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Thursday, December 20, 2007
Philips to Lower CD-R Royalty Fee


Philips will reportedly lower its royalty rate for blank CD-R discs under its Veeza licensing system, according to a report.

The fee will be reduced by 80% from US$0.025 per disc to US$0.005 as it continues negotiations with Taiwan-based CD-R disc makers to renew their licensing contracts, according to the Chinese-language newspaper Economic Daily News (EDN).

Philips has been trying to establish its Veeza licencing scheme for many years now, as Taiwanese and especially Chinese-based makers of CD-R discs refused to accept it. But currently, with the demand for CD-R discs to decline as DVD and possibly Blu-ray come on the scene, Philips may considering to further make its licensing requirements more attractive to disc makers.

James Li, general manager for the Taiwan Office of Philips Intellectual Property & Standards, declined to confirm the newspaper article, Digitimes.com reports from Taiwan.


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