Reborn in 1977

#732 - Gossip

Chen Fan, hurry back, and bring back Zhou Zhengdong and Zhou Yali's luggage, as well as the two little monkeys that Zhou Yali was always thinking about.

More than a month passed, and the little monkeys grew a little.

But golden monkeys are not big to begin with, and they really only grew a little bit, still small and exquisite, and adorable, captivating Shen Xueyi, who saw the little monkeys for the first time.

Dinner was at the Jiang family's house, although Chen Fan's cooking skills were the best, he couldn't be allowed to cook today.

Before officially getting married, his visit could only be considered as a guest, only after getting the marriage certificate would he be family, and it wouldn't be too late to let him take care of things then.

Besides him, the best cook was Jiang Lili.

Today, Jiang Lili was the head chef, with Jiang Tian Tian as her assistant, the two sisters cooperated tacitly, creating another reunion dinner.

Unlike the noon meal where Zhou Zhengdong was constantly chatting with Fourth Master Lu about Qin, chess, calligraphy, painting, and customs of the Republic of China, and Chen Fan was ignored, Jiang Heng also brought Chen Fan into the conversation, discussing the American textile market with Zhou Zhengdong.

Zhou Zhengdong drank the osmanthus wine that Chen Fan had conveniently brought over and said to Jiang Heng, "I understand what you mean, you want the cotton mill's products to be exported to earn foreign exchange, right?"

Jiang Heng nodded and said with a smile, "To be honest, almost all production units in the country want to export and earn foreign exchange, earning foreign exchange can not only improve our production capacity, but also build a reputation and obtain more resource allocation, our cotton mill is naturally no exception."

Zhou Zhengdong put down his wine glass and looked at him with curiosity, and said, "In-law, I have a question, I don't know if it's convenient to ask."

Jiang Heng spread his hands, "The cotton mill is not a confidential unit, everything can be said openly, please ask."

At this moment, Chen Fan suddenly put down his chopsticks, looked at Jiang Heng seriously and said, "Uncle Jiang, I must refute this sentence of yours."

When Jiang Heng heard this, he was not angry, but showed a bit of curiosity, "Is there any problem?"

Chen Fan looked at Zhou Zhengdong, turned his face and said, "Uncle Jiang, you may not be very clear, in foreign countries, almost all factories will not be completely open to the public, only finished products can be opened, and absolutely not all production lines, let alone show their laboratories to outsiders.

Because these places are the absolute core of a production enterprise. In foreign countries, all production technologies are valuable, which is the so-called patent.

Let me give you an example, for example, if Yunhu Cotton Mill produces a brand-new fabric, and this fabric is particularly popular, then this fabric belongs to the patent of the cotton mill. After mastering the patent, other factories cannot produce this fabric again, unless they obtain a patent license certificate issued by the cotton mill.

And after the cotton mill masters this exclusive patent, it can obtain huge profits by producing this fabric, on the contrary, if the patent is leaked, and other manufacturers register and produce it first, then even the cotton mill itself cannot produce this fabric again.

This is patent protection."

After listening to Chen Fan's explanation, Jiang Heng frowned, "What you said is a capitalist approach, right?"

Without waiting for Chen Fan to speak, he continued, "It's not like this in China. I remember that the two cars you designed for the machinery factory were taken away by the Ministry of Machinery Industry, and any factory in the country can ask for drawings and produce these cars.

Our cotton mill is the same. Currently, our spinning and weaving technology are all technologies issued by the Provincial Department, and technicians have been sent to guide us, so that the cotton mill can gain a foothold and grow stronger.

If everyone cherishes their own things, how can society develop?"

Chen Fan smiled helplessly and could only explain, "I'm talking about foreign countries, if foreign customers come to visit, don't show them everything."

There was no way, the current social situation was like this, what Jiang Heng said was the truth, if anyone didn't share technology, then they would be going against the tide, and the unit leader would be criticized, and after that, they would have to contribute the technology.

Before, Jiang Heng and several leaders of the Provincial Department went to inspect the production of down jackets, and they justifiably broke into the door and blatantly asked for production technology, and the other party respectfully offered it with both hands.

If they didn't give it, when the leaders of the Provincial Department went back, they would send a letter to the other party's Provincial Department in the name of the unit, or even send a telegram to the Ministry of Light Industry, and many people would suffer.

