Cross-license agreement

The Suzuki Group Board of Directors meeting was a bit astonished when they heard the Chairman presenting the proposal for KiShin's cross-license of CD ROM.

Some board members disagreed, some agreed, and others remained neutral. However, Vice Chairman Shito was evidently disapproving. He stated, "I don't think there's a need to consider this. KiShin is our competitor, and this cross-license will only benefit KiShin instead of us."

Some board members initially agreed, but most of them shifted their stance after hearing Chairman Shiro's subsequent remarks.

"I believe there's no harm in the proposal, considering the technological aspects, such as the 'Method and Apparatus for recording information on an optimal disk,' among others. Some of KiShin's CD ROM patents could prove valuable for our products, including the upcoming DVD jointly developed by Philips, Panasonic, Toshiba, and especially us, Suzuki," Chairman Shiro stated with a serious expression.

Vice Chairman Shito and other dissenting board members were left speechless by Chairman Shiro's explanation. When Vice Chairman Shito attempted to counter Chairman Shiro, the latter just stared at him and remarked, "Even if you don't agree, there's not much choice. If we reject the proposal, we'll end up paying royalties to KiShin for CD ROM technologies inevitably used in DVD technologies, as they hold patents in this area."

Upon hearing this, some board members experienced mixed feelings—some frowned, others furrowed their brows, while some remained indifferent.

Chairman Shiro's statements seemed to make sense. It appeared that the Suzuki Group would only benefit from agreeing to KiShin's cross-license, especially considering that the DVD product promised greater value and profitability compared to video game consoles, as perceived by investors and board members.

As Vice Chairman Shito persisted in his belief against agreement, he was silenced by Chairman Shiro's assertion, "Vice Chairman, you should prioritize the well-being of the Suzuki Group and understand what is best for our corporation."

Vice Chairman Shito, noticing limited support in the board of directors, could only grit his teeth as they unanimously agreed to the cross-license of KiShin and Suzuki CD ROM patents.

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In Tokyo's Minato Ward, KiShin's new building was significantly more spacious, complete with an adjacent parking lot.

The interior housed a comfortable workspace for employees, along with amenities such as a restaurant and café—similar to the building KiShin had in the Toshima Ward.

The workspace at KiShin offers employees and workers a sense of freedom and a relaxed atmosphere, in stark contrast to many other corporations in Japan that currently impose pressure and overtime on their workforce.

When employees or workers proudly talk about KiShin's workspace to their friends, they are often met with disbelieving looks. Having such a company in Japan seemed almost impossible. However, this uniqueness sparked curiosity among friends of KiShin employees or workers, leading to a growing influx of people visiting KiShin headquarters to apply day by day.

Some of them were programmers from other corporations, and upon proving their skills, they were hired by KiShin.

As days passed, KiShin's workforce experienced steady growth. The strategic decision to have KiShin HQ located in the prosperous Minato ward of Tokyo began to show its advantages.

The talents joining KiShin contributed to the company's advancement and efficiency across various departments.

Meanwhile, in Shin's new spacious, exquisite, yet neatly arranged office, adorned with KiShin video games and anime character figurines on shelves along with some books, Shin sat comfortably in an office chair. He had just received a report confirming Suzuki's agreement with the terms of the KiShin CD ROM cross-license.

Shin smiled, confident that the Suzuki Group wouldn't resist and would agree, considering that most of the CD ROM technologies patented by KiShin were crucial for the DVD development involving Suzuki and three other companies.

Despite lacking a choice in the CD ROM technologies, as Suzuki Group held the majority of patents in the 1980s, Shin had to cross-license with Suzuki. This allowed KiShin to utilize Suzuki's CD ROM technologies in their latest KS1 video game console.

After a while, Shin proceeded to the conference room. The new room was significantly more spacious, featuring a round table. The executives were already seated around it. Shin walked in and took the central seat, prompting the executives to respectfully and formally adjust their positions.

Unlike before, the release of the KS1 was not as confidential this time. With just a few weeks remaining until the launch, excitement surged through the executives. The anticipation of announcing KiShin's latest products fueled their enthusiasm, foreseeing profitable returns for the company.

Shin smiled at the executives' excitement and expressed, "Firstly, I want to thank each one of you for the hard work you've contributed to the company. Without all of you, KiShin would probably be facing even tougher challenges than it already is."

The KiShin executives felt flattered by Shinro Suzuki's words, and one of them responded, "Hehe, we should be grateful to the chairman for giving us this opportunity."

"It's the other way around, Chairman. Without you, we'd probably be struggling."

"A person of Chairman's stature shouldn't praise us too much, or we might get too comfortable and grow complacent."

Shin smiled as he observed some executives attempting to reciprocate the flattery.

Following the discussions, Shin stated, "With the impending release of the KS1, the prices for our KES, SKES, and their video games are expected to be further reduced. Therefore, starting today, we will lower the prices of the two consoles to boost sales before the KS1 launch."

The executives unanimously agreed with Shin.

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Meanwhile, at Tora Electronics, President Taro Ikeda, accompanied by Itori Tanaka and the executives, became aware of the Suzuki Group's agreement with KiShin regarding the cross-license of CD ROM patents.

Given that Tora-Suzuki was developing their video game console in CD format, they had already anticipated KiShin's next moves—a CD format video game console. The timing of KiShin's announcement for the release of their new video game console was still unknown.

Initially, they assumed KiShin would take its time in the development process. However, they received intel indicating that KiShin actually planned to release their new video game console soon.