New Employees With an Annual Salary of 1 Trillion Won - Chapter 21

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This chapter was translated by Lunox Team. To support us and help keep this series going, visit our website: LunoxScans.com
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Chapter 21. Negotiation (1)

 

 

 

As soon as Steve Jobs left,

the President and Manager Kim almost simultaneously smacked my back.

 

“Hey! You asked for an autograph in that situation?”

“It was a request from the research lab members. I thought there wouldn’t be another opportunity if not now, so I acted rudely.”

“I thought you were normal, but you’re also missing a screw somewhere. You’re probably the only person in the world who would ask Jobs for a friend’s autograph.”

 

I had simply acted according to priorities.

I had to keep seeing the research lab members, but Jobs was someone I wasn’t likely to meet again if not now.

 

I could endure one moment of embarrassment.

If I could win over the research lab members’ hearts with just this kind of action, it was a profitable deal.

 

“Hmm… I see you got the autograph successfully?”

“Branch Manager, when did you arrive? I didn’t even know you were here.”

“I arrived at perfect timing, didn’t I?”

“But the contract Jobs mentioned earlier… is it related to patent licensing by any chance?”

“That’s right. Apple is showing considerable interest in our patents. However, we haven’t decided yet. We’re considering whether to contract exclusively or share with multiple companies.”

 

The Branch Manager’s voice naturally carried confidence.

Since we possessed technology that Jobs coveted, it was natural to be overflowing with confidence.

 

“What do you think, Employee Lee Jung-hoo? Would it be better to provide exclusively to Apple, or would it be better to contract with other companies as well?”

“Let me think about it for a moment.”

 

I briefly closed my eyes and concentrated.

Apple and Steve Jobs, the technology we possessed.

Once again, gears came to mind without fail.

Following the movement of the rotating gears, my thoughts naturally organized themselves.

 

“I think it would be good to conclude exclusive contracts with Apple for the integrated USB technology and compact HDD design. The remaining patents would be sufficient with multiple contracts.”

“Is there a reason you think that way?”

“First, Apple is the only company showing clear interest in our technology. Especially for compact HDD technology, other companies aren’t showing interest. For technology not to die, we must contract with places that want it and can utilize it.”

 

There was another reason.

It was because of the distinctiveness of Apple’s gear structure.

The current gears weren’t particularly large. But behind them, a massive structure unlike anything I’d seen before was stirring.

 

Though not clear, something definitely existed.

If that transparent structure became concrete, it would grow dozens or hundreds of times more than now.

If our technology entered that structure as gears, we could definitely gain great benefits.

 

“Your thoughts align with mine. Let’s proceed with the contract in that direction. Apple’s financial situation isn’t great, so the contract fee won’t be large, but if commercialized, the royalties will be substantial.”

“I think Nexpin can also grow through collaboration with Apple.”

“What do you think, President Cha? Would it be okay to conclude an exclusive contract?”

“I agree with Employee Lee’s opinion.”

“The phrase ‘technology chosen by Apple’ becomes a great advertising effect. It can also have a positive impact on Nexpin’s brand value increase.”

 

The Branch Manager nodded and said.

 

“Good. Then we’ll proceed with this contract under partial exclusive conditions with Apple. Instead, let’s make it possible to commercialize the remaining technologies through multiple contracts. Everyone worked hard.”

“Are you going to meet Jobs?”

“The negotiation seems like it will be long. Jobs, that person is famous throughout Wall Street for being difficult.”

 

The Branch Manager left the event venue with a determined face.

I couldn’t just keep watching his retreating figure.

The butterfly effect created by Jobs’ visit had begun.

 

“What? Why are people suddenly flocking here? President, what do we do?”

“Get it together! Let’s just do as we practiced.”

 

Visitors who had never shown interest in us before.

But for the single reason that Jobs had stayed at our booth for a long time, the atmosphere completely changed.

 

***

 

Branch Manager Kang Dong-ju was a veteran who had conducted negotiations with various types of people.

Private equity funds were ultimately organizations that made profits by buying and selling companies or shares.

Thanks to succeeding in numerous negotiations, he was able to reach his current position.

 

“Meeting in a quiet place, now we can finally have a proper conversation.”

“I’m curious how Tiger Fund found such a pearl. And in a small country like Korea, no less.”

“We were lucky.”

“Such opportunities don’t come from luck alone. You must have the ability to draw out your employees’ talents.”

 

Branch Manager Kang Dong-ju was also human.

He unconsciously smiled at the legendary figure’s praise.

 

“Thank you for the compliment. If there’s anything I did, it was just finding a pearl in the mud.”

“That pearl, wouldn’t you consider selling it to me? From what I found out, you purchased it very cheaply. Apple will offer you 5 times the price.”

“Pearls hidden in mud can be bought cheaply. But well-processed pearls make money just by being displayed.”

 

There was no reason to sell for just 5 times the price.

The royalty income to be earned in the future alone would be more than sufficient profit.

 

“You’re very firm. I’ll give up on the company. Instead, I want to covet the technology. I want exclusive licensing contracts for all design patents, UI patents, compact HDD and integrated USB patents.”

“I understand Apple turned profitable since last year, but I know the financial situation isn’t very comfortable.”

 

The Branch Manager precisely targeted the opponent’s weak spot.

The current Apple was still suffering from massive debt, and it was precisely because of this that the ousted Jobs could return.

 

“The success of the iMac has considerably eased financial worries. And I think exclusive licensing doesn’t necessarily require a large initial contract fee.”

“Please consider our position as well. Funds are ultimately organizations that move to maximize profits. I hope we can find a compromise that satisfies both Apple and the fund.”

 

The basics of negotiation were push and pull.

When tedious tug-of-war drags on, someone is bound to get tired first.

