Chapter Forty-Four: Negotiation

“Then I eagerly await Mr. Wei Hua’s arrival! By the way, forgive my boldness—could the three of you share something about your negotiations with Matsushita Corporation? I am quite curious! After all, Matsushita is one of Japan’s most renowned enterprises, far beyond the reach of any family business.” Kinoshita Heiji remarked.

“It’s nothing much,” Selene replied lightly. “We’ve recently developed a new technology patent, which has received excellent responses in both the American and European markets. Matsushita also invested heavily in research for this technology, but we were the first to achieve results. They see great prospects in it, so they invited us to negotiate, to see if we could cooperate.”

“Is it the VHS-format video recorder technology?” Kinoshita Heiji inquired.

“Yes, that’s exactly it! I didn’t expect you to be familiar with this technology,” Jessie chimed in.

“How could I not know about it? Not only does Matsushita see the immense potential of this technology, but several other major Japanese companies do as well—including ours. I dare say its prospects are no less promising than your company’s cassette-style gaming technology; it will change the way we experience entertainment, especially in the film industry. This technology is vital. If possible, we would like to have the exclusive sales rights for this product in Japan, with a cooperation model similar to the cassette gaming machines. What do you think?” Kinoshita Heiji asked the three women.

“Mr. Kinoshita, we cannot answer you just yet. You must understand that our negotiations with Matsushita have not begun. Cooperation with Matsushita is necessary; you know how vast the future market for VHS-format video recorders will be. We cannot cover all regions or meet all market needs on our own, so we must seek partners. Matsushita is one of Japan’s most prominent corporations—strong in both technology and capital, with formidable enterprise strength. They are an ideal partner. We anticipate that Matsushita will propose to buy out the patent, but we will not agree to such terms. Our plan is to license usage: Matsushita will use our patent and pay us royalties, and we will grant them exclusive rights to the Japanese market. Therefore, your proposed cooperation is unlikely to come to fruition,” Selene explained to Kinoshita Heiji.

These negotiation terms were set by Wei Hua, whose intention was to quickly amass wealth by leveraging Matsushita’s powerful capabilities to produce the maximum number of products and gain the highest profits. Wei Hua knew that after a decade or so, VHS-format video recorders would be replaced by VCDs, followed by the era of DVDs. Upon hearing Selene’s explanation, Kinoshita Heiji realized that the cooperation he hoped for was no longer possible. The technology was now in the hands of Excellence Corporation, and Matsushita would have to yield to their plan if they wanted a share of the profits; yet Matsushita would never let such a golden opportunity slip away.

Kinoshita Heiji liked money, but he was not greedy. In the past two years, the Kinoshita family’s fortunes had greatly improved. Their convenience foods were popular in Japan, earning substantial profits, and by acting as agents for cassette gaming machines, the family had made a fortune. One cannot be greedy; greed breeds aversion. From his understanding of Wei Hua, Kinoshita Heiji knew these terms must have come from him. Wei Hua had his reasons for not choosing to cooperate with the family. If the family insisted on cooperation now, it would surely affect future relations. Kinoshita Heiji was not foolish; Wei Hua was a young man whose future achievements were immeasurable. He would not destroy future opportunities for the sake of a moment’s petty gain.

“No matter! If this cooperation doesn’t work out, there will be another opportunity. With Mr. Wei Hua’s talents, I am sure we will have many chances to work together in the future. As long as Mr. Wei Hua does not forget to look after the Kinoshita family when the time comes,” Kinoshita Heiji graciously accepted Selene’s explanation.

“Yes, you are right, Mr. Kinoshita. We’ll have plenty of opportunities to cooperate in the future; missing this one is no loss. Our visit to Japan isn’t only for the negotiations with Matsushita—we have other matters, and we will need your assistance,” Mary continued.

“Oh? If there’s anything I can help with, please tell me, Miss Mary,” Kinoshita Heiji replied.

“It’s like this,” Mary explained, “the American economy is currently in decline, but Japan’s economy is soaring. The main business of Excellence Private Investment Company is financial investment. Although we have invested in some real industries, the stock and futures markets remain our primary focus. The Tokyo investment market is very attractive to us now, so we have decided to open a branch in Japan. This time, we’ve brought five hundred million dollars in capital to invest here. We need your help in finding a suitable office location and someone to guide Jessie through the procedures for setting up the company.”

“No problem! Tomorrow, I’ll have my niece, Kinoshita Yuri, accompany Miss Jessie to handle all the formalities. She studies law and is very familiar with Japanese regulations; I am confident she can solve any issue Jessie may encounter. As for the office space, rest assured—I will find something suitable for you as soon as possible,” Kinoshita Heiji assured them.

The next day, negotiations between Excellence Private Investment Company and Matsushita Corporation commenced at Matsushita’s headquarters. As Wei Hua had predicted, Matsushita’s representatives proposed to buy out the VHS-format video recorder patent. Selene and her companions flatly refused their request. The first day’s negotiations ended quickly; after a brief tour of Matsushita’s headquarters, Selene and her companions, along with their bodyguards, left the headquarters in a Kinoshita family car.

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