DigiTimes is reporting that Sony has signed agreements with several major Taiwanese producers of optical discs. Fixing royalty charges of 1.5%-3.5% for DVD-R/+R discs, according to some of the Taiwanese makers concerned.
Taiwanese makers are attracted by Sony's offer because they think the rate charged by Philips for its DVD-R patent, about US $ 0.06 per disc, is too high. The US International Trade Commission (ITC) will make its final judgment on Philips' suit against Gigastorage and Princo regarding infringement on its six CD-R/RW patents at the end of this month. The ITC's initial judgment, made in mid-December 2003, was favorable to the two accused Taiwanese companies, and this is very likely to remain unchanged at the ITC's financial decision, other Taiwanese makers pointed out. Taiwanese makers are hoping that Philips will soften its stance over the DVD-R royalty charge as the situation unfolds. |
The royalty charges will vary based upon on each maker's production capacity for DVD-R/+R discs and DVD+Rs. The large producers obviously get the best rates. In addition, Sony is offering a flexible payment plan if the company they are dealing with is in good financial shape.
Several Taiwanese makers are already jumping on board with Sony, such as CMC Magnetics, Ritek, Prodisc Technology, and also, Lead Data, Gigastorage, and Princo.
Source: DigiTimes