It was this habit that caused many traditional crafts in China to be stolen after entering the 1980s.

The reason why it was able to gradually change was after China joined the WTO after the new millennium, and the export economy skyrocketed. In order to be reasonable and compliant, it had to cater to international rules and began to pay attention to patents.

So at this time, Chen Fan was also a little bit dumbfounded when facing Jiang Heng, who was full of confusion.

This was still an old college student who had received higher education, and it was conceivable how stubborn those cadres who started from humble beginnings would be.

Fortunately, Jiang Heng had received higher education after all, and his thinking was more receptive to new things. After hearing Chen Fan say that it was a foreign rule, he stopped arguing and turned to look at Zhou Zhengdong, although he didn't say anything, the meaning was obvious.

Is this really the case?

Zhou Zhengdong would naturally not tear down his nephew's stage, and the fact was indeed so.

He grinned and said, "That's indeed the case. Our family has a trading company that has been engaged in international trade for many years, and we have also been involved in patent disputes a lot. This is also one of the reasons why I chose law as my major in the first place."

That is to say, once a patent dispute is caused by this product, all legal responsibilities shall be borne by the manufacturer, and the manufacturer shall compensate for our losses caused thereby."

After Zhou Zhengdong explained to him, he said, "If I want to purchase your cotton mill's products now, then similarly, you will also need to provide patent certification documents.

However, there are currently no relevant laws in China, and even patent certification is not available. Obviously, you cannot provide it, then I can only require the inclusion of relevant disclaimers in the contract to exclude our legal risks."

Chen Fan, listening from the side, couldn't help but twitch his lips. What Zhou Zhengdong said wasn't inherently wrong, but back in the 80s and 90s, some foreign rogues exploited the lack of awareness of intellectual property rights in China, setting traps for domestic companies and causing significant losses to many organizations.

You have to understand that many old state-owned and collective enterprises were already struggling to survive due to unfamiliarity with market rules, outdated products, and chaotic management.

When they fell into these traps, it wasn't just the final straw that broke the camel's back, but a massive boulder.

Factories closed down, employees were laid off, and many couldn't even get severance pay. It was a situation where no one would answer their cries for help.

But what could be done?

Even the deputy director was at a loss when trying to regulate enterprise technology patents. What could Chen Fan do?

At most, he could write a few articles on this topic in the future, both as a realistic portrayal and a warning, hoping to make some leading cadres more cautious.

Some people might ask, since there were no relevant regulations in China, why not openly imitate foreign products?

In theory and practice, there was no problem with that. In fact, in the 1990s, many Chinese products were directly copied from foreign ones.

Those who could copy domestic products would naturally not give up on foreign products.

Moreover, relevant laws were already in place at that time.

However, it was useless!

Before intellectual property legislation, these products could only be sold domestically. No foreign merchant would purchase them because once they left the country, they had to abide by local rules, and the patent holder would pursue legal action if you dared to buy them.

And after the legislation, these products had a professional term: "smuggled goods"!

Smuggled in China, still smuggled abroad, they couldn't be brought to the table, and exposure would lead to prosecution. It was that simple.

Lightly shaking his head, Chen Fan raised his glass, accompanying his uncle and future father-in-law in a drink.

After a glass of wine, Jiang Heng pondered for two seconds and said, "I understand what you mean. I'll compile a list of products later, and when you come next time, see if there's anything suitable."

Zhou Zhengdong didn't refuse and readily agreed, "No problem."

At this moment, Chen Fan suddenly smiled and said, "Actually, there's a way to solve the patent issue very well."

The two looked at him together, "What way?"

Chen Fan turned to look at Zhou Yali, who was chatting happily with the two sisters and Shen Xueyi, then turned back, lowered his voice, and said, "For example, Uncle, after you return to the United States, have Yali set up a company. You decide the business scope, but it should include clothing design and manufacturing.

Then, I'll have someone draw the designs of the clothes produced in Lujiawan and send them to you…"

The rest didn't need to be said.

Zhou Zhengdong slapped his thigh and chuckled, "I know the rest. Register the design drawings for appearance patents, and then, in the name of this company, place production orders with the Lujiawan Garment Factory. At that time, the patents will all be my own, so of course, there's no need for you to provide patent certificates, and there's no need to add any risk clauses."

