News tonight: Trek 2000 International says it has reached an out- of-court settlement with Verbatim Corporation Group, two of eight companies against which Trek filed an International Trade Commission (ITC) complaint for alleged infringement of four USB-flash drive patents.
Under the settlement, Trek grants to Verbatim a non-exclusive, non-transferable, irrevocable license under the licensed patents to make, have made, use, import, offer to sell and/or sell licensed products worldwide during the term of the licensed patents.
Trek’s ITC complaint filed on June 15, 2011 requests an exclusion order from the ITC that prohibits the importation of infringing products into the United States, as well as a cease and desist order prohibiting the sales of infringing products in the United States. The Complaint seeks to block the importation of infringing USB flash drives that violate Trek’s intellectual property rights.
Showing posts with label Trek 2000 International Ltd. Show all posts
Showing posts with label Trek 2000 International Ltd. Show all posts
Wednesday, October 5, 2011
Sunday, September 25, 2011
Toshiba is to launch the world's first WiFi-enabled SD memory card, the company announced today at the IFA consumer technology show in Berlin.
The new FlashAir card looks outwardly like a standard SDHC memory card and weighs in at a measly 2g. It will initially be available in a capacity of 8GB.
Building wireless communication directly into the memory card means users of devices like digital cameras will be able to use it to upload and download photos, videos and other files to their PC, phone, tablet or other WiFi-equipped device directly over a wireless network, without having to faff around with cables or card readers.
The cards will be compatible with the 802.11n wireless standard, and backwards-compatible with the b and g variants. Security is provided by WEP, TKIP and AES encryption (WPA and WPA2).
According to Toshiba's specs, the card's power draw is similar to that of a standard SD card, so users shouldn't see too much of a dent in their camera's battery life when using the FlashAir card.
Toshiba is currently seeking Wi-Fi certification for FlashAir in Japan, North America and Europe, and says the first FlashAir cards will go on sale in February 2012.
Read more: http://www.thinq.co.uk/2011/9/1/worlds-first-wireless-sd-card-toshiba-ifa/#ixzz1X562UgJX
On any other normal market day, unlike today's gloomy day, Trek would have soared with this news >>
SINGAPORE – 21 September, 2011 - Trek 2000 International Ltd. (“Trek”), inventor and
patent owner of the ThumbDriveTM , today announced that it will start delivering customized
FluCard® to PLUS Corporation (“Plus”) from October 2011 onwards, a premier provider of
leading-edge digital projectors and electronic Copy/White boards. Trek will deliver
approximately 50K units of Flu Card to Plus in FY2012. It will have a positive financial impact
on Trek’s FY2012 earnings
ThumbDrive inventor out to prove he is no one-hit wonder
Henn Tan could have ruled the global market in what became the ubiquitous USB flash drive that helped consign the floppy disk to the dustbin of technological history.
But his grip on the ThumbDrive slipped and the market was flooded with a myriad of brands for the handy memory device which could be small enough to dangle on a key ring.
Now the Singaporean entrepreneur hopes to prove he was no one-hit wonder.
Tan, who holds the patent for the compact data storage device in over 30 markets and the global trademark for the ThumbDrive brand, now has a firmer hold on another invention with a rather unusual name.
The FluCard - a postage stamp-size storage device that can also transmit data wirelessly - is Tan's new baby, and he hopes to see it used by millions of people; just like the USB drive.
Tan said many thought the ThumbDrive was a one-hit wonder.
"I told them no, but many refused to believe me," the 54-year-old said.
"We are more than just about ThumbDrives and the power of this FluCard is going to be immense," insisted the chairman and chief executive of Trek 2000 International, which is listed on the Singapore Exchange.
Tan laments that he made a mistake with the ThumbDrive by going it alone instead of partnering with an established player in 2000, an admittedly "naive" move that allowed rivals to get big slices of the USB-based data storage pie.
This time around, he has teamed up with Japan's Toshiba Corp to promote the FluCard and ensure its patent is protected globally.
Why the name?
"It's contagious and easy to recall," says Tan, a marketing man who employs technical experts to flesh out his ideas.
"You go to Afghanistan, you say flu, and they understand."
Marc Einstein, regional manager at technology consultancy Frost and Sullivan, said the FluCard is a sign of the convergence underway in consumer electronics and computer technology.
"I do think that this is where the future lies for technologies and consumer devices," he said, adding that securing Toshiba's support "is a good first step" for the Singapore firm.
Tan said his company and Toshiba, now the second largest shareholder in Trek 2000 International after him, formed a consortium of camera makers to adopt the FluCard as the industry standard.
Terence Wong, co-head of research at Singapore brokerage DMG and Partners, sees good commercial prospects for the FluCard and also feels partnering Toshiba is a right move for Tan.
"This FluCard can potentially kill off the dummy SD card if they get it right," Wong said.
Shaped exactly like the Secure Digital (SD) memory cards now used widely in compact digital cameras, the FluCard comes embedded with Wi-Fi to transmit data to other wireless-enabled devices such as mobile phones, laptops and tablet computers.
"It can do more than what an ordinary dumb, dumb SD card can do which is just to store data," Tan said.
"As long as you have a hardware embedded with Wi-Fi, you can download anything from the FluCard."
Launched earlier this year, the FluCard works in any device that has an SD slot and the camera market is the most obvious target for Tan.
SD cards are predominantly used in compact digital cameras, 100 million of which were sold in 2009 alone, according to industry estimates.
Using a FluCard in the digital camera the user has the option of uploading new photos directly to the internet for sharing with friends on Facebook and other social networks.
It also functions as a data storage back-up since the content inside the FluCard can be instantly transferred to a private user account on a portal set up by Trek 2000 International.
Tan's idea for the FluCard came about after a holiday with his family in China five years ago was ruined when they lost their camera.
"You can't be going back to the places to retake the photos, and I felt lousy there wasn't any data backup," said Tan.
"The power of this FluCard is going to be immense if I get it right," he said, adding it could catapult his company from a fringe player into the major leagues of the data storage industry with Toshiba's support.
