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EU says Philips' changes to CD-R licensing could lower
Published in Saudi Press Agency on 09 - 02 - 2006


European consumers are likely to
see lower prices for recordable CDs after Philips changed
its technology licensing program for manufacturers
following an EU antitrust probe, AP quoted the European Commission as saying Thursday.
EU regulators closed their investigation after Philips cut
the payment it charges companies who license the right to
make CD-R discs from 4.5 U.S. cents to 2.5 U.S. cents per
disc.
Philips also agreed to give licensees more information on
which patents were essential and which weren't, to deal
with technical problems and to allow other high-speed discs
to qualify as CD-R.
"The new licensing conditions offered by Philips are
likely to bring about lower prices and more transparency
for millions of consumers of recordable CDs," EU
regulators said.
The EU has been investigating the company since 2003 after
a complaint from European CD-R manufacturers FIPCOM, the
Federation of Interested Parties in fair Competition in the
Optical Media sector, who alleged that the way Philips
licensed their technology broke competition rules.
The Commission warned that it would closely monitor how
companies licensed new technology _ particularly those that
support or set an industry standard _ to make sure they do
not violate antitrust law.
Telecom equipment makers filed an EU antitrust complaint
against Qualcomm Inc. last year, claiming the
California-based wireless technology company was refusing
to license essential patents on fair terms and was charging
excessive royalties.


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