Taiwan-based
PC vendor Acer announced on August 4, 2010 that the company will pay Chinese
Founder up to US$70 million for using Founder's brand name on Acer-manufactured
PCs to be sold in China in the next seven years, according to the Economic
Daily News of Taiwan. It is reported that the two companies have signed a
memorandum of understanding in May 2010 in Beijing to jointly cultivate the
Chinese PC market. Acer is expected to take charge of the Founder-branded PC
business, including planning, marketing, and supply chain management. Founder,
in turn, is projected to share its channel network with Acer and provide the
intellectual property rights needed to run business using Founder's brand name.
In
2009, Acer's share in the Chinese PC market was 3.1% and Founder 6.3%,
according to an August 5, 2010 report by the China Times of Taiwan. Acer
estimates that partnering with Founder would bring the company's revenue in
China to approximately US$2.5 billion in 2011.