Tan's anguish was clear as he recalled how his company lost out to the "big boys" of data storage who came out with their own USB-based devices - and to pirates who simply made ThumbDrive knockoffs.
"Right now we are still generating income [from royalties] but not much," said Tan.
"Size counts, and I learnt my lesson real hard."
In retrospect, Tan said it would have been better if he had partnered one of the big brands when the ThumbDrive was launched in March 2000, but his eagerness got the better of him at the time.
"I was naive, I was gullible and I decided to take this product all alone, believing that we can do it."
"Now I have Toshiba, I am riding on the coat-tails of Toshiba."
AFP
Tuesday, November 23, 2010
TREK 2000: 'We Are Going To Do Big Business Next Year
IN TREK 2000’s roadmap, 6 million units of its FluCard would be produced for worldwide use next year and 13 million in 2012.
And by 2013, the FluCard would seize 20-30% - with 28 million FluCards produced - of the world’s Secure Digital (SD) card market.
Big numbers indeed, and they would be achieved through Trek’s contract manufacturer initially and, later, in conjunction with Toshiba Corporation’s in-house manufacturing capacity.
“From next year, we are going to do big business,” said Trek chairman and CEO Henn Tan to investors at Trek’s roadshow at CIMB yesterday.
The FluCard is to appear in a wide range of mid- to high-end Japanese digital cameras.
In 2009, the total market for digital cameras worldwide was about 103 million units. They came fitted with an SD card, which stores photos – essentially a dumb device.
On the other hand, the FluCard which is to replace the SD card enables photos to be wirelessly transferred between FluCard-enabled cameras.
With the FluCard, you can also upload photos from the cameras to the Internet.
The FluCard is Trek’s passport to winning big.
That, however, was not what a member of the audience at CIMB yesterday was keeping in view. Instead, he lamented that based on last year’s dividend payout of 0.5 cent a share, Trek’s running stock yield is just 1.1%.
Henn Tan made a reference to Toshiba, the second largest shareholder of Trek with an 17.8% stake, saying it had increased its stake in Trek after recognising the potential of the FluCard.
The stake rose from 15.7% through the purchase of 6.3 million shares in married deals in August.
“Toshiba’s CEO has said his company has invested in Trek not for dividends or capital gain. It’s because they have seen the technology and intellectual property of Trek – it’s something that synergises with the roadmap of Toshiba.”
All of Trek’s solutions are based on NAND flash memory. Toshiba has about 30% of the world’s NAND flash memory market, and is always looking for new applications.
And by 2013, the FluCard would seize 20-30% - with 28 million FluCards produced - of the world’s Secure Digital (SD) card market.
Big numbers indeed, and they would be achieved through Trek’s contract manufacturer initially and, later, in conjunction with Toshiba Corporation’s in-house manufacturing capacity.
“From next year, we are going to do big business,” said Trek chairman and CEO Henn Tan to investors at Trek’s roadshow at CIMB yesterday.
The FluCard is to appear in a wide range of mid- to high-end Japanese digital cameras.
In 2009, the total market for digital cameras worldwide was about 103 million units. They came fitted with an SD card, which stores photos – essentially a dumb device.
On the other hand, the FluCard which is to replace the SD card enables photos to be wirelessly transferred between FluCard-enabled cameras.
With the FluCard, you can also upload photos from the cameras to the Internet.
The FluCard is Trek’s passport to winning big.
That, however, was not what a member of the audience at CIMB yesterday was keeping in view. Instead, he lamented that based on last year’s dividend payout of 0.5 cent a share, Trek’s running stock yield is just 1.1%.
Henn Tan made a reference to Toshiba, the second largest shareholder of Trek with an 17.8% stake, saying it had increased its stake in Trek after recognising the potential of the FluCard.
The stake rose from 15.7% through the purchase of 6.3 million shares in married deals in August.
“Toshiba’s CEO has said his company has invested in Trek not for dividends or capital gain. It’s because they have seen the technology and intellectual property of Trek – it’s something that synergises with the roadmap of Toshiba.”
All of Trek’s solutions are based on NAND flash memory. Toshiba has about 30% of the world’s NAND flash memory market, and is always looking for new applications.
Saturday, November 20, 2010
Saturday, October 23, 2010
Thumb Drive
Even so, he’s already begun thinking about
his next invention. Ever motivated by how he
was swindled of fame and fortune all those years
ago, Tan is now dreaming up a killer for the
USB flash drive. He gives The Edge Singapore
a peek at what he plans: It looks nothing like
a flash drive and in fact the product is hardly
discernible. Tan promises that it will be something
impressive, saying: “This is set to take
the ThumbDrive industry by storm.”
his next invention. Ever motivated by how he
was swindled of fame and fortune all those years
ago, Tan is now dreaming up a killer for the
USB flash drive. He gives The Edge Singapore
a peek at what he plans: It looks nothing like
a flash drive and in fact the product is hardly
discernible. Tan promises that it will be something
impressive, saying: “This is set to take
the ThumbDrive industry by storm.”
Flucard
Will the card be the hit DMG expects
it to be? Tan certainly thinks so.
“This FluCard is going to be an SD
card killer, the way the ThumbDrive
was a floppy-disk killer,” he says. In
2009, Tan says, some 230 million SD
cards were sold. “And this is projected
to grow continuously.” That means
a huge potential market for Trek, if
consumers are willing to make the
switch to the FluCard. Right now,
Tan is working on getting the price
of the FluCard down so that it is on
a par with the SD card.
-Henn Tan
it to be? Tan certainly thinks so.
“This FluCard is going to be an SD
card killer, the way the ThumbDrive
was a floppy-disk killer,” he says. In
2009, Tan says, some 230 million SD
cards were sold. “And this is projected
to grow continuously.” That means
a huge potential market for Trek, if
consumers are willing to make the
switch to the FluCard. Right now,
Tan is working on getting the price
of the FluCard down so that it is on
a par with the SD card.
-Henn Tan
Wednesday, October 20, 2010
Made-in-S’pore mini-videocam may pose security issues
SMALL is the way to go and the latest product to capture attention is the i-Ball, a nifty made-in-Singapore video camera, which is only as wide as a 50-cent coin.
