ITC of the U.S.A. Makes the Ruling Favorable to the Disc Manufacturers in Taiwan. Philips Requests for Review. Negotiation for the Royalty on DVD Is Suspended Temporarily.

Administrative Law Judge (ALJ) made their initial decision that in the case regarding the patent dispute between Philips Electronics, Gigastorage, and Princo Corporation, Philips shall not execute the injunction order compulsorily. Reacting to this decision, Philips had formally requested International Trade Commission (ITC) for review and harshly criticized that such an initial decision was erroneous. The same trade in Taiwan generally considers that Taiwan or even other major disc manufacturers of other countries take the wait-and-see attitude toward the negotiation for the royalty on DVD-R with Philips before ITC has given the final ruling in next February regarding ALJ’s initial decision. In this regard, it is difficult to reach a concrete conclusion for the time being.

Originally, in the third quarter of this year, Philips enthusiastically contacted Taiwan disc manufacturers, hoping that the negotiation for the matter about the royalties on DVD-R can be finished. Philips, however, suspended the negotiation for the royalties on DVD-R after they had lost the case with Gigastorage in the U.S.A. It is generally expected that the negotiation for the royalties on DVD-R should reach a conclusion after the final ruling has been given by ITC next year. (2003.11)

CYJ/CCS