China?s exports of DVD players in the third quarter of this year decreased 20%-30%.
This was due to an investigation of patent infringement by the US International Trade Commission (ITC) under Section 337 of the Tariff Act of 1930, which is specifically designed to protect international intellectual properties, according to Taiwan makers of optical-disc drives (ODDs).
Zoran, a designer/producer of DVD-player ICs, filed charges in April this year with the ITC against China-based makers of DVD players for infringement of Zoran patents. The ITC therefore began a Section 337 investigation of the accused China-based makers, the Taiwan makers indicated.
In response to the investigation, China-based makers such as Shinco Electronic stopped exporting DVD players to the US, to avoid potentially punitive customs duties, which accounted for the reduction in third-quarter exports to the US.
In addition, a competitive local market in China pushed the retail price of DVD players to as low as 500 yuan (US$60), driving some China-based makers of DVD players to switch production to EVD (enhanced versatile disc) players, the makers pointed out.