Going on sale today, it makes filming much easier and more imperceptible.
Its size and features could lend the device extremely well to meeting various lifestyle and security needs, although it has sparked concerns about its potential for abuse.
The 50g product is made by home-grown company Trek 2000, which invented the thumbdrive in 1999.
The 2-megapixel video camera, which costs $119, can wirelessly stream live videos it records, with audio, to a computer or smartphone at a distance of up to 20m away.
As many as seven computers or phones can be connected to one i-Ball to receive video signals from it.
It has battery life of 11/2 hours and supports only video recording on computers, for now. There are plans to release iPhone, Symbian and Windows Phone 7 video-recording apps.
Mr James Aruldoss, president of the Association of Certified Security Agencies, said that if the i-Ball really works, "I can see a lot of social and privacy issues with it, but there could be positive security spin-offs".
Mr James Loh, owner of private investigations firm SG Investigators, also saw the benefits of the i-Ball but cautioned that it could be misused, as it can record videos from a distance and can be easily concealed.
Instead, he sees it as a fun and portable gizmo for youth and young adults to take videos without needing line of sight of what they wish to record.
Furthermore, he believes the i-Ball can be very handy as a security tool. He said several security firms have approached Trek 2000 to evaluate how the gadget could complement their security surveillance work.
Mr Loh of SG Investigators, who also has eight years of security experience, said the i-Ball can be useful for private investigators in garnering audio-visual evidence.
Also, if it could function continuously by plugging to a power supply, the device could be a boon to a security guard who can scan several more areas. "It saves on manpower," he said.
mypaper
Going on sale today, it makes filming much easier and more imperceptible.
Its size and features could lend the device extremely well to meeting various lifestyle and security needs, although it has sparked concerns about its potential for abuse.
The 50g product is made by home-grown company Trek 2000, which invented the thumbdrive in 1999.
The 2-megapixel video camera, which costs $119, can wirelessly stream live videos it records, with audio, to a computer or smartphone at a distance of up to 20m away.
As many as seven computers or phones can be connected to one i-Ball to receive video signals from it.
It has battery life of 11/2 hours and supports only video recording on computers, for now. There are plans to release iPhone, Symbian and Windows Phone 7 video-recording apps.
Mr James Aruldoss, president of the Association of Certified Security Agencies, said that if the i-Ball really works, "I can see a lot of social and privacy issues with it, but there could be positive security spin-offs".
Mr James Loh, owner of private investigations firm SG Investigators, also saw the benefits of the i-Ball but cautioned that it could be misused, as it can record videos from a distance and can be easily concealed.
Instead, he sees it as a fun and portable gizmo for youth and young adults to take videos without needing line of sight of what they wish to record.
Furthermore, he believes the i-Ball can be very handy as a security tool. He said several security firms have approached Trek 2000 to evaluate how the gadget could complement their security surveillance work.
Mr Loh of SG Investigators, who also has eight years of security experience, said the i-Ball can be useful for private investigators in garnering audio-visual evidence.
Also, if it could function continuously by plugging to a power supply, the device could be a boon to a security guard who can scan several more areas. "It saves on manpower," he said.
mypaper
Tuesday, October 19, 2010
Trek 2000 launches world’s smallest portable Wi-Fi remote camera
Trek 2000 International, the inventor of the ThumbDrive and FluCard, officially unveiled its latest product, the i-Ball, today. According to Trek 2000, it is the world’s smallest portable Wi-Fi remote camera, targeted at mass-market consumers.
Roughly the size of a 50-cent coin, the i- Ball boasts a 2MP built-in camera for capturing high quality images and video.
“The camera was made possible by using the group’s advanced design capabilities and incorporating its patented wireless solutions, which allows for continuous streaming of up to 20 meters wirelessly,” says Trek 2000.
The i-Ball also uses CR2 size batteries that can last for up to 1.5 hours.
Roughly the size of a 50-cent coin, the i- Ball boasts a 2MP built-in camera for capturing high quality images and video.
“The camera was made possible by using the group’s advanced design capabilities and incorporating its patented wireless solutions, which allows for continuous streaming of up to 20 meters wirelessly,” says Trek 2000.
The i-Ball also uses CR2 size batteries that can last for up to 1.5 hours.
Monday, October 11, 2010
Asiasons WFG Research expects Trek’s 2011 profit to jump to more than US$10 m
Who we met: Mr Gurcharan Singh (Group CFO)
Going forward, the growth of the company is expected to be driven by its latest brainchild known as the FluCard, a form factor of the Secure Digital (SD) card.
Presently, while there are cameras or other SD cards with Wi-Fi attributes, we understand from management that these products are only able to transfer data on a limited number of networks.
The FluCard, however, is compatible with all existing digital cameras with SD card slots and has a memory of up to 30 secured networks. Furthermore, there is also an online portal for FluCard users to upload their digital content.
Key takeaways:
1) Financial Review - Trek 2000 reported 2Q10 revenue of US$21.1m (+52% YoY, -0.9% QoQ) while net earnings came in at US$0.8m (+84.5% YoY, +151.3% QoQ) as its higher-margined mobile media solutions business drove growth. However, we are expecting 4Q10 earnings to be way higher than what was seen in 2Q10 as contributions from its FluCard would then be recognised.
2) Industry Review - The IT landscape in which Trek is involved is highly competitive, thus leading to relatively low earnings for Trek in the past two years where net earnings amounted to less than US$1.5m collectively. Margins have been generally low, although we do recognize that this issue is also seen in the company's competitors as well.
Players in this industry are required to come up with their "killer products" should they wish to alter this equation, and Trek believes that its FluCard to set to take up this challenge.
3) Company Review - We surmise that Trek's previous strategy pertaining to its ThumbDrive was not well-executed as the company opted to market this innovative product without any major backing from any MNCs. However, in promoting the FluCard, Trek would be working very closely with major shareholder Toshiba where a consortium of MNCs will be formed to sell this new product. Given the robust backing from this tech heavyweight, we therefore strongly believe that it would be different for Trek this time round as Toshiba will appoint the company as the official OEM for the FluCard while overseeing its IP protection rights along with the consortium.
