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Economic Terrorists being harbored in East Texas

December 21st, 2010

patent litigation terroristsSet the threat level at red, East Texas, because you are under attack. Knowingly or unknowingly, East Texas has been harboring, what we can call, “economic terrorists”.

The accurately named “Patent Trolls” have found an accommodating court circuit in the eastern district of Texas and now are laying siege to our American way of doing business. In the simplest of economic courses we have learned that to create wealth you must offer a product or service in demand.

The deviant strategy of the “patent troll” is to search and buy patents from bankrupt firms without any intention of manufacturing the invention. Then they target other businesses that use some simulant of the invention in order to sue them for patent infringements. This is the complete opposite of offering a service or product.

This is profiting off someone else’s service or product. One definition of terrorist is an individual who uses violence, terror, and intimidation to achieve a result. Well, I don’t know anything more terrifying than to see one man profit from another man’s work.

Or, I haven’t seen a greater intimidation tactic than how these “patent trolls” threaten with a $1million defense cost in order to encourage out of court settlements. And with these acts of terror we could see a real devastating blow to the American free market.

Just think about it, if these companies have to pay hundreds of thousands of dollars for settlements or litigation costs, who will suffer the most? The consumer! These companies will either hike up the cost of their products or service in order to pay said costs or they will lose desire altogether to continue producing their product or service.

So, what do you think? Is it about time to call Homeland Security?

Redbox Being Challenged By The Movie Studios

December 16th, 2009

Redbox is suing 21st Century Fox and Universal Studios for telling Redbox to wait a few weeks after their movies go on sell before renting them. In the past the studios had attempted to prevent movie rental stores from even starting. This attack against Red Box seems like another attempt by the movie studios to prevent a movie rental business model from developing.

The Redbox movie rental boxes in Walmart actually help the movie studios considering Redbox users rent about 20% more movies then other more traditional movie rental stores. Redbox has sold more then 77 million dollars in DVD’s through their boxes from users who have decided to keep the DVD rather then return it. All in all a case can be made that Redbox is really helping the movie studios rather then hurting them.

Since Redbox is a new business model the movie studios are just unsure about how it will effect their bottom line. The fact is Redbox is increasing volume, providing savings back to the consumer and offering a more convenient way to rent movies. Over the next few years Redbox will be helping the movie studios rather than hurting them as they offer a more effecient way to purchase and rent movies.

The movie studios like any major cash cow business becomes stuck in the familiar old school ways of doing business and are uncomfortable venturing out and trying something new to increase sales. They see Redbox making all this movie money and they feel that Redbox is shaving profit margin from new DVD sales. The fact of the matter is that Redbox stepped up and provided a more affordable and convenient way to shop and rent DVD’s by paying a dollar a day from convenient Walmart red boxes.

I have bought atleast one Redbox DVD simply because I never returned it. I have rented more movies that I would have never rented before because of the convenience of Redbox and I enjoy the limited but good selection of top dvd rentals. I end up spending an hour or two in a DVD movie rental store but only about 5 minutes searching for a movie rental using Redbox.

The movie studios need to leave those little Redbox movie rental boxes in the Tyler Texas Walmarts alone. We Tylerites like our Redbox, they’re good for me.

Southern Utilities of Smith County

August 31st, 2009

I usually try to focus my writing efforts on businesses I can endorse (at least in some measure). This time however, I find it necessary to shine the rays of critism on one of the  worst companies with whom I have ever had the misfortune of doing business.

For those citizens of Tyler who to get their water services from the city, be thankful that you need not do business with Southern Utilities. The fact that they have a monopoly on area water services outside the city proper allows them to charge whatever they will for the absolute minimum in return. The aforementioned monopoly has also served to insulate the public relations department (such as it is), from the companies reputation in the community. I have yet to encounter an institution (aside from the IRS perhaps), which cares less for the customers it is supposed to serve.

Upon returning home to Tyler, I purchased and moved into my new home. When the time came to activate the usual services I was able to open new accounts easily and usually over the phone except in one instance. The single most frustrating service to open was not in fact the gas, nor was it the electricity. The most difficult company to deal with, the one with the most red tape and unhelpful staff was in fact our local water company, Southern Utilities. I had potentially hazardous soruces of power and energy activated in my home by simple phone call, and yet, taking a shower required the former owner of my house (fortunately a friend of mine), to visit during his busy work week in order to remove his name from the account and validate the sale of the house.

But this initial hassel was only a sign of things to come. The customer service department does nothing to make the company more approachable. They have no on line services to allow the costumer an easier way to pay, nor will they take payments over the phone. For those financially challenging months which require a personal visit to ensure on time payment, its best to arrive before four o’clock  since the lobby closes at that time. To be fair, the drive through window is now open until five, but you had better be prepared to pay in cash or with a check. Southern Utitlities does not accept either credit cards or check cards. And should you find yourself making a late payment, you can forget about an extention. Rarely are those granted, and when they are, you can bet a lot of stamina was required to win the argument.   

But these complaints are not new. Virtually everyone I know who has dealt with S.U. tells me the same stories. So how can the company work its way back into the customer’s good graces? For starters get a website, one that provides easier access to individual accounts. This would necessitate allowing people to pay by card, also an improvement. Generally, at least appear to make an effort! Try to convince me that my satisfaction is actually important.

On a scale of one to five I have to give Southern Utilities a one.  So if you’re new to Tyler and you have a choice of water companies, take the one that’s not Southern Utilities you’ll be glad you did. Southern Utilities is located on Broadway just north of the down town square.