MTL - I’m in Hollywood

Compared with yesterday's simple communication with Ian Gernier, the analysis of the causes and consequences of the sudden attack of the Ministry of Justice is more detailed.

The Judiciary's questioning is mainly manifested in two aspects. First, whether the high market share of Yahoo browser affects the healthy development and technological progress of the Internet industry, and second, whether the cooperation between Yahoo and Microsoft in browser pre-installation deprives users of freedom. The power to choose software.

Of course, under normal circumstances, no government department will blame a company for no reason, unless the company has caused damage to users' interests or peer companies.

The ‘bitter’’ that the Ministry of Justice launched this hearing was Internet companies such as At-Home and Excite that competed with Yahoo’s business.

The information in Eric's hands is specifically labeled At-Home, an Internet company that also runs businesses such as search engines and portals.

However, compared to Yahoo's huge volume, At-Home's market value is only more than 7 billion US dollars. Moreover, At-Home's business is more inclined to search engines, Microsoft's MSN portal is currently using At-Home's search engine tools.

In addition, the information also mentions that Microsoft not only participated in At-Home's early venture capital investment, but also held a 7% stake in the company, and Microsoft is also recently in contact with At-Home's board of directors in an attempt to acquire the company wholly. To develop its own search engine business.

Although Yahoo has been low-key in its expansion of the search engine business, Eric has never expected that competitors will remain unaware. Microsoft’s attempt to acquire At-Home is clearly not a whim.

Of course, the search engine business has a very clear winner-take-all rule.

Through these years of accumulation, Yahoo has come to the field of artificial intelligence in Internet search engines, and many competitors still use a very primitive and inefficient tree search mode. With technology ahead of the curve, Yahoo has spared no effort to continue investing in this business, and Eric has enough confidence to ensure that Yahoo's search business will be the last winner.

Moreover, the most critical point is that Yahoo has also accumulated a large number of patents in search engines because of its technological advancement. This is enough to form a patent barrier for many latecomers.

Now, since At-Home is actively jumping out, even if there is a clear shadow behind Microsoft, Eric will never mind pulling back.

In my heart, Eric turned to today's news report about the Ministry of Justice's questioning of Yahoo, only to find that the situation seems to be more serious than I thought.

Most media have either euphemistically or fiercely accused Yahoo of monopolizing the browser market, which has greatly affected their own development.

The AOL portal is arguably stated that web browsers should belong to the basic Internet service category. Therefore, this basic tool software should not have any tendency in itself. Yahoo has set the default home page of Yahoo! Browser as its own portal site, which is a very obvious unfair competition behavior.

The article in The New York Times requires Yahoo to completely abandon its monopoly on the patented technology of web browsers and share it with the entire industry to promote the rapid development of the entire Internet industry.

NBC's online news site even screamed at the Federal Justice Department's immediate antitrust investigation of Yahoo's browser to curb Yahoo's continued use of the software to squeeze the market and squeeze the space of other competitors.

All in all, the views of these media are basically that the excess market share of Yahoo!’s browser has seriously affected the development of the entire Internet industry and should be limited.

It is conceivable that once this view continues to spread, the Federal Ministry of Justice has taken substantial action on this kind of knot, then Yahoo's share price will fall.

Moreover, due to the media’s view that the entire industry will benefit from the pressure on Yahoo’s browser, Yahoo’s share price will fall, and the stock prices of other new technology companies of the same type will only rise again due to the opposite effect, so it will not affect the recent period. The Nasdaq index, which continues to rebound.

While Eric looked through the information, the staff was ready to connect to the video conference at the Yahoo headquarters in Boston.

After rushing through the information, Eric looked up and found that Ian Gurney in the call screen was also very dignified. He had to take the initiative to make a relaxed expression and clap the beater: "So, Ian, Let me talk about how you plan to deal with the two questions raised by the Ministry of Justice tomorrow?"