Our view:
We are expecting market reception for the FluCard to be highly positive and that meaningful contributions from this product should kick in during 4Q10. Therefore, we estimate that FY10 net earnings should be no less than US$4.5m as compared to the US$0.7m that was seen in FY09. For FY11, we believe that net profitability should also more than exceed the US$10m mark as it ramps up its production of the FluCard while demand is expected to be supported by the various camera makers.
www.nextinsight.biz
Going forward, the growth of the company is expected to be driven by its latest brainchild known as the FluCard, a form factor of the Secure Digital (SD) card.
Presently, while there are cameras or other SD cards with Wi-Fi attributes, we understand from management that these products are only able to transfer data on a limited number of networks.
The FluCard, however, is compatible with all existing digital cameras with SD card slots and has a memory of up to 30 secured networks. Furthermore, there is also an online portal for FluCard users to upload their digital content.
Key takeaways:
1) Financial Review - Trek 2000 reported 2Q10 revenue of US$21.1m (+52% YoY, -0.9% QoQ) while net earnings came in at US$0.8m (+84.5% YoY, +151.3% QoQ) as its higher-margined mobile media solutions business drove growth. However, we are expecting 4Q10 earnings to be way higher than what was seen in 2Q10 as contributions from its FluCard would then be recognised.
2) Industry Review - The IT landscape in which Trek is involved is highly competitive, thus leading to relatively low earnings for Trek in the past two years where net earnings amounted to less than US$1.5m collectively. Margins have been generally low, although we do recognize that this issue is also seen in the company's competitors as well.
Players in this industry are required to come up with their "killer products" should they wish to alter this equation, and Trek believes that its FluCard to set to take up this challenge.
3) Company Review - We surmise that Trek's previous strategy pertaining to its ThumbDrive was not well-executed as the company opted to market this innovative product without any major backing from any MNCs. However, in promoting the FluCard, Trek would be working very closely with major shareholder Toshiba where a consortium of MNCs will be formed to sell this new product. Given the robust backing from this tech heavyweight, we therefore strongly believe that it would be different for Trek this time round as Toshiba will appoint the company as the official OEM for the FluCard while overseeing its IP protection rights along with the consortium.
Our view:
We are expecting market reception for the FluCard to be highly positive and that meaningful contributions from this product should kick in during 4Q10. Therefore, we estimate that FY10 net earnings should be no less than US$4.5m as compared to the US$0.7m that was seen in FY09. For FY11, we believe that net profitability should also more than exceed the US$10m mark as it ramps up its production of the FluCard while demand is expected to be supported by the various camera makers.
www.nextinsight.biz
Thursday, September 16, 2010
BT: Trek has a new patent and the backing of a 'big brother'
Published September 14, 2010
Trek has a new patent and the backing of a 'big brother'
By VEN SREENIVASAN
EXECUTION is sometimes more important than invention. And few companies would be more aware of this than technology specialist Trek 2000 International.
Almost a decade ago, the little- known company with just 70 staff invented the ThumbDrive - the device that effectively ended the floppy disk era.
After designing the product in 1999, Trek filed patents for intellectual property (IP) protection in over 50 countries and territories worldwide. It then bravely embarked on plans to produce and distribute the product worldwide in 2000.
But what this ambitious little 'mighty mouse' did not realise was that the world can be a hostile place for small companies, no matter how innovative they are. No sooner had it embarked on its mission to launch the ThumbDrive than it found itself face-to-face with some global 'big boys' of the industry, who challenged its IP rights. Within a few months, ThumbDrive-like products were flooding the market. It was, in the crudest terms, a case of 'if you don't like it, sue me'.
After spending several million dollars trying - in vain - to protect and enforce its IP rights, Trek came to the stark realisation that it was fighting a losing battle. It was not just a lost cause; it was also a case of lost opportunities.
The bruising experience made Trek realise that filing for IP protection alone is not enough when there are 'big boys' - or big bullies - out there who can either swallow you up or squeeze you out of the game. Even a mighty mouse can be trampled by huge elephants in the room.
Fast-forward 10 years, and Trek appears to have learned some crucial lessons - the biggest of all being that a small company with valuable technology needs to be 'protected' by a big partner.
This lesson is particularly timely as Trek goes to market with another potential world-beating product: the FluCard.
This wafer-thin SD-type card, barely bigger than a large toenail, essentially enables smart phones, smart cameras, personal computers, printers and any other electronic device with a smart card, to communicate with one another. In short, it's a micro processor that enables smart devices to 'talk' to one another, transfer data and share information - wirelessly and without any physical connection. The FluCard can effectively substitute SD cards in smart devices.
Trek has already rushed through the requisite patent protection papers for the FluCard, just as it did for its ThumbDrive. The product is due to be launched in stages during the coming months.
But this time, the company has a 'big brother' to look after its interests - in case some big bullies come back for another bite. The partner is Japan's Toshiba Corporation, which now owns 17.8 per cent of Trek.
Trek plans to license the FluCard to Toshiba, which will manufacture it through its OEM networks worldwide. Toshiba will also police the IP protection. Meanwhile, licensing revenue and royalties will accrue to the Singapore company. Trek will also collect a portion of the revenue from the cards, which will be priced at US$50 apiece initially, though prices are likely to slide to around US$30.
The partnership with Toshiba is critical as the Japanese giant is a seasoned hand in the SD card market, controlling 45 per cent of the 1.3 billion cards produced each year. It could do the same with the FluCard.
Toshiba - and Trek - are initially chasing the smart digital camera segment. Some 130 million of these cameras are made and sold worldwide every year. And at least a third are expected to come with the FluCard within three years. If this happens, industry insiders estimate a potential revenue of US$200 million a year for Trek by 2013. And at least 20 per cent of this could go straight to its bottom line.
Not bad for a small company which has made barely US$6 million.
As DMG & Partners Research - the only investment house to cover the company - noted last week: 'Once the FluCard starts gaining recognition, the stock will take a life of its own.'
