125 kHz RFID Tags Price Increase (please read for details)
Ken Gracey
Posts: 7,392
Hello,
The prices of the following RFID Tags sold by Parallax have been increased:
RFID Read/Write 54x85 mm Rectangle Tag http://www.parallax.com/product/28441
RFID Read 54x85 mm Rectangle Tag http://www.parallax.com/product/28141 (product page not showing)
RFID Read 25 mm Disc Tag http://www.parallax.com/product/32397 (product page not showing)
RFID Read 50 mm Round Tag http://www.parallax.com/product/28142 (product page not showing)
RFID Read Blue Eye Key Fob Tag http://www.parallax.com/product/28161
Normally, we don't advertise price increases, but in this case we will share because this would be in the interest of our customers - especially the volume users.
Less than a year ago we received a letter from a patent attorney requesting that we license these tags, that they are all covered under U.S. Patent Nos. RE40,145; 5,817,207; 6,036,099; 6,214,155; 6,514,367; and 6,557,766. These patents cover an epoxy encapsulation process, among other things. We had been sourcing the tags from a source in China (and will continue to do so). Now, we pay a license fee to the patent holder on each tag sold. Hence the cost increase.
All domestic sources of these tags elsewhere will eventually be subject to these royalties, if they are not already. In handling the negotiations, distributors like ourselves are requested to disclose their sales report (a customer listing) with monthly or quarterly license fee payments. Parallax did not agree to this request, as your order information is subject to our privacy policy http://www.parallax.com/company/policies-ordering-info#Privacy-Policies-And-Site-Specifics and we do not disclose any customer information to outside parties. In fact, your credit card numbers don't even enter our building when you place an on-line order.
Purchasing your RFID tags from Parallax ensures your personal information is not distributed, so rest assured that you will not be further pursued by patent holders since we (you and I) have already paid this licensing fee. If you are a domestic distributor of Parallax your license fee has been paid. In the event you receive a legal request for the same you should contact Julia Quillen, Project Coordinator (jquillen@parallax.com) to put the attorneys in contact with one another. Supply chains can become long, and they should have only one layer where license fees are paid.
The RFID tag quantity prices will return shortly, as well as the couple of missing web pages. Our Purchasing Manager may have substituted other approved-tag sources that use a different stock code but are a similar product. And with uncertainty, volume prices were removed by our Director of Sales and Marketing. If you are a volume user of over a thousand units, contact us for a quote better than the web site shows you. We will still have very good prices in volume for our RFID products.
We are sorry for this increase. Because we use our time the way you'd want us to [on Propeller designs and educational support instead of legal battles] this issue eventually had to be put behind us.
Sincerely,
Ken Gracey
The prices of the following RFID Tags sold by Parallax have been increased:
RFID Read/Write 54x85 mm Rectangle Tag http://www.parallax.com/product/28441
RFID Read 54x85 mm Rectangle Tag http://www.parallax.com/product/28141 (product page not showing)
RFID Read 25 mm Disc Tag http://www.parallax.com/product/32397 (product page not showing)
RFID Read 50 mm Round Tag http://www.parallax.com/product/28142 (product page not showing)
RFID Read Blue Eye Key Fob Tag http://www.parallax.com/product/28161
Normally, we don't advertise price increases, but in this case we will share because this would be in the interest of our customers - especially the volume users.
Less than a year ago we received a letter from a patent attorney requesting that we license these tags, that they are all covered under U.S. Patent Nos. RE40,145; 5,817,207; 6,036,099; 6,214,155; 6,514,367; and 6,557,766. These patents cover an epoxy encapsulation process, among other things. We had been sourcing the tags from a source in China (and will continue to do so). Now, we pay a license fee to the patent holder on each tag sold. Hence the cost increase.
All domestic sources of these tags elsewhere will eventually be subject to these royalties, if they are not already. In handling the negotiations, distributors like ourselves are requested to disclose their sales report (a customer listing) with monthly or quarterly license fee payments. Parallax did not agree to this request, as your order information is subject to our privacy policy http://www.parallax.com/company/policies-ordering-info#Privacy-Policies-And-Site-Specifics and we do not disclose any customer information to outside parties. In fact, your credit card numbers don't even enter our building when you place an on-line order.
Purchasing your RFID tags from Parallax ensures your personal information is not distributed, so rest assured that you will not be further pursued by patent holders since we (you and I) have already paid this licensing fee. If you are a domestic distributor of Parallax your license fee has been paid. In the event you receive a legal request for the same you should contact Julia Quillen, Project Coordinator (jquillen@parallax.com) to put the attorneys in contact with one another. Supply chains can become long, and they should have only one layer where license fees are paid.
The RFID tag quantity prices will return shortly, as well as the couple of missing web pages. Our Purchasing Manager may have substituted other approved-tag sources that use a different stock code but are a similar product. And with uncertainty, volume prices were removed by our Director of Sales and Marketing. If you are a volume user of over a thousand units, contact us for a quote better than the web site shows you. We will still have very good prices in volume for our RFID products.
We are sorry for this increase. Because we use our time the way you'd want us to [on Propeller designs and educational support instead of legal battles] this issue eventually had to be put behind us.
Sincerely,
Ken Gracey
Comments
But I guess I see what you mean.
http://stopbadpatents.internetassociation.org/
Drew Curtis: How I beat a patent troll