In the end, the side with persistence and patience took control.

 

Branch Manager Kang Dong-ju was confident he would win.

He had experience enduring push and pull tactics not just all day, but for days on end.

 

“Hmm, let’s organize this one by one. The integrated USB patent must proceed as an exclusive license contract. We also cannot give up the compact HDD patent.”

“Then how about this approach? Considering Apple’s financial situation, we won’t take a contract fee. Instead, we want to receive the highest possible royalty rate—would that be acceptable?”

“If we sign the contract but Apple doesn’t use these patents, there won’t be a single penny in royalty revenue… Are you really okay with that?”

 

Even at Jobs’ sharp question, the Branch Manager remained unshaken.

Rather, such questions only strengthened his confidence in the technology.

 

“That’s exactly why we need to set the royalty rate high. USB and compact HDD technology as exclusive licenses, design and UI patents as non-exclusive licenses, but we propose an overall royalty rate of 10%.”

“You’re asking for quite a lot. Surely you don’t really expect to get 10%? Let’s have a realistic conversation. I think 3% is very reasonable.”

 

The profit margin for electronics is usually around 20-40%.

Some products don’t even reach 10%.

In such situations, a 10% royalty would mean giving away more than half the profits to an outside party.

 

Of course, if the technology was absolutely essential, 10% wasn’t impossible.

But since Nexpin’s technology wasn’t that irreplaceably core, the Branch Manager brought out a new proposal.

 

“3% is too low. Especially when we’re not even taking a contract fee. How about this? 5% for the first two years after commercialization, then adjusted to 3% thereafter.”

“May I hear the reason for proposing such a structure?”

“I’m confident that when Apple meets our technology, the product will definitely succeed. The profit from 5% royalty for the initial two years won’t be large, but after two years, even just 3% royalty will generate sufficient revenue. This is a proposal based on long-term trust rather than short-term profit.”

 

Jobs fell into thought for a moment.

Over 50 design and UI patents, compact HDD, integrated USB patents.

These technologies were essential for creating the new type of MP3 player he envisioned.

And with no initial contract fee and 5% royalty, these were conditions that could pass through the board of directors without difficulty.

 

But one more condition was needed.

If that condition was accepted, he was ready to sign the contract willingly.

 

“Please add one condition. A clause giving Apple priority negotiation rights to contract first for all patents that Nexpin develops in the future.”

“I didn’t know you had such interest in our company.”

“Ideas like this don’t just come from nowhere. Only people and organizations with sharp minds can create them, and such organizations are destined to continuously pour out new ideas.”

“Good. We’ll accept that condition.”

 

Jobs stood up first and extended his hand.

Branch Manager Kang Dong-ju grasped his hand with a victor’s smile.

It was a smile he could make because he had a premonition that this contract would be a turning point in his life.

 

“Oh, but couldn’t you spare just one employee? Mister Lee, the person we talked with at the booth.”

“That would be difficult. He’s core personnel for our company.”

“Hmm… There’s no such thing as ‘absolute’ in this world.”

 

The smile disappeared from the Branch Manager’s face.

He knew.

Silicon Valley CEOs had the personality to get whatever they wanted by any means necessary.

So he needed to cut off that greed decisively, and he leaked one piece of confidential information.

 

“It won’t be easy for you. Setting aside CEO Jobs with his $1 salary as an exception, the highest-paid person at Apple would be the CFO. Usually around several billion won.”

“That’s the part I like least. Isn’t it unreasonable that people who only deal with numbers make the most money?”

 

Jobs had a strong tendency to prioritize engineers.

But when running a company, those who made more money were usually the ones playing with numbers.

 

“But Mister Lee makes more than that. Just in the last three months, his compensation exceeded $1.8 million, and he even holds patent shares. Can you really offer more than that?”

“Huh… No wonder. Technology like this doesn’t just come from nowhere. I’m starting to want to recruit not just Mister Lee, but you as well. If I gain control of the board, I’ll offer you the CFO position. Until then, I’ll put Mister Lee’s recruitment on hold.”

 

The Branch Manager quietly let out a sigh of relief.

Watching him, a victor’s smile appeared on Jobs’ lips.

 

‘As expected, he’s not an easy opponent.’

 

But the real winner of this contract was himself.

The news of signing a license contract with Apple would spread worldwide through COMDEX.

 

***

 

How could things change so much in just one day?

On the first day of COMDEX, our booth was literally empty with only flies buzzing around.

After Jobs visited, visitors increased a bit, but it wasn’t an unmanageable level.

But today the situation was completely different.

 

“Is this the booth of the company that signed a license contract with Apple?”

“Look there! The integrated USB prototype! Jobs personally contracted for this. Please explain it to us!”

“What’s compact HDD technology? I heard Apple signed an exclusive contract for it!”

 

Crowds pouring in.

Our staff alone couldn’t handle it, so even the private equity fund employees stepped in to deal with visitors.

Visitors could be handled with rough explanations even without professional knowledge, but the real problem was separate.

 

Electronics magazine reporters, industry officials, engineers from other companies.

For people like these, we had to step in directly.

Even two bodies wouldn’t be enough.

But the real problem was just beginning.

 

“Hey hey! Employee Lee, look over there!”

“What’s wrong?”

“The star of this event has appeared!”

 

I was getting irritated at not being able to maintain my routine.

In the midst of this, Manager Kim kept making distracting comments, and I unconsciously raised my voice slightly.

But the moment I looked up, I could immediately understand why Manager Kim was so excited.

 

“Bill Gates?”

“Yeah, is he coming to our booth?”

 

Another legend was walking toward us.

While I stood there dazed for a moment, Bill Gates had already stridden right up in front of us.

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This chapter was translated by Lunox Team. To support us and help keep this series going, visit our website: LunoxScans.com
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