DMG has an internal target of 55 cents for the counter. But judging by the stock's performance last week, the market may already have woken up to Trek's potential.
Of course, all this also makes Trek an attractive investment for some of the bigger boys, if not an outright takeover target.
Trek, ranked Best Managed Small Company in Singapore by AsiaMoney, has learned an important lesson: technology gets you only so far. You also need a 'big brother' to be the custodian of that technology in the global marketplace.
Trek has a new patent and the backing of a 'big brother'
By VEN SREENIVASAN
EXECUTION is sometimes more important than invention. And few companies would be more aware of this than technology specialist Trek 2000 International.
Almost a decade ago, the little- known company with just 70 staff invented the ThumbDrive - the device that effectively ended the floppy disk era.
After designing the product in 1999, Trek filed patents for intellectual property (IP) protection in over 50 countries and territories worldwide. It then bravely embarked on plans to produce and distribute the product worldwide in 2000.
But what this ambitious little 'mighty mouse' did not realise was that the world can be a hostile place for small companies, no matter how innovative they are. No sooner had it embarked on its mission to launch the ThumbDrive than it found itself face-to-face with some global 'big boys' of the industry, who challenged its IP rights. Within a few months, ThumbDrive-like products were flooding the market. It was, in the crudest terms, a case of 'if you don't like it, sue me'.
After spending several million dollars trying - in vain - to protect and enforce its IP rights, Trek came to the stark realisation that it was fighting a losing battle. It was not just a lost cause; it was also a case of lost opportunities.
The bruising experience made Trek realise that filing for IP protection alone is not enough when there are 'big boys' - or big bullies - out there who can either swallow you up or squeeze you out of the game. Even a mighty mouse can be trampled by huge elephants in the room.
Fast-forward 10 years, and Trek appears to have learned some crucial lessons - the biggest of all being that a small company with valuable technology needs to be 'protected' by a big partner.
This lesson is particularly timely as Trek goes to market with another potential world-beating product: the FluCard.
This wafer-thin SD-type card, barely bigger than a large toenail, essentially enables smart phones, smart cameras, personal computers, printers and any other electronic device with a smart card, to communicate with one another. In short, it's a micro processor that enables smart devices to 'talk' to one another, transfer data and share information - wirelessly and without any physical connection. The FluCard can effectively substitute SD cards in smart devices.
Trek has already rushed through the requisite patent protection papers for the FluCard, just as it did for its ThumbDrive. The product is due to be launched in stages during the coming months.
But this time, the company has a 'big brother' to look after its interests - in case some big bullies come back for another bite. The partner is Japan's Toshiba Corporation, which now owns 17.8 per cent of Trek.
Trek plans to license the FluCard to Toshiba, which will manufacture it through its OEM networks worldwide. Toshiba will also police the IP protection. Meanwhile, licensing revenue and royalties will accrue to the Singapore company. Trek will also collect a portion of the revenue from the cards, which will be priced at US$50 apiece initially, though prices are likely to slide to around US$30.
The partnership with Toshiba is critical as the Japanese giant is a seasoned hand in the SD card market, controlling 45 per cent of the 1.3 billion cards produced each year. It could do the same with the FluCard.
Toshiba - and Trek - are initially chasing the smart digital camera segment. Some 130 million of these cameras are made and sold worldwide every year. And at least a third are expected to come with the FluCard within three years. If this happens, industry insiders estimate a potential revenue of US$200 million a year for Trek by 2013. And at least 20 per cent of this could go straight to its bottom line.
Not bad for a small company which has made barely US$6 million.
As DMG & Partners Research - the only investment house to cover the company - noted last week: 'Once the FluCard starts gaining recognition, the stock will take a life of its own.'
DMG has an internal target of 55 cents for the counter. But judging by the stock's performance last week, the market may already have woken up to Trek's potential.
Of course, all this also makes Trek an attractive investment for some of the bigger boys, if not an outright takeover target.
Trek, ranked Best Managed Small Company in Singapore by AsiaMoney, has learned an important lesson: technology gets you only so far. You also need a 'big brother' to be the custodian of that technology in the global marketplace.
Tuesday, September 14, 2010
TREK2000'S New World-First - FluCard - Highlighted In Japanese Daily
Lately, we note the announcement of memory cards with built-in wireless communication function that allows digital cameras to connect to the Web easily.
On 22 June, Toshiba, partnering a Singapore electronic device company, Trek 2000 International, announced the development of a SD card with built-in wireless LAN function, and it is working toward standardizing the specification among digital device manufacturers.
The product will be shipped next spring. Once the new “SD Card” is inserted into the slot of the digital camera, it can transmit pictures to computers as well as digital photo frames. With the photo sharing service offered by the portal, it is easy to share photos with family members or friends.
“The card is usable by the majority of existing digital cameras,” said Mr Ryoichi Sugahara, person in charge of Japan office of Trek 2000.
If the digital devices comply to the specifications decided by Toshiba, the usability is enhanced.
For example, compatible digital cameras are able to exchange photos, and output to printers and projectors becomes possible. In February this year, Sony shipped a memory stick that is capable of 560 Mbit/sec transfer speed within 3cm.
The product caters to high volume of data transfer. The product uses a proprietary technology called “transfer jet”.
Toshiba has raised the eyebrows of SD card players.
Toshiba has taken action to define the new specifications for SD application, without involving SD Card specification partners Panasonic and Sandisk.
Toshiba explained that it is teaming up with Trek whose card is capable of transferring pictures. Beside digital camera manufacturers, Toshiba is inviting the participation of other memory manufacturers.
On the other hand, Panasonic and Sandisk said they have no plan to join the movement of Toshiba. It appeared that the three companies did not reach an agreement regarding the SD Card Consortium. Japan has a substantial share of the digital camera market.
However, the competition in the area of pixels and miniaturization has reached a limit. To counter the competition from Korean and other overseas manufacturers, it has become necessary for the Japanese manufacturers to propose new applications using wireless technologies, such as that of Trek2000.
