According to DigiTimes, CMC and Ritek recently signed new licensing contracts with Philips that are effective for the next 10 years. In return, Philips reduced the royalty rate for CD-RW, DVD+R, DVD-R, DVD+RW and DVD-RW media by more than 70% from US$0.035-0.036 per disc to US$0.01.
Royal Philips Electronics has reduced royalty charges for CD-RW, DVD+R, DVD-R, DVD+RW and DVD-RW optical disc formats by 71.4-72.2% from US$0.035-0.036 per disc originally to US$0.01 for CMC Magnetics and Ritek, Taiwan's two largest optical disc makers. The new licensing contracts are effective for 10 years from December 31, 2009 to December 30, 2019, according to industry sources in Taiwan. Both CMC and Ritek confirmed the new licensing but did not confirm the rates.
