PHILIP again charged CD-R manufacturers with infringement, three Taiwanese companies included

PHILIP USA filed a complaint to the US International Trade Commission (ITC) against nineteen CD-R manufacturers worldwide, accusing them of patent right infringement and requesting that the products produced by those manufacturers should be seized at the time they arrive at US customs.  Three domestic companies, Gigastorage Corporation, Digital Storage Technology and Gui Yang (桂陽), are among the nineteen manufacturers named. 

Companies accused by PHILP pointed out that the amount of royalty demanded by PHILIP is almost equivalent to one-third of their current production costs.  To compromise with PHILIP will cause them to loss their price competitiveness.  Therefore, they will seek countermeasure to circumvent PHILIP's demand, such as selling their products into the markets in Central and South America via countries like Mexico, instead of exporting to the US.   

Source: Economic Daily News 06/27/2002