In the patent infringement case between Philips and CD-R and CD-RW disc manufacturers Princo and Gigastorage, the US Court of Appeals for the Federal Circuit (CAFC) overturned an unfavourable for Philips decision of the U.S. International Trade Commission (ITC).

Philips filed this case with the ITC in 2002 seeking to prevent unlicensed CD-R and CD-RW discs from entering the United States. The ITC had found in March 2004, that six Philips patents were valid and infringed by the manufacturers, but also determined that the patents were unenforceable because of patent misuse. After Philips appealed, the CAFC held that the ITC?s legal analysis was incorrect and remanded the case to the ITC for further proceedings consistent with its opinion.

The judgment of the CAFC follows previous rulings earlier this year in another court case between Philips and Princo in which the United States District Court in the Southern District of New York found that Princo infringed each of the six patents in suit, dismissing their antitrust claims and defence of patent misuse, and granting an injunction forbidding further sales of the CD-R and CD-RW discs by Princo in the United States.