Sony drops lawsuit; US Apex agrees to pay DVD royalties

I just posted the article Sony drops lawsuit; US Apex agrees to pay DVD royalties.

Yesterday we posted that Sony was sueing Apex because they claim that Apex imports and sells cheap DVD players into the US without paying the required licensing fees to Sony.

Today we read…

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The drive will cost $5 more from now on. :4

That’s the idea. Sony won’t compete based on quality or features, they’ll drive competitor’s prices up. That’s what “free market economy” means these days.

yeah but Sony and Phillips spent a lot of research money helping develop CD, and DVD technologies. Once the reasearch is done it doesn’t have to be done again. Other companies can just look at the blue prints and start mass producing without paying all the money it took to figure out how to build this technology. That’s not fair to Sony. Other companies are using technology that Sony spent a lot of money to help develop. If another company is making money off that research Sony is entitled to some of that money.

yeah, and do you think this money is only for paying the expenses of the research? one time the research is paid, no need for paying licenses fees anymore, right? And this year Santa Claus will bring us good DVD players from Apex, surely…

Yeah but they decide how much the technology is worth to them. If other companies don’t like paying the licensing fees, they should research, and develop their own media.

chsbiking is absolutely right (and one of the few voices of reason on this website). And don’t forget, for every dollar spent on successful R&D projects like DVDs, there is even more spent on other, unsuccessful projects. Companies like Sony are entitled to their licenses which allow them to recoup ALL of the developmental expenses, and then some. Otherwise, what motivation would they have to do any research in the first place? Sure APEX can make cheap DVD players, but that’s because they haven’t had to spend millions to develop their technology–they’re simply riding on the coattails of others. I’m glad Sony is finally getting their licenses.

I agree with you. But sometimes the licensing fees are very expensive. To tell you the truth, I don’t know if this applies to this case of Sony.

I don’t think in this particular case the fees are that much. However, I do think that if a company is charging outrageous fees it can start to become a very rude gesture.