4 ms·

In this particular case, I don't think the problem is patents (thought I do have a lot of problems with patents as a concept), rather poor business decisions by

by acabal 6y ago

In this particular case, I don't think the problem is patents (thought I do have a lot of problems with patents as a concept), rather poor business decisions by eInk. They are indeed using patents as originally envisioned: They have an effective monopoly on epaper displays. However their poor business decision of ultra-high pricing has prevented a serious market for their product from forming. Had they lowered their price per display, or done some kind of affordable licensing scheme with manufacturers, it's totally possible for them to have made tons of money while still allowing epaper displays to flourish in the market. But that's not what they did; who knows what kind of money they're actually making, but the fact that the epaper market is basically on Kindle life support isn't the patent's fault. (Edit: Perhaps Amazon had a hand in preventing wide adoption of epaper, in order to more effectively squash Kindle competitors?)

CrazyCatDog 6y ago
Yes—-there has got to be more to the story-otherwise they could hire a sophomore Econ major, learn about elasticity, and pull in exponentially higher earnings. I have seen contracts between large manufacturers where one pre-purchases exclusivity variants, like: 1) Exclusive licensing for x years 2) Exclusive licensing for x years after the first time buyer deploys tech not to exceed W years (usually 10) 3) Very limited sales/licensing to others This smells like (3) + (2) here.
gowld 6y ago
If eInk is undervaluing their business, why hasn't anyone bought the company and run it better?
- citizenpaul 6y ago
  You can't buy a business if the owner doesn't want to sell.
robinsoh 6y ago
> However their poor business decision of ultra-high pricing I work in the display industry and what I know for sure is that they can't make big 20", 32", 42" displays. Something about factory production issues so they're literally like hand making the big displays which to me seems like the reason why they cost so much. So I'm suspicious of your claim. Could you let us know which ultra-high prices you're referring to? What panel size? What DPI? What bin range and contrast range? Do you actually work in the industry and have knowledge of costs and pricing? > Perhaps Amazon had a hand in preventing wide adoption of epaper, in order to more effectively squash Kindle competitors? I'm sorry to be harsh but you sound ridiculous when you say that. And now I'm pretty certain you don't have industry knowledge. You do realize that Amazon spent hundreds of millions trying to scale up Liquavista to produce fast colour displays for the Kindle. It failed because again physics of electrowetting is complex especially when you go from handmaking 100 demo displays to trying to produce 1000 on a rolling production line. Maybe a billion and maybe then they could have succeeded but I guess Jeff had other cost issues or personal reasons that ended that.

by acabal 6y ago

CrazyCatDog 6y ago

Yes—-there has got to be more to the story-otherwise they could hire a sophomore Econ major, learn about elasticity, and pull in exponentially higher earnings. I have seen contracts between large manufacturers where one pre-purchases exclusivity variants, like: 1) Exclusive licensing for x years 2) Exclusive licensing for x years after the first time buyer deploys tech not to exceed W years (usually 10) 3) Very limited sales/licensing to others This smells like (3) + (2) here.

gowld 6y ago

If eInk is undervaluing their business, why hasn't anyone bought the company and run it better?

citizenpaul 6y ago
You can't buy a business if the owner doesn't want to sell.

robinsoh 6y ago

> However their poor business decision of ultra-high pricing I work in the display industry and what I know for sure is that they can't make big 20", 32", 42" displays. Something about factory production issues so they're literally like hand making the big displays which to me seems like the reason why they cost so much. So I'm suspicious of your claim. Could you let us know which ultra-high prices you're referring to? What panel size? What DPI? What bin range and contrast range? Do you actually work in the industry and have knowledge of costs and pricing? > Perhaps Amazon had a hand in preventing wide adoption of epaper, in order to more effectively squash Kindle competitors? I'm sorry to be harsh but you sound ridiculous when you say that. And now I'm pretty certain you don't have industry knowledge. You do realize that Amazon spent hundreds of millions trying to scale up Liquavista to produce fast colour displays for the Kindle. It failed because again physics of electrowetting is complex especially when you go from handmaking 100 demo displays to trying to produce 1000 on a rolling production line. Maybe a billion and maybe then they could have succeeded but I guess Jeff had other cost issues or personal reasons that ended that.