AfterDawn: News

Four CD-R makers take on Philips

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

Written by: James Delahunty @ 9 Sep 2007 19:48

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• 8 comments

• plazma247

  Seams to me what the 4 of them should do is point out to the goverment how much its going to cost the country when all 4 off them decide to F off to china or else where and setup a new factory where they are not restricted by phillips agreement.

  10.9.2007 08:25 #1

• thekingo7

  CMC Magnetics is crap though I personally hope they do go under.

  10.9.2007 18:59 #2

• plazma247

  Riteks not tho, they do some very good disk :)

  11.9.2007 03:34 #3

• thekingo7

  yes but CMC copies Ritek and Ridata. Which sucks for people who buy them think they are a high quality media.

  11.9.2007 03:59 #4

• borhan9

  well cmag is crap i just think that they should not impose their software on anyone.

  11.9.2007 14:49 #5

• Steve83

  Why can't I make the same argument about the unfair restrictions on DVD, CD, & other digital media licenses I'm forced into when I buy movies & music???

  13.9.2007 16:37 #6

• gohil

  These 4 media groups produce nothing but garbage. I hope that they all go under.

  14.9.2007 08:39 #7

• thekingo7

  ritek is great.

  14.9.2007 18:43 #8