In its role as a technology provider Philips has always offered technologies to third parties by granting licenses. Despite many efforts by Philips, the companies involved in the above-mentioned case did not pay royalties for the use of CD-R and CD-RW disc technology invented by Philips. As result, Philips was forced to take legal steps to enforce its intellectual property rights in this area.
A trial on the amount of damages Princo and Gigastorage will have to pay because of their infringement was stayed pending the outcome of an appeal it is expected Princo will file with the Court of Appeals for the Federal Circuit. Unless Princo is able to overturn the District Court's decisions, Princo and Gigastorage will have to pay patent infringement damages to Philips for all prior unlicensed sales of CD-R and CD-RW disc, including damages for the period during which the appeal was pending.
Ben Beune, Patent Licensing Director and Senior Vice President of Philips International, said, "We are obviously pleased by the decision of the District Court finding infringement of the patents in suit and that defendants claim that Philips misused its patents is without merit. Philips is also gratified that defendants? claims of violations of antitrust laws have been dismissed."