Philips new licensing system for CD-R discs, Veeza, will lower royalty charges by 44.4% for those participating in the program. Taiwanese makers - who account for 53% of global CD-R disc production - will benefit significantly from Veeza, industry sources indicated.
Veeza allows the trace and recognition of licensed CD-R discs through a Veeza logo embedded in discs, a serial number on each package carton, and a Licensed Status Confirmation Document (LSCD) for each shipment, according to Philips Intellectual Property & Standards (IP&S) Taiwan Office general manager James Li. In addition, Veeza reduces the royalty charge from the current US$0.045 per CD-R disc to US$0.025, a 44.4% cut, Li pointed out.
Under the old licensing system, only manufacturers of CD-R discs are subject to royalty charges but Veeza imposes the charge on either makers or owners of brands/distributors such as Sony, TDK and Wal-Mart, Li explained. Veeza allows OEM makers to shift the burden of royalty payment to vendors, distributors and retail channels, which, in turn, may transfer the payment to consumers through pricing, Li indicated.
CMC Magnetics and Ritek, the top two makers of optical discs in Taiwan, welcomed Veeza, as each has a monthly production capacity of 100-120 million CD-R discs and sales of such discs account for 30-40% of total revenues, according to the two companies. CMC, Ritek and other leading Taiwanese makers expect Philips to extend Veeza to cover royalty charges for DVD+R/-R discs.
Story source:
digitimes.com.
