James Delahunty
9 Sep 2007 19:48
Four manufacturers of black CD-R discs are prepping legal proceedings against Royal Philips Electronics over the Veeza licensing program. The four companies, CMC Magnetics, Ritek, Prodisc Technology and Daxon Technology accused Philips of imposing the "unreasonable and discriminating" Veeza licensing program upon them, according to a press release issued by the Taiwan Information Storage Association (TISA).
The companies are claiming that the high royalty charges severely limit their ability to operate in the market for blank CD-R discs. Additionally, the companies claim that the licensing system discriminates against them because Philips couldn't subject Moser Baer India (MBI) or Chinese manufacturers to Veeza.
This makes it very difficult for the four companies to compete with the Chinese makers or MBI in several markets. The four companies will demand that Philips return paid royalty fees in excess of reasonable amounts and duly compensate for their lost business due to the discrimination of Veeza licensing.
Source:
DigiTimes