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Thursday, November 06, 2003
Philips reacts in the Administrative Law Judge's decision for CD-R/RW licensing

Philips stated that the Administrative Law Judge's (ALJ) initial determination in the CD-R/RW disc case is erroneous and that there are valid and persuasive legal arguments justifying reversal of the decision.

As a result, on 5 November 2003 Philips has asked the International Trade Commission (ITC) to review the ALJ's decision.

According to Philips .."Numerous patent license programs of the type in this ITC case, in which one or more companies offer a license under a collection of patents that are complimentary and necessarily used in the manufacture of a product, have been previously reviewed and approved by the Anti-Trust Division of the U.S. Justice Department as being pro-competitive. This type of licensing is advantageous because it reduces transaction costs for both the licensees and the patent owners, facilitates lower royalty rates, reduces uncertainty about technology rights and costs, and decreases time to market for new products. Offering technology on the same terms and conditions to all interested parties worldwide promotes competition and growth in the industry and is favorable for consumers. Philips is confident that the ITC will issue a final determination that is in the best interest of the optical media industry, consumers and patent owners..."

Philips will continue to offer licenses and carry out its licensing activities as usual in compliance with the law as it exists, and enforce its patent rights for any patent infringement.

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