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Thursday, February 21, 2002
Philips introduces compliance reward program for CD replicators


As licensor of the main patents relating to Compact Disc replication, Philips has announced a Compliance Reward Program for CD-Audio and CD-ROM replicators. This program is available to all licensees who fully observe their obligations under the CD Disc Patent License Agreement.

The purpose of this special program is to reward loyal, compliant licensees for their support of the CD licensing program. It is also intended to encourage companies which are not yet compliant to join the licensing scheme under more favorable conditions than under the existing program.

With effect from 1 July 2002, under the CD license program that Philips administers also on behalf of Sony, compliant licensees will be charged a royalty fee of only USD 0.0175 per replicated disc, instead of the currently applicable rate for CD-Audio and CD-ROM of USD 0.03. The reduction is open to licensees who are in full ompliance with the conditions of their licensing agreements and the additional conditions of the Compliance Reward Program.

Philips holds a significant number of patents relating to the various optical recording systems and standards. These patents are related both to the media (discs), as well as to the hardware (players, drives and recorders). Philips’ licensing and standards activities are handled by Philips Intellectual Property & Standards (IP&S).

Philips’ policy is to request reasonable royalties for the use of its patents as a remuneration for the research, development and other efforts invested by it in optical recording technologies, as well as in the present and future research and development of new technologies. Philips therefore licenses its patented technologies on reasonable, non-discriminatory standard terms and conditions to all interested parties.

For further information about taking advantage of the new CD reward program, licensees and potential licensees are invited to contact Philips Intellectual Property & Standards, from whom information about the various licensing programs and the applicable conditions can be obtained. Information about Philips Intellectual Property & Standards can be found at: www.licensing.philips.com.


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