GristyMcFisty found
his way to our news submit to tell us about some price changes
being reported in Royalties over at DigiTimes.
 Philips is planning to reduce its CD-R royalty charge from US$0.045 to US$0.035 per disc, according to the company's web site. However, Taiwan producers of optical discs have not responded favorably to the decrease in royalty charges since it is smaller than they expected. The decrease of only US$0.01 in Philips' royalty charge is too small to cover the recent drops in the makers' gross margins due to rising prices for the key component polycarbonate (PC), coupled with falling CD-R disc prices, the Taiwan makers noted. |
Taiwans disc makers were not impressed however. It's
their opinion that CD-R royalty payments should be placed on a sliding
scale percentage of their revenues. They argue that a fixed rate charge
cannot take into account all the different price fluctuations in the market for
costs that effect their bottom line.
Source: DigiTimes
