Philips threatened liability for patent infringement for any comp...
Philips threatened liability for patent infringement for any company selling, buying or trading optical discs from unlicensed replicators. Company administers licensing and royalty collection for optical disc patents it and partners own. In Dec. 10 letter, Philips said some…
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replicators remained unlicensed and were infringing on patents, and in some cases were falsifying records and underpaying royalty. It said those replicators were candidates for litigation and product seizure, but it had legal right to collect royalties and damages from any company that had bought or traded infringing products -- even if that party wasn’t aware of supplier’s licensing and royalty status. Letter also said those knowingly purchasing unlicensed discs could be found guilty of willful infringement, with courts assessing treble damages. That would raise royalty to 9? from 3? on CDs, and to 15.9? from 5.3? on DVDs. Letter asked recipients to check Philips Web site for list of licensed replicators (www.licensing.philips.com) or to contact Philips at locations listed on Web site, and to demand suppliers document status of their licensing and royalty payments. On June 25, Philips filed patent infringement charges against 19 replicators and trading companies in U.S.