Philips/Sony global CD licensing cleared by EU

August 8, 2003

Some replication companies (CD press plants) filled complaints against Sony and Philips due to their licensing for the CD format. According to these companies the license was opaque and license fees were not in line with the profit margins. The European Commission has cleared the complaints.

The Commission found that the 2003 SLA (standard joint license agreement), by which Philips and Sony offer access to their patents for any one or more of the different CD disc types, whilst each retaining the right to license their patents separately, does not restrict competition," the Commission said in a statement.

The clearance ends the Commission's investigation of the Philips/Sony CD license agreement, but Lueder said there was still one complaint outstanding.

"We hope to settle that soon by convincing the complainant that this package here is in the best interest of the replicators and that they can have access to this essential technology on reasonable terms, paying royalties that are in line with the actual value of the product license."

Source: Reuters.com