-www.nextinsight.net
On 22 June, Toshiba, partnering a Singapore electronic device company, Trek 2000 International, announced the development of a SD card with built-in wireless LAN function, and it is working toward standardizing the specification among digital device manufacturers.
The product will be shipped next spring. Once the new “SD Card” is inserted into the slot of the digital camera, it can transmit pictures to computers as well as digital photo frames. With the photo sharing service offered by the portal, it is easy to share photos with family members or friends.
“The card is usable by the majority of existing digital cameras,” said Mr Ryoichi Sugahara, person in charge of Japan office of Trek 2000.
If the digital devices comply to the specifications decided by Toshiba, the usability is enhanced.
For example, compatible digital cameras are able to exchange photos, and output to printers and projectors becomes possible. In February this year, Sony shipped a memory stick that is capable of 560 Mbit/sec transfer speed within 3cm.
The product caters to high volume of data transfer. The product uses a proprietary technology called “transfer jet”.
Toshiba has raised the eyebrows of SD card players.
Toshiba has taken action to define the new specifications for SD application, without involving SD Card specification partners Panasonic and Sandisk.
Toshiba explained that it is teaming up with Trek whose card is capable of transferring pictures. Beside digital camera manufacturers, Toshiba is inviting the participation of other memory manufacturers.
On the other hand, Panasonic and Sandisk said they have no plan to join the movement of Toshiba. It appeared that the three companies did not reach an agreement regarding the SD Card Consortium. Japan has a substantial share of the digital camera market.
However, the competition in the area of pixels and miniaturization has reached a limit. To counter the competition from Korean and other overseas manufacturers, it has become necessary for the Japanese manufacturers to propose new applications using wireless technologies, such as that of Trek2000.
-www.nextinsight.net
TREK 2000 is one of a rare few Singapore companies that have come up with creations that have enjoyed worldwide success and in the process created a new breed of products.
Its ThumbDrive, introduced to the world about 10 years ago, led to the demise of the floppy drive.
Now it has the FluCard, potentially a world-class act. Asked how the idea for the FluCard came about, Mr Henn Tan, chairman of Trek 2000, recalled being on holiday in Chengdu with his family in 2005.
He told NextInsight: “On the third day, my daughter misplaced our camera. I was upset. It wasn’t the camera but the photos which I missed as our holiday place was absolutely beautiful. I was thinking: ‘I am supposed to be a specialist in external storage media. How could I have gotten the photos to be transmitted immediately?”
Recently, at Trek 2000’s office in Loyang Way, we watched (open-mouthed) a demonstration of how FluCard enables photos taken of us by a Trek executive to be transmitted wirelessly from a camera to another within 10 m – and from a camera to our iPhones.
Most amazingly was how, with the flick of one’s wrist, a camera equipped with a FluCard can send a photo to another camera.
Yes, the flick of one’s wrist activates the transmission! It's the hi-tech version of an angel wielding a magic wand to execute a magical event.
Such wizardry is available to most existing digital cameras which have a SD (Secure Digital) card holder as the cameras will work fine with the FluCard inserted – just get rid of the SD card and replace it with the FluCard. Masses of consumers can adopt the invention right away.
Given this vast market, Trek has embarked on selling the FluCard directly to consumers via the electronic stores such as Challenger and Gain City in Singapore and via its website (www.trek2000.com.sg).
Trek has a strategy to ramp up sales globally by tieing up with a consortium of Japanese camera makers, including Toshiba Corporation, which has 17.84% stake in Trek, to launch cameras which incorporate the FluCard.
Japanese camera makers command the largest market share in the world, selling millions of units a year. Their first FluCard-equipped cameras are scheduled to be launched in January next year.
More on the FluCard’s specs
The FluCard, which has storage capacities ranging from 8GB to 64GB, is Wi-Fi enabled and is more than just for capturing and sharing transmitting photos from a camera to another.
It can also be used to send photos to digital photo-frames, television, computers or laptops and many other equipment which have SDIOs or SD Card host slots through which the FluCard can be inserted.
And the card works fine also with video cameras for the sharing of video clips.
The FluCard transmits photos and video clips to the nearest recipient. It can be programmed to send to multi-users.
With the purchase of a FluCard, which costs US$150 for a pair with 8GB capacity each at Trek’s website, each user is given 2GB of space on a portal created by Trek to store their photos.
So after taking photos, users can upload their photos to their accounts in the portal which are accessible via their username and password.
The upload is done in Wi-Fi friendly locations such as shopping malls or via an Internet connection through their smartphones.
Mr Tan is confident of a rapid spread of the use of the FluCard, and its falling costs over the years, which would lead to the demise of the SD card.
“We are all fired up over the FluCard,” said Gucharan Singh, Trek’s CFO.
The FluCard is expected to take Trek’s profit level to a new dimension. In an Aug 15 report, DMG & Partners analyst James Lim forecasted the FluCard could account for 92% of Trek’s earnings in FY2011.
His forecast for Trek’s total net earnings is $14.9 million in FY11 versus $4.1 million this year. At the recently traded 47 cents, the stock was on a PE of 6.8X next year’s forecast earnings. DMG's internal target is 55 cents for the stock.
After its core ThumbDrive business boosted the company’s half-year financial performance (profit after tax rose 138.1% to US$1.3 million), Mr Tan, said, “We are extremely delighted to record strong earnings for the first-half of 2010 and are confident that the company will see even greater growth when our FluCard™ is introduced into markets from the fourth quarter of this year.”
-www.nextinsight.net
Friday, September 10, 2010
Trekking on
The Thumbdrive is such a humble device, so wide spread and easy to use that you may not even give it a second thought about its origins.
Henn Tan, chairman and CEO of Trek 2000 International Ltd (Sesdaq listed in year 2000), was dead serious about this particular piece of gadget a decade ago.
Having come across the USB port, Tan envisioned the proliferation of small yet portable storage devices that would utilise the much faster transfer speeds of the USB port, thus giving birth to the USB Thumbdrive in the year 2000.
It was intended to be a cost effective replacement of the cumbersome and slow floppy disk that dominated the computing industry at that time. The invention of the Thumbdrive was supposed to catapult Trek 2000 forward to overtake its peers and into the big league.
