http://www.bloomberg.com/apps/news?pid=20601087&sid=aejDe_A8z4aw&refer=home

Excerpt:


"April 10 (Bloomberg) -- Funai Electric Co. (http://www.bloomberg.com/apps/quote?ticker=6839%3AJP) won its bid to block U.S. imports of high-definition televisions by Vizio Inc. after a federal trade agency said the TVs infringed Funai’s patent.
The U.S. International Trade Commission issued the order today after reviewing the case won by Funai before an administrative law judge. If Vizio wants to continue to import the TVs while the ban is reviewed by President Barack Obama (http://search.bloomberg.com/search?q=Barack+Obama&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1), it must post a bond of $2.50 for each television, the agency said. The underlying patent case will be reviewed by an appeals court that specializes in U.S. patent law."

So, all Visio has to do is raise the price of the sets by $2.50. I can't see that being a huge problem.

Vizio sells about 800K TVs per quarter, ~ 3.2M/year. That amounts to an annual licensing fee over $8 Million.

http://www.vizio.com/about.aspx?cid=3267&id=1206

So, all Visio has to do is raise the price of the sets by $2.50. I can't see that being a huge problem.

That only works while they appeal. They would not be fighing it, if it was as simple as you make it out to be.

That only works while they appeal. They would not be fighing it, if it was as simple as you make it out to be.

LG reports its profit margin on TVs is ~ 2%.

http://uk.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUKSEU00013620090109


If Vizio is anywhere near LG's operating profit margin, then a $1000 TV, nets Vizio $20. $2.50 of $20 is a licensing fee of about 12%. If its a 'fixed fee' it could be far worse if the TV are in the lower price range.

LG reports its profit margin on TVs is ~ 2%.

http://uk.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUKSEU00013620090109


If Vizio is anywhere near LG's operating profit margin, then a $1000 TV, nets Vizio $20. $2.50 of $20 is a licensing fee of about 12%. If its a 'fixed fee' it could be far worse if the TV are in the lower price range.

Another thing that this situation may be exposing is that Vizio probably has not done much, if any, original software design in house. They have never been an R&D operation.

Another thing that this situation may be exposing is that Vizio probably has not done much, if any, original software design in house. They have never been an R&D operation.

Yes. When you put our posts together you can estimate that:

Vizio net profit of $20 per TV but sells 3 Million TV a year gives them net income of $60,000,000 per year. Net could mean all assembly costs are all paid for: parts, labor, taxes, transport etc.,

Not bad net income for company of 100 employees. IF they were all paid equally, which likely they aren't, that's estimated of $600,000 income per employee.