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CMC, Ritek, Prodisc and Daxon file fair trade suit against Philips over CD-R royalties


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Not that Philips isn't gouging them. IMO they all make Land Fill Media anyway!




CMC Magnetics and Ritek, the top two Taiwan-based producers of optical discs, as well as Prodisc Technology and Daxon Technology, two second-tier makers in Taiwan, on September 7 jointly filed a charge with Taiwan's Fair Trade Commission (FTC) against Royal Philips Electronics for violation of fair trade law due to unreasonable royalty charges for blank CD-R discs, according to a September 10 press release issued by the Taiwan Information Storage Association (TISA) on behalf of the four companies.


The four companies have retained Tsar & Tsai law firm as their legal representation for the suit, TISA indicated. While Taiwan, China and India are the world's major supply sources of blank CD-R discs, Philips has imposed its Veeza licensing scheme on Taiwan makers but not on fellow makers in China and India, nor on makers who have a special relationship with Philips. This poses as serious discrimination against the Taiwan makers, TISA said.


Under the Veeza licensing scheme, in addition to having to pay high royalty fees, accounting for over 30% of their OEM prices, and Taiwan-based makers are also obligated to use Philips' registered trade mark in their CD-R discs, TISA indicated.

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