"...Ritek is said to have been working on renewing its patent contract with Philips Electronics NV. The new patent fee is reported to be lower than the US$0.045 for every CD-R unit which the Dutch high-tech giant charges CMC Magnetic, Ritek's rival. Ritek has declined to unveil the actual amount of the new patent fee ahead of clinching the contract renewal with Philips, but only admitted that the fee for renewal of the patent was relatively lower, and would be also eligible for other CD-R makers. However, the news does not concern CMC. According to the proviso in the patent contract that CMC signed, if Philips promises other CD-R companies a lower patent fee, CMC will enjoy the same treatment.
Ritek's Chief Executive Yeh Chwei-Chin, who is also the deputy head of Taiwan's CD-R industrial association, admitted that the anti-Philips alliance would find it more difficult to bargain with Philips for what they consider a more reasonable patent fee, after losing the two top CD-R makers, Ritek and CMC. Yeh vowed that Ritek would not abandon its efforts to vie for a fairer patent fee charge in favor of other CD-R companies, even though Ritek had been at the point of making contract terms.
While the disagreement between Taiwanese CD-R makers and Philips continues, Sony Japan is said to have formally notified Taiwan's CD-R companies that its representatives will be visiting Taiwan to negotiate its patent fees. Local CD-R makers expect that Sony is likely to be a more flexible negotiator, even though it has formally set its patent fee at US$0.025. As Sony expects to benefit by adopting the Philips strategy of charging CD-R patent fees on a case-by-case basis, Taiyo Yuden is expected to follow suit before long..."