AfterDawn: News

20,000 CyberHome DVD Recorders seized

A task force led by the Federal Bureau of Investigation (FBI) has seized more than 20,000 CyberHome-brand DVD Recorders alleging that they use Philips' patented technology without a license. The task force (known as REACT) obtained a search warrant for the warehouse after being tipped off by Philips. CyberHome markets DVD players and recorders and also portable devices that can be found in some of the biggest chains in the U.S., including Best Buy, Circuit City, Fry's, Target and Wal-Mart.

The task force said that the raid was "part of an ongoing investigation into the illegal manufacture and sale of products bearing counterfeit trademark." Under California laws, punishments for the manufacture, possession, or sale of more than 1,000 items bearing a counterfeit mark include up to three years imprisonment or fines up to $500,000.



The recorders were brought away in eight loads with an estimated retail value of more than $2 million. "CyberHome has been using Philips DVD technology in its DVD players and recorders for a very long time now without paying royalties," said a spokesman for Philips Electronics North America.

"Their debts currently are a multimillion amount of dollars. At this moment, CyberHome is not licensed at all, so they infringe upon our patents. This is illegal, and it also creates unfair competition in the market, as many other companies are licensed. We always want to find solutions in a peaceful way, but if companies do not respect our IP, we are forced to take legal steps." the spokesman added.

Source:
Twice

Written by: James Delahunty @ 17 Jun 2006 14:54

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• 27 comments

• mknapper1

  i hope they don't brake into my house and take my dvd recorder
  

  17.6.2006 15:39 #1

• borhan9

  This story is a bit strange. Their a company but not really!!!??? I do understand the reson dor the search and seziure of the products.
  
  Guys at least make it a legal business transaction and you wouldn't be in hot water.

  17.6.2006 16:44 #2

• ZippyDSM

  this is what you get when you coddle up with china and other slave wage contrys,your tech gets stollen and sold at walmart!
  
  but do they care...no....its a never endign cycle....

  17.6.2006 17:00 #3

• BIGTOXY69

  Sounds like the deal Daimler-Chrysler had with the chinese ! They set china up with a plant to manufacture Jeep Branded vehicles - Like the JEEP cherokee ect. And on the face of it , it seemed like a good deal for the Chinese & Daimler-Chrysler ! All was going well Until a Chrysler executive was in china and saw lots of Jeep vehicles without Jeep markings or insignia ! What happened was the Chinese were making Jeep knock off's and selling them out the backdoor! when the executive questioned the Chinese plant manager he replied that " You should be happy we copied them well" needless to say that killed that deal!Philips & other giant tech companies make money off their patenrs by liscensing their technology and evidently CYBerhome was not paying for philips tech but using it anyway & they got caught!

  18.6.2006 05:38 #4

• asoggy

  According to the spokehole for Phillips, if they known for a long time that CyberHome was using their technology without permission, why did they take so long to go after them?
  

  18.6.2006 11:54 #5

• lxhotboy

  Well the longer they waited them more money they would be entitled to. LOL....

  19.6.2006 03:43 #6

• daemonzx6

  I completely understand Philips' reasoning for this, but however, I do not see how it has become the responsibility of the FBI to enforce copyright. And seriously, if Philips has known about their copyright ifringement this whole time, why did they allow it for so long?

  19.6.2006 05:19 #7

• asoggy

  Yeah, FBI should be doing other things like CHASING DOWN OSAMA BID LADEN and securing the U.S. border; not screwing around with copyright infringements.
  
  

  19.6.2006 09:45 #8

• shraven

  ...well yeah, but you know copyright infringers support terrorists, so this is chasing terrorists... at least that's what some say.

  19.6.2006 11:20 #9

• ZippyDSM

  asoggy
  Osma is in pakistan being treaded like a king by some group of nuts there 10 to 1,besides No one cares about Osama its the oil and the back room deals they make they care about 0-o

  19.6.2006 14:43 #10

• likwidst8

  Hehe...the ultimate irony...I work for Philips and own a Cyberhome DVD recorder....MWAAAHAHAHAHAHA. I tell ya...serves 'em right...we have an employee store...with the discounts we receive their DVD Recorder is STILL more than 2x what I paid for my $99 Cyberhome!

  19.6.2006 17:37 #11

• dbminter

  Wait a moment... did Philips recently annouce they were getting OUT of the home DVD recorder business...? Could it possibly be related...? :)

  23.6.2006 11:04 #12

• resinger

  They should have seized them because they're junk. But I guess if they got Al Capone for tax evasion....

  23.6.2006 14:31 #13

• ZippyDSM

  dbminter
  soemthign liek that you see with all the small end cheap china manufators pumping out either parts or units theres no point in a high brand makeing stuff that wont sell,the'll move on to soemthing else....then the china rew with start copying it and so on and so forth....altho I'd love to see a 360 knock off or a PS3 knock off.....that would kinda be sweet soemthing like a PS3 that can do PS3 games but cant do HiDef dosnet have blue ray and sales for 300ish *L* that would realy get them where it hurts!

