Philips introduces compliance reward program for CD replicators


Philips has announced it will have a reward program for CD replicators that produce strict like Philips has described it in their licenses.

The new reward could be a result of the current problems Philips has had with CD producers that add copy protections to their CD's, it could also be a sign to CD-R disc makers that have produced bad quality CD-R's in the past.



As licensor of the main patents relating to Compact Disc replication, Philips has
announced a Compliance Reward Program for CD­Audio and CD­ROM replicators. This program is available to all licensees who fully observe their obligations under the CD Disc Patent License Agreement.

The purpose of this special program is to reward loyal, compliant licensees for their support of the CD licensing program. It is also intended to encourage companies which are not yet compliant to join the licensing scheme under more favorable conditions than under the existing program.

With effect from 1 July 2002, under the CD license program that Philips administers also
on behalf of Sony, compliant licensees will be charged a royalty fee of only USD 0.0175
per replicated disc, instead of the currently applicable rate for CD­Audio and CD­ROM
of USD 0.03.

The reduction is open to licensees who are in full compliance with the conditions of their licensing agreements and the additional conditions of the Compliance Reward Program.

All with all this is good to consumers, because in the CD/DVD industry it's all about standards. If you buy a CD you want to play it in all players and the current standards make sure you can !

Source: Philips

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