Ian Gurney didn't have much to say. He looked at the information in front of him and simply sorted out his thoughts. He said: "With regard to the first question, our response is that the Yahoo browser has a very high market share. Not only did it not hinder the development of the Internet industry, but it promoted the progress of the entire industry. It was Yahoo's first easy-to-use graphical interface browser that connected the chaotic Internet to the lives of ordinary people. Over the years, all COM The company directly or indirectly benefits from the unification of technical standards by Yahoo! Browser. If Yahoo did not do this at first, instead let the market have multiple Internet format standards, then the Internet industry will never develop so rapidly."

Eric nodded and asked, "So, the second one?"

Ian Gurney continued: "First of all, the Yahoo browser is completely free, so the Windows system comes pre-installed with the Yahoo browser, which does not incur additional costs for users. Secondly, the Yahoo browser can be uninstalled. Therefore, we do not deprive users of the freedom to choose. If they are dissatisfied with the Yahoo browser, they can uninstall the software themselves. In this regard, if the stalemate is formed, Yahoo can make some compromises, such as in Windows. During the system installation phase, add a prompt for users to load the Yahoo browser."

Eric finger silently tapped the table and thought for a moment, saying: "Ian, you should understand that their purpose this time is to hope that we can allow other companies to launch the same type of browser and compete with Yahoo. How are you going to respond?"

"We don't and don't have to compromise on this, Eric," Ian Gurney apparently prepared for it, saying: "Yahoo browser is enough to meet the needs of users. Open other companies into this field. In order to compete with Yahoo! browsers and realize their own advantages, these companies will only take the initiative to set differentiating standards, which will damage the entire Internet industry. Just as the entire federation has become accustomed to 110V AC, all household appliances are in use. This standard. Now, some people have to forcefully promote the 220V AC network in other countries, which will not form any healthy competition, and will only cause completely unnecessary waste of resources for the whole society."

Eric listened to Ian and said: "The last example of the voltage standard is very good. You can come up in court at the right moment tomorrow."

Ian Gurney showed some smiles and said, "I think so too."

Afterwards, everyone continued to discuss a lot of details, and until the end of the meeting, Eric was serious and said: "Since our competitors have tried their best to launch this hearing, then, at the same time, we also respond A counterattack must be made. Otherwise, Yahoo will only be considered weak and bully. Then there will be more companies jumping out."

The expressions that everyone had already relaxed have been put away.

Eric paused and paused. He continued: "About At-Home, although everyone knows that there is a shadow behind Microsoft, but since it jumped out this time, it should have the expectation of bearing the consequences. I just read it. At-Home's main business is the Internet search engine. Although Yahoo's patent system is mainly based on defense, it is enough for us to use it as a weapon of attack when necessary. Give you a week to collect At-Home violations of Yahoo! The evidence of technology patents is not only the search engine, but also the advertising business. I think they will definitely not let go of the model of imitating the Yahoo! Advertising Alliance. This time we will not only make huge claims, but also let them stop the violation of Yahoo technology. So, do you understand?"

The people in the two conference rooms all agreed, and Ian Gurney nodded his head, but said: "Eric, isn't it a rush in a week?"

Eric looked at the call screen and said: "I originally set up an additional patent management department for every company in the Firefly system. I have also reminded everyone of the importance of patents for the development of new technology companies on various occasions. In order to keep you focused on the patent trends of yourself and your competitors, don't tell me that you haven't collected relevant information on weekdays. If so, it is your failure."

"Of course we have, but the evidence can't be too complete," Ian G. Neill nodded. "And, if a lawsuit is filed, our team of lawyers must develop a detailed litigation strategy that takes time."

"You only have one week," Eric insisted. "And, it seems that I need to re-examine the work of the patent management departments of each company. Carly, write this down."

Caroline took a serious response and bowed down to write on her memo.

In the conference room in Boston, Ian Gurney couldn't help but smile.

He is confident that Yahoo's patent management department will not make any mistakes, but if other brother companies are caught off guard because of Eric's sudden attack, what happens, he will not be complained.

