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Last updated at: (Beijing Time) Friday, November 21, 2003

China's self-made EVD enters market

Now Chinese people can finally see movies with players featuring the core technology of China's own intellectual property rights as Beijing E-world Technology Co. Ltd. and two DVD manufacturers unveiled the Enhanced Versatile Disc (EVD), on November 18.


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Now Chinese people can finally see movies with players featuring the core technology of China's own intellectual property rights as Beijing E-world Technology Co. Ltd. and two DVD manufacturers unveiled the new-generation high definition, high fidelity video player Enhanced Versatile Disc (EVD), on November 18.

According to the introduction from the research and development department of the EVD, technology system, EVD has a definition 5 times higher than DVD (digital versatile disk) and can manage most of the formats of the compact disks in the market. An EVD can store an audio-visual program of about 110 minutes' long. In terms of sound effect EVD realized for the first time high fidelity and surrounding effect at the same time and also made a breakthrough in the world in the storage and playing of high-definition digital programs based on optical disk technology.

The successful development of EVD has provided a successful example for Chinese enterprises in developing the core and associated technology system with independent intellectual property rights, and cultivating and developing core competitiveness by exercising the rules of intellectual property rights.

Success example of own intellectual property rights
The move aims to reduce the drain of what domestic DVD makers consider exorbitant patent royalties they must pay to Japanese electronics conglomerates and also to avoid over-reliance on foreign technology.

"The DVD dispute makes our enterprises truly understand the implications of possessing our own intellectual property rights," Vice Minister of Information Industry Lou Qinjian said at the unveiling ceremony.

The government contributed 10 million yuan, or one quarter of R&D costs, in 1999 after nine big electronics makers, including Sony Corp and Toshiba Corp., pressured Chinese DVD makers to pay $9 in retroactive royalties for each player exported. The consortium charges 500,000 yuan in licensing fees and $2 in royalties for each player manufactured.

Hao is convinced domestic DVD makers will switch to EVD because royalty payments totaling 2.7 billion yuan, or $325.3 million, have eaten into their profits. Talks also are under way between domestic DVD makers and the foreign conglomerates to pay royalty for DVDs sold in China.

Up to 1.8 million EVD players will be manufactured in 2004 and production will be boosted to three million in 2005 and nine million in 2006, Hao said. There is doubt, however, among foreign analysts of the wide spread of EVD in the world.

EVD may not knock DVD from leading place yet
The Ministry of Information Industry will set up a task force this month to deliberate whether to adopt EVD as the new national industry standard, a ministry spokesman said. There was no timetable for a decision.

DVD is the current unofficial national standard. More than 100 domestic DVD makers produced about 30 million players last year, almost double the 2001 figure, state media said. China exported 20 million players in 2002, accounting for up to 70 percent of the global DVD market.

Reigning TV maker Sichuan Changhong is in the process of developing its own format and still considering whether to shift production to EVDs, company spokesman Liu Haizhong said. Only five of China's more than 100 DVD makers have signed up to make EVDs. SVA Electronics, one of China's biggest DVD makers with annual output of about five million, has started mass production, a company spokesman said. An EVD player costs up to 1,900 yuan, or $230, compared with an average of 800 yuan for a DVD player.

Success example of own intellectual property rights
The move aims to reduce the drain of what domestic DVD makers consider exorbitant patent royalties they must pay to Japanese electronics conglomerates and also to avoid over-reliance on foreign technology.

"The DVD dispute makes our enterprises truly understand the implications of possessing our own intellectual property rights," Vice Minister of Information Industry Lou Qinjian said at the unveiling ceremony.

The government contributed 10 million yuan, or one quarter of R&D costs, in 1999 after nine big electronics makers, including Sony Corp and Toshiba Corp., pressured Chinese DVD makers to pay $9 in retroactive royalties for each player exported. The consortium charges 500,000 yuan in licensing fees and $2 in royalties for each player manufactured.

Hao is convinced domestic DVD makers will switch to EVD because royalty payments totaling 2.7 billion yuan, or $325.3 million, have eaten into their profits. Talks also are under way between domestic DVD makers and the foreign conglomerates to pay royalty for DVDs sold in China.

Up to 1.8 million EVD players will be manufactured in 2004 and production will be boosted to three million in 2005 and nine million in 2006, Hao said. There is doubt, however, among foreign analysts of the wide spread of EVD in the world.

Sources: Agencies & People's Daily


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