Philips pulls CD-R license from CMC, Ritek, others

— 4:59 PM on September 25, 2006

The two leading manufacturers of optical discs in Taiwan—CMC and Ritek—have had their CD-R disc patent licenses pulled by Philips. Philips also revoked CD-R licenses from Prodisc and Lead Data, two smaller optical media manufacturers. According to Taiwanese industry sources, Philips says CMC, Lead Data, and Prodisc violated their licenses, and that its contract with Ritek simply expired. However, the sources suggest Philips' license-pulling is actually an attempt to push disc manufacturers into adopting its new Veeza licensing scheme, which is reportedly not being used by any Taiwanese manufacturers. The lack of a CD-R license is expected to block CMC, Ritek, Prodisc, and Lead Data from exporting CD-Rs to the U.S. and Europe, so the four companies intend to meet shortly and discuss the situation.

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