He turned to look at Jiang Heng, "Actually, you can also adopt this model. You only need to register a company in a member country of the World Intellectual Property Organization, and then operate in the same way to resolve the patent issue."

Jiang Heng frowned slightly, "Registering a company abroad?"

He spread his hands, "We don't have that authority!"

Zhou Zhengdong had learned about the situation of domestic units during this period. One is one, two is two. Two cannot do the work of one, and one cannot replace the functions of two.

Hearing Jiang Heng's words, and thinking about the reality, he couldn't help but frown slightly, sighed, turned to look at Chen Fan, and said softly, "It seems that reform is very necessary."

A strange expression appeared on Chen Fan's face.

Of course, he was also clear about the reality, but weren't many people unaware of how to reform? In another year or two, this current situation of one is one and two is two would be broken.

Snatching other people's jobs seemed to have become a shortcut for the reform of many factories.

I make machines, and I can make textile machines, so it's okay to start a textile factory, right?

I'm from a meatpacking plant, and I have a lot of meat at home, so can I start a cannery?

In this way, some well-performing units could even build a self-sufficient industrial chain later, which was also a major feature of the era.

Jiang Heng raised his glass and drank, feeling much better.

Although the cotton mill couldn't directly register patents, getting Zhou Zhengdong's purchase commitment was also a great thing. At most, a risk clause would be added to the contract. Anyway, he knew the situation of his own products very well and wasn't afraid of causing patent disputes.

Moreover, the Lujiawan Garment Factory and the cotton mill had a deep cooperative relationship. Cooperation between the Zhou family and them was equivalent to indirect cooperation with the cotton mill… The Lujiawan Garment Factory was a collective enterprise without direct export rights, so the cotton mill might have to come forward to sign the contract at that time, and the import and export company would have to leave some foreign exchange quota for the cotton mill!

Just as Jiang Heng was drinking and daydreaming, Zhou Zhengdong put down his chopsticks and asked softly, "In-law, I see that many of your units are competing to export and earn foreign exchange. Are there any benefits in this?"

Jiang Heng put down his glass, looked at him, and smiled, "Of course, there are benefits. The factories that can export will be given priority by the superior units. The most advanced equipment, the best technology, and even the talents who graduate from universities will be given priority. There are many benefits."

Zhou Zhengdong said "Oh" and then asked, "What about foreign exchange? Do you have the right to dispose of it?"

Jiang Heng shook his head gently, "No, we don't have that. However, if it is a foreign exchange-earning unit, priority will be given to approving the application for the use of foreign exchange."

After a pause, he said thoughtfully, "I did hear a saying, but I'm not sure if it's true."

He looked at Zhou Zhengdong and said with a smile, "It's also considered gossip. I heard that many foreign exchange-earning units are reporting the situation to their superiors, hoping to return a portion of the foreign exchange earned from exported products. The specific situation is not known to be true or false, but that's what they all say.

If this news is true, then there will probably be more units hoping to earn foreign exchange. After all, many advanced equipment need to be purchased with foreign exchange. If you can control the foreign exchange yourself, the benefits will be even greater."

Hearing this, Chen Fan suddenly remembered that the foreign exchange retention system seemed to have been implemented in August of this year (1979).

As for the retention ratio…?

Chen Fan tapped his head and began to search for information with his clever brain.

If he remembered correctly, the retention ratio for remittances from overseas Chinese was 30% to 40%, and the retention of non-trade foreign exchange was also this ratio, while trade retention was 25%. Some border areas could retain half, which was 50%. The happiest ones were the southern, Tibetan, and special economic zones, which could retain the full amount.

Later, in 1986, a portion of the foreign exchange retention system was revised, allowing local foreign exchange-earning units to retain 50% of the quota. It was from that time that all units were proud of being able to earn foreign exchange.

Chen Fan pondered to himself, holding his wine glass.

So, what form of foreign exchange earning is his novel export? Trade or non-trade?

Anyway, no matter which one, he could retain at least a quarter.

Since the little Japanese guy wanted him to write a new category, he would submit the manuscript after August.

The sales of comics and novels were much higher than serious literature, and with the other party promising him the most favorable contract treatment, wouldn't he easily earn several million US dollars, to be worthy of his hard work in moving the little Japanese guy's works?!

Huo huo huo, at that time, he would easily hold tens of millions of US dollars in his hand, which would be so cool!

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