After four years, the court battle between Philips and media manufacturers, Princo and Gigastorage, seems to be over. On February 5th, the US International Trade Commission (ITC) issued a final ruling in favor of Philips, stating that the two companies infringed on six of Philips' patents. The ITC also issued a general exclusion order, banning the import of any unlicensed CD-R and CD-RW discs that infringe on the patents.
Royal Philips Electronics (AEX:PHI; NYSE:PHG) announced today that in a patent infringement case between Philips Electronics and CD-Recordable and CD-Re-writable disc manufacturers including Princo and Gigastorage, the U.S. International Trade Commission (ITC) ruled positively in granting a general exclusion order prohibiting the unlicensed importation into the United States of recordable and rewritable compact discs that infringe any of the six patents asserted by Philips. Philips welcomes this positive step in its continuous effort to stop the import of illegal CD-R/RW discs into the US, which creates unfair competition in the recordable disc market.
Philips filed this case with the ITC in 2002 seeking to prevent unlicensed CD-R and CD-RW discs from entering the United States. The ITC had found in March 2004 that six Philips patents were valid and infringed by the manufacturers, but also determined that the patents were unenforceable because of patent misuse. After Philips appealed the Court of Appeals for the Federal Circuit (CAFC) held that the ITC's legal analysis was incorrect and remanded the case to the ITC for further proceedings consistent with its opinion.
Needless to say, it's good to see this court case finally come to an end. If you'd like to read more, Phillips' entire press release can be found here.