Eric ignored Ian’s thoughts and continued: “In addition, Microsoft is not going to launch its own digital music player recently?”

Everyone nodded, and Tina Brown, sitting next to Ian, took the initiative to say: "Microsoft's player is called Zune, and it will be released in the middle of next month. Yahoo has just done a special topic last week. I personally. The Zune uses Microsoft's WMA audio format, and Microsoft is said to be working with Warner Music to run an online music store."

In fact, in June, Sony has launched a digital version of the Walkman that competes with the Firefly Electronic Fireflyer, which uses Sony's exclusive ATRAC audio format, while Sony's online music store is also open simultaneously.

However, compared with Fireflyer, Sony's digital version of Walkman is far from being able to compare with the Fireflyer that has experienced three generations of technology in various basic functions, and this product has almost strict anti-piracy restrictions, users almost No audio content can be obtained from outside the Sony Music Store.

At the same time, Sony has once again demonstrated its inefficiency in its own side. Sony Records is for the benefit of its own department, and the music provided for the Sony Music Store is almost outdated.

At the most critical price point, the Sony Digital Walkman is even more expensive than the Fireflyer player.

Therefore, you can imagine the sales prospects of this product.

With the content cooperation between Firefly Electronics and EMI, the two major record companies, and the further promotion of Fireflyer players in North America and Europe, Fireflyer's monthly sales have exceeded 3 million units. The total sales volume in 1999 is likely to be It has reached 35 million.

In comparison, the Sony Digital Walkman was launched in June, and now it has not exceeded 300,000 pieces in total sales for more than two months. It can only be described as bleak, and it is not enough to pose any threat to the Fireflyer player.

In Eric's view, the biggest significance of the Sony Digital Walkman is to resolve the monopoly of the Fireflyer player. Whether it's the Fireflyer player or the Yahoo Music Store, there are competitors at this time, then the anti-monopoly censure of the Firefly system will be much less.

Compared with last year, this year's Fireflyer's Fireflyer player is based on 35 million sales. As the overall cost is further reduced, it will bring about 2 billion US dollars of excessive profits for Firefly Electronics.

In the face of such an attractive market, other technology vendors will naturally not give up, Microsoft has recently planned to launch its own digital music player.

However, unlike Sony's patent for the micro-camera module in exchange for the full set of digital music player patents from Firefly Electronics, Microsoft did not have this treatment, which means that Microsoft is destined to avoid the firefly electronics. Patent barriers.

After Eric and other Tina Brown finished, they bluntly said to Meyer: "Wait to contact Victor, since Gates and I play tricks, then don't blame me for letting Microsoft's Zune not be officially released. Let the Zune prototype be disassembled and analyzed as soon as possible to collect enough evidence."

After telling Meyer, Eric finally looked at the crowd and said: "Finally, there is another point. You must have seen the news today. In those people's eyes, Yahoo! browser seems to have hindered the entire Internet industry. The culprit of development. People always sympathize with the weak, so this view will obviously have a market. Once the Ministry of Justice has trouble to find us at this time, then Yahoo’s share price will definitely fall, but Other new technology companies will benefit from this. The entire Nasdaq market will not be affected, and the Justice Department will be unscrupulous. So we can't make these people too good, and everyone knows what our biggest advantage is? ”

Everyone showed a curious look.

Eric did not wait for everyone to express his opinion. He said: "Whether it is Wall Street or the new technology industry, I am worried that the Nasdaq index will start falling again. But we don't care. Whether it is Yahoo, Cisco, Amazon, etc., What we care more about is the long-term development of the company, not the momentary gains and losses of the stock price. So, since they are looking for Yahoo's troubles, let the whole Nasdaq market go bad luck. We originally planned to be in the next crisis. Only announced the strategy of not reducing and cutting expenses and reducing expenses to maintain the stock price. Then, there is no such restriction now, just right, I need a lot of money recently. So, starting tomorrow, the firefly system will publicly announce the reduction! ”