Shinco, Skyworth, Changhong and SVA have stopped exporting traditional DVD products because of the high patent fees collected by overseas enterprises.

Chinese domestic enterprises do not hold any of the core-patented technology so they can pay royalties as high as $20 to foreign firms for each DVD. As a result, the disk manufacturers have seen low profits, and feel they have no choice but to cease exporting these products. The largest of the traditional DVD manufactures are either adjusting their exports structure, desperately seeking a means out of the industry, or have gone bankrupt. In a short period of five months, thirty DVD enterprises have gone bankrupt in the Bao'An District of Shenzhen alone.

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