AMSTERDAM, THE NETHERLANDS– Royal Philips Electronics (AEX:PHI; NYSE:PHG) announces today that Taiwan optical disc manufacturers Prodisc and Lead Data have agreed to enter into Veeza, the new Philips’ licensing program for CD-R discs. This marks a great step forward for Philips Veeza licensing program. Philips will further cooperate with Prodisc and Lead Data for a win-win result. By joining Veeza, both Prodisc and Lead Data will enjoy a lower royalty rate of USD 0.025 per CD-R disc, which is 45% lower than the current royalty of USD 0.045 per CD-R disc.
Ben Beune, Senior Vice President of Philips Intellectual Property and Standards said, “We are delighted and encouraged by Prodisc and Lead Data’s decision to join Veeza. This again demonstrates that Philips’ Veeza program and our combined efforts with the CD-R industry to create a healthier market have been recognized. We expect more companies to join the program in the near future. We will continuously work closely with Prodisc and Lead Data and provide better customer service for this program.”
Prodisc said that they decided to join Veeza to demonstrate their respect for intellectual property. By joining Veeza, Prodisc expects to drive the industry joint efforts to build up a healthy environment for the CD-R industry and minimize the unfair competition in the market.
Veeza, which was announced by Philips in the beginning of this year, is designed to help the industry build up a level playing field for fair competition. So far, two Argentina manufacturers, three Hong Kong manufacturers, Ritek, CMC and newly joined Prodisc, Lead Data from Taiwan as well as their respective subsidiaries have entered into Veeza program to promote a healthier optical disc industry. Based on Philips’ code of conduct that is strictly adhered to by all its business operations around the world, all these licensed companies will be secured by the confidentiality clause under their Veeza license agreement with Philips.
Veeza makes it easier to trace and recognize licensed discs. Contrary to the traditional licensing model, each individual shipment will be licensed separately. The Veeza system includes three marks that provide simple proof that a shipment of CD-R discs is licensed under Philips’ patents: a logo embedded in the disc, a serial number on the package carton, and a mandatory authenticity-check document that goes with all shipments called Licensed Status Confirmation Document (LSCD). This supports Philips in its efforts to distinguish licensed from unlicensed goods and thus provide better protection to those manufacturers who wish to play by the rules and promote a healthy CD-R industry.
About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a global leader in healthcare, lifestyle and technology, delivering products, services and solutions through the brand promise of “ sense and simplicity ” . Headquartered in the Netherlands, Philips employs approximately 126,000 employees in more than 60 countries worldwide. With sales of EUR 30.4 billion in 2005, the company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, personal care and home appliances, as well as consumer electronics. News from Philips is located at www.philips.com/newscenter.
For further information please contact:
Philips Intellectual Property & Standards
Global:
Femmy de Rijk
Tel.: +31 40 27 43483
E-mail: Femmy.de.Rijk@philips.com
Asia Pacific:
Ben Shi
Tel.: + 86 10-65172288 ext. 3131
E-mail: ben.shi@philips.com
Taiwan:
Julia Hung
Tel: +886 2 3789 2223
E-mail: julia.hung@philips.com
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