The man who invented the karaoke machine never patented it

The man who invented the karaoke machine never patented it

By Roberto A. Ferdman @robferdman December 18, 2013

Daisuke Inoue should be sitting on a fortune right now. Back in 1971 Inoue brought the world’s first karaoke machine to market. Had he patented his invention, the royalties from the device that now populates bars and homes all over the world might be worth millions. But he never did.Inoue, a struggling musician, first thought to make the machine when a local businessman asked him to record some songs of his on an open-reel tape recorder in keys that made it easier for him to sing along. “At that moment the idea for the Juke 8 [the first Karaoke machine] dawned on me,” Inoue recalls in an article from 2005 that was just re-published on The Appendix, an online “journal of experimental and narrative history.” Inoue’s invention, the Juke 8, which combined an amplifier, a microphone, a coin box, and an eight-track car stereo, quickly spread across Japan. “Within a year, my company was sending machines all over Japan,” Inoue notes. He says his firm made 25,000 Juke 8s altogether.

But without a patent there was no way for Inoue to prevent competitors from cannibalizing his business. While the first wave of rival devices didn’t undo Inoue’s company—he enjoyed over a decade of lucrative tape-based karaoke machine sales—growing competition and quickly advancing technology eventually proved too much. The advent of laser disc-based machines in particular made it impossible for Inoue’s company to keep up. “After laser discs came out, my company no longer manufactured karaoke machines,” Inoue wrote.

Others, however, including Daiichikosho, one of the first firms to introduce a rival device, have since made out like bandits (Daiichikosho is now the world’s largest karaoke company). Estimates of the size of the karaoke industry are hard to pin down, but one industry association estimated that it was worth ¥617 billion ($5.99 billion) in 2011 in Japan alone.

While it’s a bit unfortunate that the industry’s father has enjoyed little, if any, of karaoke’s commercial success, he has been recognized for his achievement. Inoue was awarded an Ig Nobel Prize, which rewards strange but thought-provoking inventions, in 2004. What’s more, Inoue claims he doesn’t even regret his decision not to patent his revolutionary musical device, since patenting it would have jeopardized its global influence. “Most people don’t believe me when I say this, but I don’t think karaoke would have grown like it did if there had been a patent on the first machine,” Inoue said.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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