"...Philips wish to show their appreciation of loyal licensees who are fully complying with the CD-R Disc Patent License Agreement. Hence, Philips is pleased to announce that we will offer, under certain conditions, to our loyal licensees who are fully complying with the CD-R Disc Patent License Agreement, the opportunity to participate in a “CD-R Disc Compliance Reward Program”. This CD-R Reward Program will be valid for the period of one calendar year, starting from January 1, 2001. It will expire on the 31 st of December 2001.
CD-R Licensees who apply and qualify for the Reward Program on or before March 31, 2001 will be granted an additional benefit. The program is open to all CD-R disc manufacturers who are in full compliance with the CD-R Disc Patent License Agreement. Loyal licensees will be able to benefit significantly from this CD-R Reward Program; the royalty under the Agreement remains 3% of the net selling price per licensed product with a minimum of 10 Yen.
However, under this special Reward Program, Philips will make available, to any applying and qualifying licensee, an alternative royalty rate of US 0.06 (six dollar cents). In addition to this, a special rebate on the CD-R royalties paid in the year 2000 under the CD-R Disc Patent License Agreement will be given back to the companies who qualify for the Reward Program on or before March 31st , 2001.
The purpose of this special program is to reward loyal, compliant licensees for their support of the CD-R licensing program. It is also intended to encourage non-compliant companies to join the license scheme under more favorable conditions than under the existing program. There is also a substantial benefit for those companies who apply for the scheme rapidly..."