"When I first came out with the Thumbdrive, I was so excited. I believed from day one that this was not a fortuitous attempt. I knew that I wanted to replace the floppy disk - that is why I filed for patent rights in 33 countries," he said.
However, things did not turn out the way Tan intended. Immediately after the birth of the Thumbdrive, the battle for its intellectual property rights would start.
"I was so ignorant, I thought I had the whole world in my hands. I was so proud to share everything, and I kept on saying patent granted," said Tan.
But what he didn't realise was that during the two years between filing the patent and getting it approved, anyone could steal those ideas and call it their own.
"The safest is to launch your product close to the patent grant date, and if possible, wait for it to be granted, then you will be real, real safe," he said.
Soon after announcing to the world the marvel that the company has created and amidst the initial euphoria, Tan received numerous enquiries from tech giants, all wanting a piece of the Thumbdrive.
I must have something I can call my own, that's why I turn to invention, so I can say that this is my own creation and this is my way of surviving.
The very first visit came from the business development president of a major tech companies that wanted to acquire the rights to the Thumbdrive. After setting foot into Tan's humble office he instead shelved the idea.
Although highly impressed by the technology presented by the small boutique technology firm, the foreign tech firm was at the same time unimpressed with size of Trek 2000 then.
At the end of the day, a commercial agreement was not signed with the major tech company, citing the reason that Trek 2000 was too small and untested. The concern was that in the event that something was to happen, the legal implications could run into hundreds of millions of dollars.
"That was the saddest moment … we were exceptionally down, and I had to coax and cajole my team to pick up and move forward," Tan said.
That incident was followed by a chain of events that would later plague the Thumbdrive for years to come.
A meeting was held with a foreign company that approached Trek 2000, with interest in being a distribution representative for Trek. Tan gave a comprehensive explanation of his product, and 10 months later found the company launching a similar product which was offered to another large tech company.
Cheap Taiwanese clones began to flood the market. Then came the rush of similar American devices. Amidst it all, Tan was powerless to stop the flow.
Later, other foreign companies approached Tan, representing the threat of large multi-national corporations with massive financial muscle.
One of the companies made a small financial offer for the rights to use the already patented Thumbdrive.
Trek 2000 had to consider carefully as a wrong move would mean a prolonged court battle, which could prove to be financially crippling and disastrous.
"It was then I learnt my lesson," said Tan, who discovered that in the cut-throat world of business, size really does matter. There was the realisation that in jostling by large companies for a piece of the same pie, any new player that would be perceived as a future threat.
Tan decided that a business model with no resources was detrimental to his company's growth, and decided to enforce change.
This time round, in preparation for Trek 2000's newest product, with a workking name, the Flucard, Tan decided that he would engage the help of a big tech company which he has close ties with and which is one of Trek 2000's major shareholders, Toshiba.
Having spent more than a third of his company's resources in the research and development of new products such as the Flucard, a proper plan has to be thought out to protect the intellectual property rights of such precious investments.
Tan decided that he could not do it single-handedly, like in the case of the Thumbdrive. A consortium for the Flucard was formed with Toshiba, and the policing responsibilities of the IP rights would fall on Toshiba's shoulders, with its massive financial muscle.
The Flucard is an invention which Tan is extremely proud of and foresees it taking the world by storm. And now, having learnt his lesson regarding the Thumbdrive, Tan is ready once again to take control of this invention.
The workings of the Flucard are simple - it is shaped exactly like a standard SD card, while providing an operating system (OS) which takes over the OS of a device (e.g. digital camera).
It is able to transfer data instantaneously from a device to another Flucard or any machine which is wi-fi enabled.
Another ability of the Flucard is to push data up and down a computing cloud, opening up new channels in terms of advertising as Trek 2000 also plans to provide the use of a free portal with any purchase of the Flucard.
"When I was travelling in China with my family, my daughter lost her digital camera on the third day! It was not the loss of the camera that made me upset, but it was the loss of the memories found in the card," he said. And that was when Tan decided to invent the Flucard.
Initially Tan had planned to market the product regionally. Then a close friend told him: "This is a product with a global function! Don't talk about restricting it into being regional!"
Tan gave further thought into the positioning of his company while struggling with the issue of cost and eventually decided to bring the Flucard to the global tech arena.
The anticipated impending success of the Flucard, however, does not signal Tan's willingness to take a back seat.
Tan isn't inclined to think of himself as a creative man, but rather a person who finds answers practical needs. "If someone approaches me today with an idea, I will hear them out. However, I expect them to take ownership. I will only take minor stake, as long as they are practical and realistic," he said.
Having grown up in an impoverished family, Tan has always had to rely on himself.
He started working for a Japanese technology firm, but thirteen years into the job, Tan wanted more - a stake in the company he was helping to build and not to retire early.
With savings of S$65,000, he decided to strike out on this own.
But then tragedy struck. Tan's youngest daughter was diagnosed with leukaemia, and he depleted his savings on the medical bills.
Desperate for an income, he decided to stay on with the Japanese technology firm.
A few years after his daughter's illness, he conceived of a plan.
Although he had 6 mouths to feed, he took one last gamble.
His former boss gave him S$1 million in credit, which helped him get started as a distributor of their products.
A few years after starting the distribution business, which earned a decent living for Tan, he felt it wasn't enough.
"I am a product man," he said.
"I must have something I can call my own, that's why I turn to invention, so I can say that this is my own creation and this is my way of surviving."
Posted : 28 June 2010
www.channelnewsasia.com
Henn Tan, chairman and CEO of Trek 2000 International Ltd (Sesdaq listed in year 2000), was dead serious about this particular piece of gadget a decade ago.
Having come across the USB port, Tan envisioned the proliferation of small yet portable storage devices that would utilise the much faster transfer speeds of the USB port, thus giving birth to the USB Thumbdrive in the year 2000.
It was intended to be a cost effective replacement of the cumbersome and slow floppy disk that dominated the computing industry at that time. The invention of the Thumbdrive was supposed to catapult Trek 2000 forward to overtake its peers and into the big league.
