Shenzhen YEHENG Electronic Co., Ltd.



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U disk is free again: the patent of luco has expired

Time: 2019-12-05 10:21:51

Author: 深圳业恒电子有限公司


U disk is an indispensable product in our work and life, but do you remember / know the U disk patent dispute?

In fact, few people realize that "U disk" is not a product name, but a trademark registered by a company. This is the company that invented the first flash disk in the world and won the global basic invention patent of flash disk - luco technology.

This is regarded as the only original invention patent achievement belonging to Chinese people in the field of computer storage for 20 years. It is the core advantage of luco's founder and the foundation of patent operation business, as well as the main source of its performance, but it also causes great controversy.

For so many years, luco has been relying on this "money tree" to eat its roots, and now it has failed.

At present, Longco has two wholly-owned subsidiaries, Shenzhen Longbo Technology Co., Ltd. and Netac Technology (Hong Kong) Limited (Hong Kong Longco).

According to the 2018 annual report disclosed by luco on March 13, the core basic invention patent of luco "flash electronic external storage method and device for data processing system" is applied for on November 14, 1999, and the expiration and termination date of patent right is on November 14, 2019, i.e. one month ago.

In 2018, the patent licensing revenue of luco's patent operation business was 36.2926 million yuan, a year-on-year decrease of 10.27%, while the gross profit rate was still 100%, while the total net profit of luco in that year was 64.4966 million yuan, that is, only U disk licensing brought 56% profit to luco.

In fact, luco did not fail to see the problem, but has long acknowledged that there are no effective measures to fundamentally solve the risk to the company's operation after the expiration of the U-disk patent. Moreover, the company's patent is mainly concentrated in the traditional mobile storage fields such as flash memory, and has no achievements in the fields of cloud storage and mobile interconnection.

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