After
CyberHome kept failing to pay royalty charges to Philips for use of its patents,
Philips eventually filed a complaint, which has now resulted in US officials
seizing some 20,000 DVD players and recorders from CyberHome's Californian
warehouse. According to Philips, CyberHome has not paid any royalties in a
very long, which accumulates to some $22 million dollars in debt. Not only
is this illegal, but also gave them unfair competition in the market against those who are licensed.
Philips had revoked CyberHome the right to
manufacture or sell devices using Philips components back in March and
complained to the authorities late May. The raid resulted in eight truck
loads of devices being taken from the warehouse worth over $2 million in retail
value. The company can face up to three years in jail and up to $500,000
in fines for the use of a counterfeit mark. Thanks to tehGrue for letting us know about
this news:
Federal and local authorities have taken more than $2 million worth of the devices from CyberHome Entertainment USA, a Fremont-based affiliate of CyberHome Taiwan, after the company failed to pay a $22 million licensing bill owed to Philips Electronics Co., which owns the trademark to some technology used in the machines, Santa Clara County Deputy District Attorney James Sibley said. No one has been arrested, but the investigation '” which could involve other trademark infringements '” is ongoing, Sibley said. Some further info can be read on Engadget here. |
This raid gives a clear sign that selling unlicensed DVD players and
recorders can be just as risky as selling bootleg DVDs. For the retail
stores, this means that they will have to turn to ordering extra stock from
competing players.
Source: Inside Bay Area
