CMC Magnetics has announced that they've joined Philips' Veeza licensing system for CD-R discs. By joining Veeza, CMC's royalty rate was reduced by 45%, to USD 0.045 per CD-R disc.
Royal Philips Electronics (AEX:PHI; NYSE:PHG) and CMC Magnetics Corporation (CMC), a well-known leading manufacturer of optical storage media based in Taiwan, today jointly announced that CMC has entered into Veeza, the new Philips licensing program for CD-R discs. This marks a great step forward between Philips and CMC to cooperate for a win-win result. By joining Veeza, CMC 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 & Standards, said, "We are delighted and encouraged that CMC, one of the leading manufacturers, has decided to enter the Veeza program. This again demonstrates that Philips' Veeza program and our combined efforts with the CD-R industry to create a healthier market have been recognized. Philips will closely work with CMC through better customer service and technology sharing as part of the Veeza licensing program."
With both Ritek and CMC on board, it will only be a matter of time before other CD-R manufacturers join Philips' Veeza program. If you'd like to read more, CMC's entire announcement can be found here.
