

Because in 1984, this plan had not yet been formally patented.

Under the US patent law system, once technology has been publicly disclosed for more than a year, it can no longer be patented.

When Lingo publicly proposed the plan at the Chamber of Commerce meeting, the one-year countdown had already begun.

If he sells the solution to General Electric, General Electric can apply for a patent themselves, and he will get nothing.

"I agree to the authorization."

"But there is one condition: I must apply for the patent, and the patent rights belong to me. GE will only receive an exclusive license to use it."

Morrison's expression remained unchanged, but the "calculating" label above his head deepened slightly:

"Exclusive usage rights?"

"You mean even if you hold the patent rights, we are the only company that can use this solution during the agreement period?"

"right."

Morrison said:

"In terms of commercial effectiveness, it's the same as having a patent."

"The only difference is the legal form; for General Electric, it's the same."

Lingo said:

"It's different for me."

"I hold the patent, and once the contract expires, I can license it to other companies."

"Of course, GE can also choose to renew the contract."

"Patent rights are my long-term asset, and exclusive usage rights are the protection of your products."

Morrison and Banks exchanged a glance.

It was a very brief glance, so brief that without Lingo's special ability, one would not have noticed its presence at all.

But it told Ringo that Morrison was assessing whether the terms were worth continuing the discussion.

Banks' response was, "This condition is acceptable."

"I can accept this structure."

Morrison turned his head and said:

"But we still need to discuss the specific licensing fees and order prices."

"My original proposal was that GE would purchase the perpetual rights to the plan for a one-time price of $200,000."

"But if we follow your proposed structure, where you retain the patent rights and we only get a five-year exclusive right, I will adjust the amount to $3.5."

Lin Ge narrowed his eyes slightly.

$3.5 is just a drop in the bucket for General Electric.

For McLean County Correctional Center, it's just equivalent to their current monthly income.

Looking at the signs above their heads, this offer was clearly far from the other party's bottom line.

Lin Ge said calmly:

"$6 for an exclusive three-year license. That's my offer, and I won't budge."

"But I can add a clause to the contract that if GE discovers the application of the solution in any other product line during the exclusivity period, it will automatically acquire the right to use those applications without additional payment."

Morrison raised an eyebrow; he was doing the math.

Exclusive rights to use across product lines during the exclusive period.

They can use this solution not only on washing machines, but also on other home appliances such as refrigerators, air conditioners, and dishwashers, without paying extra.

This deal is still a good one for General Electric.

"it is good."

Morrison said:

"$6, three-year exclusive rights, automatic coverage across product lines, patent application and fees are borne by you."

"agree."

Morrison took a pre-prepared draft contract from his briefcase, wrote a few handwritten revisions on it, and then pushed it in front of Ringo:

"This is a draft; the official contract will be sent to you next week."

"The $6 licensing fee will be paid within ten business days of the contract being signed."

Lin Ge glanced at the draft.

The handwritten corrections were in Morrison's handwriting, with each number written very clearly.

"And then there's the order book."

Banks interjects:

"We need your factory to produce a batch of prototypes, approximately the first 2000 connectors, for assembly line testing."

"If the quality is up to standard, we will place 20,000 orders per month, at a price of $4.50 each."

"The advance payment is 30% in accordance with GE's standard new supplier terms."

The typical prepayment to new suppliers is 30% to 50%.

But for a prison factory, this condition is already quite good.

In particular, if the continuous orders reach 20,000 pieces per month, this alone can bring in a total order amount of $108 million per year.

Adding the interest income from the advance payment period will greatly improve the overall cash flow of the prison.

Moreover, having General Electric as a customer significantly lowers the trust threshold for other potential customers.

"Can."

A formulaic smile appeared on Lingo's face:

"The delivery time for the first batch of prototype parts is four weeks. We need to adjust the molds and train the operators. The delivery cycle for mass-produced parts will be shorter."

Banks raised an eyebrow:

"Four weeks? Your current equipment can go that fast?"

"We now have two new stamping presses that are being tested, and together with the old machine, the General Motors order is already in production."

"We can produce more prototypes by simply adjusting the schedule; we have enough prison labor resources."