Imation has announced that they've filed a Declaratory Judgment Action, asking the court to reaffirm a cross-licensing agreement between two companies. According to their press release, Philips has tried to interfere with Imation's suppliers, despite the existing agreement.
Imation Corp (NYSE: IMN) today announced that it has filed a Declaratory Judgment Action in the Federal District Court in St. Paul, Minn., requesting that the court resolve an ongoing dispute with Philips Electronics N.V., U.S. Philips Corporation, and North American Philips Corporation (collectively "Philips"). The action requests that the court reaffirm Imation's cross-licensing rights related to various optical products, including recordable and rewritable CD and DVD discs, based on a long-standing agreement between Imation and Philips.
Imation's cross-licensing agreement with Philips allows Imation to make, have made and sell various optical media products including CD and DVD discs. Based on Imation's cross-licensing rights under the existing agreement, Imation's action asks the court to stop Philips' recent attempts to interfere with Imation's ongoing business relationships with its customers and suppliers.
This is most likely due to Philips' Veeza licensing scheme. As we've reported in the past, Philips is trying to bar imports of non-Veeza discs in some of the world's major markets. More information can be found on Imation's website.
