Ten color TV manufacturers from China have set up a joint venture company in Shenzhen to confront the American ATSC standard.
The new company is called Zhong Cai Lian Science and Technology Co., Ltd. Each of the ten Chinese TV manufacturers invested CNY1 million in the company which is expected to be not only responsible for negotiation with the overseas patent owners, but also creating China's color TV battery patent. Fan Wenjian, vice president of Shinco, has been appointed as the legal representative of the joint venture company.
The United States Federal Communications Commission said that from March 1, 2007, all digital TV sets which are bigger than 13-inches and exported to the United States must conform with the ATSC standard and Chinese color TV manufacturers need to pay a US$23 patent fee for each of their TV sets exported to the U.S market.
As a result, Chinese TV manufacturers have to withdraw from the market where they have made a lot of efforts to develop and so they hope this new company will give them more fighting power.