According to DigiTimes, Philips is currently working on a new
licensing scheme for DVD drives and players. Once it is completed, this DVD patent LSCD (Licensed Status Confirmation Document) system
will be imposed on electronics manufacturers. As with Philips' Veeza licensing scheme, the LSCD system will prevent unlicensed products
from entering the US, European and Japanese markets.
Royal Philips Electronics plans to extend its patent licensing
scheme for blank optical discs - such as Veeza for CD-R discs -to DVD drives as well as any consumer electronic DVD device, such as
players and recorders, through imposing its DVD patent LSCD (Licensed Status Confirmation Document) system on such makers, with the
system being drawn up and possibly coming into force soon, according to the Taiwan Office of Philips Intellectual Property &
Standards.
Philips' LSCD system will not substantially influence Lite-On IT and Quanta Storage, the largest Taiwan-based makers
of half-height DVD burners and slim-type DVD burners, respectively, according to industry sources in Taiwan. This is because Lite-On IT
and Philips have set up the joint venture Philips Lite-On Digital Solutions (PLDS) in Taiwan and Quanta Storage has a shelter from the
patent claim through its cross-licensing with Sony which, along with Philips, is among the members of the DVD 3C Patent Group, the
sources pointed out.
The LSCD system is expected to have a negative impact on second-tier manufacturers in China and
Taiwan, as many of them have not obtained licensing from the 3C DVD or DVD 6C patent groups. If you'd like to read more, head on over to
DigiTimes.
