Last week, we reported that Philips had asked a court in Taipei for the provisional seizure of Prodisc's bank deposits. In
response, Prodisc placed ads in local newspapers stating that Philips' royalty rates are unreasonably high and that the entire system is
unfair. Apparently, this didn't go over very well with Philips as they have now asked the courts to extend the provisional seizure and
place legal attachment on one of Prodisc's factories.
Royal Philips Electronics on May 12 requested a local court in the
Taipei area to place legal attachment on a Prodisc Technology factory located near Taipei to protect its claims on unpaid royalties, an
extension of the provisional seizure of Prodisc's bank deposits that was earlier requested by Philips and approved by the court,
according to industry sources in Taiwan.
Philips' request for attachment on Prodisc's factory property was made mainly because
Prodisc on May 9 placed an announcement in local Chinese language-language newspapers stating that Philips' royalty charge rates are
unreasonably high and that the entire Philips royalty system is unfair due to Philips' being unable to impose charges on makers of blank
CD-R discs in China and India, the sources pointed.
The article also mentions that Prodisc has proposed a solution to
Philips in the hopes that they can settle the dispute and lift the provisional seizure. If you'd like to read more, head on over to DigiTimes.