"When I first came out with the Thumbdrive, I was so excited. I believed from day one that this was not a fortuitous attempt. I knew that I wanted to replace the floppy disk - that is why I filed for patent rights in 33 countries," he said.
However, things did not turn out the way Tan intended. Immediately after the birth of the Thumbdrive, the battle for its intellectual property rights would start.
"I was so ignorant, I thought I had the whole world in my hands. I was so proud to share everything, and I kept on saying patent granted," said Tan.
But what he didn't realise was that during the two years between filing the patent and getting it approved, anyone could steal those ideas and call it their own.
"The safest is to launch your product close to the patent grant date, and if possible, wait for it to be granted, then you will be real, real safe," he said.
Soon after announcing to the world the marvel that the company has created and amidst the initial euphoria, Tan received numerous enquiries from tech giants, all wanting a piece of the Thumbdrive.
I must have something I can call my own, that's why I turn to invention, so I can say that this is my own creation and this is my way of surviving.
The very first visit came from the business development president of a major tech companies that wanted to acquire the rights to the Thumbdrive. After setting foot into Tan's humble office he instead shelved the idea.
Although highly impressed by the technology presented by the small boutique technology firm, the foreign tech firm was at the same time unimpressed with size of Trek 2000 then.
At the end of the day, a commercial agreement was not signed with the major tech company, citing the reason that Trek 2000 was too small and untested. The concern was that in the event that something was to happen, the legal implications could run into hundreds of millions of dollars.
"That was the saddest moment … we were exceptionally down, and I had to coax and cajole my team to pick up and move forward," Tan said.
That incident was followed by a chain of events that would later plague the Thumbdrive for years to come.
A meeting was held with a foreign company that approached Trek 2000, with interest in being a distribution representative for Trek. Tan gave a comprehensive explanation of his product, and 10 months later found the company launching a similar product which was offered to another large tech company.
Cheap Taiwanese clones began to flood the market. Then came the rush of similar American devices. Amidst it all, Tan was powerless to stop the flow.
Later, other foreign companies approached Tan, representing the threat of large multi-national corporations with massive financial muscle.
One of the companies made a small financial offer for the rights to use the already patented Thumbdrive.
Trek 2000 had to consider carefully as a wrong move would mean a prolonged court battle, which could prove to be financially crippling and disastrous.
"It was then I learnt my lesson," said Tan, who discovered that in the cut-throat world of business, size really does matter. There was the realisation that in jostling by large companies for a piece of the same pie, any new player that would be perceived as a future threat.
Tan decided that a business model with no resources was detrimental to his company's growth, and decided to enforce change.
This time round, in preparation for Trek 2000's newest product, with a workking name, the Flucard, Tan decided that he would engage the help of a big tech company which he has close ties with and which is one of Trek 2000's major shareholders, Toshiba.
Having spent more than a third of his company's resources in the research and development of new products such as the Flucard, a proper plan has to be thought out to protect the intellectual property rights of such precious investments.
Tan decided that he could not do it single-handedly, like in the case of the Thumbdrive. A consortium for the Flucard was formed with Toshiba, and the policing responsibilities of the IP rights would fall on Toshiba's shoulders, with its massive financial muscle.
The Flucard is an invention which Tan is extremely proud of and foresees it taking the world by storm. And now, having learnt his lesson regarding the Thumbdrive, Tan is ready once again to take control of this invention.
The workings of the Flucard are simple - it is shaped exactly like a standard SD card, while providing an operating system (OS) which takes over the OS of a device (e.g. digital camera).
It is able to transfer data instantaneously from a device to another Flucard or any machine which is wi-fi enabled.
Another ability of the Flucard is to push data up and down a computing cloud, opening up new channels in terms of advertising as Trek 2000 also plans to provide the use of a free portal with any purchase of the Flucard.
"When I was travelling in China with my family, my daughter lost her digital camera on the third day! It was not the loss of the camera that made me upset, but it was the loss of the memories found in the card," he said. And that was when Tan decided to invent the Flucard.
Initially Tan had planned to market the product regionally. Then a close friend told him: "This is a product with a global function! Don't talk about restricting it into being regional!"
Tan gave further thought into the positioning of his company while struggling with the issue of cost and eventually decided to bring the Flucard to the global tech arena.
The anticipated impending success of the Flucard, however, does not signal Tan's willingness to take a back seat.
Tan isn't inclined to think of himself as a creative man, but rather a person who finds answers practical needs. "If someone approaches me today with an idea, I will hear them out. However, I expect them to take ownership. I will only take minor stake, as long as they are practical and realistic," he said.
Having grown up in an impoverished family, Tan has always had to rely on himself.
He started working for a Japanese technology firm, but thirteen years into the job, Tan wanted more - a stake in the company he was helping to build and not to retire early.
With savings of S$65,000, he decided to strike out on this own.
But then tragedy struck. Tan's youngest daughter was diagnosed with leukaemia, and he depleted his savings on the medical bills.
Desperate for an income, he decided to stay on with the Japanese technology firm.
A few years after his daughter's illness, he conceived of a plan.
Although he had 6 mouths to feed, he took one last gamble.
His former boss gave him S$1 million in credit, which helped him get started as a distributor of their products.
A few years after starting the distribution business, which earned a decent living for Tan, he felt it wasn't enough.
"I am a product man," he said.
"I must have something I can call my own, that's why I turn to invention, so I can say that this is my own creation and this is my way of surviving."
Posted : 28 June 2010
www.channelnewsasia.com
Trek 2000 International Ltd
-shares issued 296m
-cash 21m
-FA 23M
-CA 44M
-CL 18M
-FL 2M
-NAV 16 USDcents
-Major Shareholders
Henn Tan 35.04%
Toshiba Finance 15.65%
Creative Technology 9.27%
-cash 21m
-FA 23M
-CA 44M
-CL 18M
-FL 2M
-NAV 16 USDcents
-Major Shareholders
Henn Tan 35.04%
Toshiba Finance 15.65%
Creative Technology 9.27%
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