CMC, Ritek and others, file fair trade suit against Philips over CD-R royalties

CMC Magnetics, Ritek, Prodisc and Daxon have filed a fair trade suit against Philips over CD-R royalities. The company argue that Philips asks too much royalties for each CD-R disc. The licensing scheme makes that royalties make up about 30% of the cost price of a CD-R and also requires the CD-R manufacturers to to use Philips' registred trade mark in their CD-R discs.