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PVI was/is essentially the only company that actually manufactures E-Ink screens. E-Ink was basically all-IP, and PVI was basically the only significant manufac
by frig 17y ago
PVI was/is essentially the only company that actually manufactures E-Ink screens. E-Ink was basically all-IP, and PVI was basically the only significant manufacturer to license the tech to manufacture the actual screens.
I'm inserting "basically" b/c it's been awhile since I looked at things in earnest and I don't want to make absolute statements I'm not 100% sure of, but I'd be 95%+ sure that "PVI was the only mass-manufacturer of screens based on E-Ink's technology."
What I was never clear on was which way the arrangement originated: did E-Ink specifically pick PVI and contract out the manufacture of the screens, or was it the other way around?
Either way this is basically the manufacturer and sole direct licensee buying out the licensor to:
- (1) get a long-term "discount" on licensing fees
- (2) firm-up the exclusivity of the PVI/E-Ink arrangement: now that PVI owns E-Ink it's very unlikely that E-Ink will license the tech to any other manufacturer, no?
The amount involved is probably a bargain: the demand for e-ink screens is probably going to go through the roof soon, so "locking-in" the license cost now is smart; it's also excellent timing, b/c given how much investment has been pumped into E-Ink for how long, and given the current state of the financial world, there's plenty of investors who'd probably be very happy with a relatively modest cash payout right this second (but who might have wanted more if the deal had been extended a few years back, and who might want more if the deal were extended a few years from now).
Hopefully someone better-informed on this than I am will step in and correct any errors in my summary and provide any additional background information they have.
NB: E-Ink is not the only company with "epaper" screen technology; I'm talking about E-Ink, not the general epaper market.