Philips wins lawsuit to claim over 7 billion-yen royalty payment from Taiwan CD-R maker Princo
The Taiwan Intellectual Property Court (IPC) on April 23 determined that Princo, a Taiwan-based maker of blank optical discs, shall pay a total of 7.606 billion yen (US$77.6 million) to Royal Philips Electronics for CD-R royalty fees and interest due to delay in payment, according to the court.
Because Princo defaulted on CD-R royalty payment for the period from the fourth quarter of 1997 to the fourth quarter of 1999 (Philips terminated CD-R licensing in the first quarter of 2000), Philips launched legal proceedings against Princo at a district court in northern Taiwan to claim the payment, according to industry sources.
The district court on August 15, 2008 made a decision in favor of Philips that Princo shall pay a total royalty fee of 2.354 billion yen, plus interest, the sources said, adding Princo then appealed to the IPC.
According to James Li, general manager for the Taiwan Office of Philips Intellectual Property & Standards, Philips has provided a guaranty deposit of NT$224 million in order to start provisional execution, such as putting legal attachment on Princo's factory buildings and equipment.
In response, Princo indicated it will provide a counter-guaranty deposit to prevent Philips' provisional execution and will appeal to the Taiwan Supreme Court.