  23.6.2006 14:55 #14

• likwidst8

  ha! Better yet...a super-duper all-in-one sys...from Commodore 64 up to PS3! Yeah, yeah, I know...emu & roms....still....wouldn't it be sweet to see?
  
  <drooools>

  23.6.2006 19:50 #15

• ZippyDSM

  likwidst8
  have you seen what modders ahve done to the Xbox its a complete emulation and gmaeing machine the only thing it lacks if a full time Comp OS,and the PS3 has that from the start...realy in 4 years the PS3 might be a all in one monster!
  
  ut for at least 2-4 years I dont hav the time oeny or effort to waste on a new system!

  23.6.2006 21:19 #16

• likwidst8

  Yeah, I definitely saw that...I was thinking more of a "pie in the sky" type idea where, there were mutiple slots for 5 1/4" disks, NES cartridge slots, SMS Cartridge slots and, hey, why not a TurboGrafx 16 card slot just to complete the package...lol, you know one of those ideas where it would be 100% not cost-effective for anyone to ever make, but just sweet to wish for. lol, personally I'd rather use the roms on my PC, but damn that would be nice! lol

  23.6.2006 21:35 #17

• dbminter

  Ah, a unit that would play the media, too, and not just the emulated ROM's?

  25.6.2006 20:42 #18

• likwidst8

  yeps, hehe. Alas...I don't think it would ever be possible to see that kinda of corporate cooperation...

  26.6.2006 02:56 #19

• bzboarder

  a little funny I think, especially since if they really are doing illegal stuff, shouldn't bestbuy stop selling this? http://www.bestbuy.com/site/olspage.jsp?skuId=7032784&type=product&id=1099395252109

  26.6.2006 18:04 #20

• Recording

  We own a number of DVD Recorders. Based on their performance they have stolen bad technology. If you are going to rip off another brand, at least rip off one that works well. We use all brands and we have the most trouble with CyberHome and Phillips. I would have ripped off RCA or one of the other brands that work well.

  28.6.2006 06:06 #21

• Quillion

  I've had one of the dvr 1600 Cyberhomes bzboarder shows since Christmas -it's a great machine -In UK it retails at -£80 (about 145$) but our prices are always a lot higher, so here it's a bargain. It records & plays fine quality on any disc I throw into it.

  28.6.2006 09:33 #22

• burninmad

  I got the Cyberhome 1600mu at Circuit City in May 06.I had Disc Errors right off the start.I FINALLY got some recording done.Different makes iI tried like Fuji(recommened by Cyberhome)Did the Worst!The Sony DVD+RW did best.Now It won't even play commercial DVD's or a CD my sis sent for Christmas! I get "pause" during recording,jumping back and forth between recording and pause.Now I can't do anything with it.I got what I paid for ,but when on fixed low income,gotta do what we can to try and get these "unaffordable" things.My life is Non Ambulatory ,so Video is my Life!Circuit City was ABSOLUTELY NO Help!Actually made me feel worse,physically!From what I been gathering this DVD recording may not be ready yet?Glad I'm only out $79.99!They got a "special at WalMart for $58.88!It doesn't even show who makes it ,or a name ,but HEY,I'm a Ramblin,Gamblin,kinda guy!Gotta have my TV!Anybody doin a "Class Action" to Cyberhome?,Oh ,I guess they already spent our money ,anyway!Merry Christmas Cyberhome!Circuit City and ALL you other companies that Don't Back what you sell!Bah Humbug!

  19.12.2006 10:24 #23

• Quillion

  Sorry to hear your tale. I had a couple of errors when I 1st used, & downloaded & flashed a firmware update, which sorted the issue. Go here: http://www.cyberhome.de/en/Downloads-index-req-viewsdownload-sid-35.html
  
  I find it works fine with the 4 or 5 disc makes I've used -from some riteks to Mr. DVDs & Tesco (UK Supermarket own brand), + & - DVDR & DVDRWs.
  You may also find some answers here http://www.nerd-out.com/forum/viewforum.php?f=34&sid=1ee5011898165ef4a8aae5c5bbde2df9
  Best of luck!

  19.12.2006 11:58 #24

• burninmad

  I opened up the general menu and my version's last 3 digits are 540,which is not listed in the firmware updates.I have the 1600mu bought in May 06.Thanks for your help,I can't get this thing to do anything but format an Office Depot +DVDRW and otherwise won't recognize ANYTHING!I think I'll wait till after Christmas sales,and stay away from Circuit City,and call a Manufacturer BEFORE I find out if they're still in business!Thanks "BurninMAD!

  21.12.2006 09:32 #25

• CYBERCRAP

  I'll give the FBI my busted-ass CYBERHOME [color=red]CRAP![b][/color][/b]Wish I could be in on the friggin bust!

  5.1.2008 02:17 #26

• tonywewe (unverified)

  i have many cyberhome and liteon dvd recorders and cant get service because the company left fremont calif with no forwarding info and cant get help from best buy where the units was bought

  12.4.2012 15:29 #27