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Philips revokes CD-R patent license from top manufacturers

by Steve Kerrison on 25 September 2006, 12:56

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CMC, Ritek, Prodisc and Lead Data. All are names that'll be familiar to many as manufacturers of recordable optical media. Only now it seems they may be unable to export their CD-Rs to Europe, following Philips' revocation of their patent licenses.

According to Taiwanese news website Digi Times, Ritek lost its license in May when it expired, while the other manufacturers appear to have lost theirs for breaching license agreements.

Interestingly, Philips is pushing a new CD-R patent licensing scheme known as Veeza, which in the words of Philips "will make it easier to sell licensed CD-R discs and tougher to sell unlicensed products". Well, it would make it easier, but only if the aforementioned Taiwanese manufacturers signed up to it.

Sources have suggested to Digi Times that Philips may be revoking licenses to pressure manufacturers into taking up the new scheme.

Daxon and E-Top still have CD-R licenses, but for how long? The companies that have been left license-less are planning to meet soon to work out what they're going to do. For whatever reason, it seems Veeza doesn't appeal to the CD-R manufacturers.



HEXUS Forums :: 3 Comments

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It'll lead to onerous new requirements that will push up the price of discs.

From the Veeza FAQ:
“The big difference with the old way of licensing is that under Veeza a shipment will be licensed and not a company. All shipments should be accompanied by a mandatory authenticity document, called Licensed Status Confirmation Document (LSCD). Other new elements are a logo that is embedded in the disc and a label with a serial number that will be mentioned on the package carton.”

Probably the most expensive part will be the admin costs involved in verifying that each package has the correct authenticity info. The discount on royalties under Veeza amounts to 1cent per unit, which may not cover the costs involved.
So yes, increased costs then. Personally, with external storage so cheap now, and wireless networking easily available, I hardly find myself using CDs or DVDs anyway…
so, will they be able to ship the CDs via the back door.. by not calling them CD-rs, or not atall?.. the (relatively) high cost of optical storage is really annoying as it is (by which i mean DVDs more than CDs, but still).. and pretty much all i care about with the whole 3rd gen of opticals now we've been so bored to death with it all