Atlantic City, Hayes introduced the Bell 212-compatible Smartmodem 1200 for $699, the first practical all-in-one 1200 bit/s Bell 212-compatible modem. The earlier design was redesignated the Smartmodem 300. At the time, Hayes was one of the few modem companies with the capital and engineering wherewithal to develop entirely new modem architectures. However, this was only a limited competitive advantage, since it was not long before companies offering Hayes "clones" introduced derivative 1200 bit/s models of their own. The 1200 bit/s market existed for a relatively short time; in 1984 the CCITT introduced the v.22bis standard for 2400 bit/s operation. This was the first time that the CCITT's standard predated Bell's introductions, avoiding compatibility issues that had plagued earlier standards. Modem companies quickly incorporated v.22bis into their product lines. Hayes was no exception; the company introduced its v.22bis Smartmodem 2400 at US$549 in 1985 (the 1200 bit/s Smartmodem also remained available at a lower price point). Competition drove prices rapidly downward, and by 1987 a clone 2400 bit/s modem was generally available for around US$250. After 1987, modems increasingly became a commodity item. Hayes '302 In June 1983, Hayes and a number of other manufacturers were sent licensing demands by a smaller modem manufacturer, BizComp, who had filed a patent in 1980 but only received it in 1983. The patent covered the use of an escape sequence to switch between command and data mode, just like the Smartmodem. BizComp had already implemented the system in its modems in 1980, a year before the Smartmodem came to market. They offered a sliding scale of terms; an outright license was $2 million, but they would accept as little as $500,000 with additional per-unit fees. Hayes responded by licensing the patent outright for $2 million (). Hayes themselves also had a patent filing working its way through the system since 1981, although it mentioned the escape system and modes only in passing. Having obtained a license, they re-wrote their patent to include a lengthy section on the idea of a guard time, which the original Bizcomp patent lacked. They received the patent, 4,549,302 Modem With Improved Escape Sequence With Guard Time Mechanism, in October 1985. Hayes began sending bills to other manufacturers, charging 2% of the retail price per modem that followed the Hayes system, including those modems that had already been built and sold. This resulted in a number of companies launching a