According to DigiTimes, GigaStorage granted the right to use intellectual property normally subject to five Royal Philips Electronics CD-R patents in Taiwan. Although the ruling was expected, Philips found it regrettable and filed an administrative appeal. GigaStorage and Philips had previously failed to reach an agreement on a reduction in royalty charges. So, on July 30, 2002 GigaStorage applied, under Article 78 of Taiwan’s Patent Law, to the IPO for an effective waiver of the five patents.

The lawsuit involved the sensitive issue of protecting foreign intellectual property rights while promoting domestic industrial development for optical discs. Taiwan’s IPO has been very careful in examining the case.

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