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Microcap & Penny Stocks : cube and mpeg vs. tri-vision and v-chip as an investment

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To: esterina who wrote (63)9/29/1998 4:02:00 AM
From: stak  Read Replies (1) of 75
 
Less than a decade ago, the suggestion would have invited scorn. No one thought a Scarborough firm would control the international market for one of the most talked about inventions in decades.

But the Siddiqui brothers have had the last laugh. Today, through their company Tri-Vision International Ltd., the brothers hold worldwide manufacturing and distribution rights to a product that could revolutionize television viewing for generations to come - the V-chip.

The device is based on a simple encoding-decoding principle: TV viewers, using a remote and decoder, set threshold levels for violence, language and sexual content on their televisions.

American broadcasters encode ratings into all their programs, which a V-chip decoder reads. Only programs with ratings less than the thresholds set by viewers get through, while the rest are blocked.

In a few weeks, the V-chip will flood into North American markets.

Ironically, it wasn't with any messianic vision that the Siddiqui brothers founded Tri-Vision in 1986. Their business objective was modest, almost mundane - to refurbish cable TV equipment.

''There was always that disquieting feeling that we ought to be doing something more. We just couldn't figure out what,'' recalls Cam, who is the company's managing director.

Both brothers had a strong background in research and development. While Cam had worked at Litton Systems Canada Ltd. developing testing equipment for F-18 aircraft, Najmul had conducted research on cruise missile guidance systems.

'My brother and I are both family men. We saw that by promoting this (V-chip) technology we were doing a service: to ourselves, to the community, to the world.'

Cam Siddiqui, co-owner of Tri-Vision International

''When we started our company, we were still searching for an all-compelling business goal,'' says Najmul, president and CEO. ''We were willing to invest time, energy and funds in research, but needed a product that would justify the investment."

The Siddiqui brothers were not the only ones introspecting. Thousands of kilometres away in British Columbia, Simon Fraser University professor Tim Collings was grappling with a disturbing debate - the impact of TV violence on impressionable minds. It was 1989, the year 14 engineering students in Montreal were massacred by Marc Lepine, who many observers felt was influenced by TV violence.
The young engineer felt a desperate need to address the growing problem. Four years later, in 1993, he was ready with the first V-chip prototype.

The V-chip was immediately recognized as a revolutionary technology and in 1995, Collings was invited to profile the device to international political leaders at the G-7 summit. The concept found universal acceptance. However, much work remained.

It was around this time that the Siddiqui brothers met Collings. The encounter was a tryst with destiny - both for the inventor and the Tri-Vision bosses.

''We immediately recognized him (Collings) as a man after our own heart. He wasn't just an inventor. He was an ideologue, who recognized a social problem and wanted to rectify it,'' Cam says.

''My brother and I are both family men. We saw that by promoting this technology we were doing a service:

to ourselves, to the community, to the world.''

Collings joined the Tri-Vision board of directors and, with the assistance of the company's dedicated, innovative and highly skilled technicians, began work on a consumer-oriented V-chip.

When the Siddiqui brothers acquired the market rights to the V-chip, business success may not have been their chief motivation. But if U.S. sales projections are any indication, Tri-Vision is sitting on the proverbial pot of gold.

U.S. sales are being overseen by Ingram Entertainment, which Tri-Vision has an exclusive distribution agreement.

''Ingram committed to us a minimum selling performance requirement of 1.5 million devices within the first 12 months,'' says Tod Grunberg, Tri-Vision's vice-president, marketing. ''With a suggested retail price of $80, we're looking at sales figures close to $120 million in the U.S. alone.''

Tomorrow, publicly traded Tri-Vision will launch its V-chip product line, V-gis, with a decoder set-top box. During the initial phase, the product will be marketed in over 200 retail outlets located in the Midwest and southern U.S.

The Canadian Radio-television and Telecommunications Commission approved the V-chip in mid-1998. Canadian broadcasters will soon have their ratings system in place and the V-chip will be on the market by the end of the year. Beamscope Canada Inc. is handling distribution.

A ruling by the U.S. Federal Communications Commission last March is expected to give V-chip sales a big boost. The FCC ruling requires that American TV manufacturers ''include V-chip technology on at least half their product models with a picture screen greater than 33 cm (13 inches) by July 1, 1998, and the remaining half of such models by Jan. 1, 2000.''

'Who knows, it may actually help TV shed its idiot box image'
FCC commissioner Gloria Tristrani said at the time of the ruling that the V-chip would not relieve parents of their responsibility, but rather help them fulfil it.

''It allows parents to 'turn off' programs that they believe are harmful to their children while they are at work, at a PTA meeting, or at a Saturday night movie. It will not be a substitute for parents; it will help parents do their jobs.''

Major American broadcasters like ABC, CBS, Fox, TNT and NBC have already started encoding ratings systems in all their programs.

Meanwhile, the Siddiqui brothers have their sights set on markets far beyond North America.

Tri-Vision has signed a memorandum of understanding with the international conglomerate, Nichimen, to jointly introduce V-chip technology to Asian and European governments. Initial consultations with the Malaysian government and censor board have been successful.

''We had fairly long sessions with them,'' Najmul says. ''They were genuinely interested in understanding this technology and how it would help Malaysia.''

The brothers say it's crucial the V-chip gets international exposure to all parents.

''It may be just a small chip, but for parents it's a big deal,'' Cam says. With a laugh, he adds, ''Who knows, it may actually help TV shed its idiot box image.''




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