US Trade Commission rules not to block imports of CD-R discs from Taiwan makers

Digitimes reports that the The US International Trade Commission (ITC) was
asked by Philips to block CD-R discs that were manufactured in Taiwan because
the companies involved dit not pay their patent royalties and infrige on six of
its patents. The companies involved are Princo, Digital Storage Technology and
Gigastorage.


Philips
took the legal action against GigaStorage and Digital Storage Technology
in June and then added Princo to the case in July. The ITC's ruling does
confirm the validity of the six patents claimed by Philips involving the
manufacturers of CD-R and CD-RW discs and allows Philips to demand
Taiwanese makers to make royalty payments for the use of its patents.

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Nevertheless, sources at Taiwan's CD-R disc makers said that
the initial determination has profound implications for them, as it will
help them boost sales to the US market before they reach an agreement on
royalty payments with Philips. The ruling might in effect force Philips to
lower its request for the amount of royalty payments. It will also place
Taiwan's makers of DVD-R discs at an upper position when they discuss
Philips in the next round of negotiations on the similar royalties on
DVD-R and DVD+R discs, sources
said.

Source: Digitimes.com

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