Philips lawsuit against Taiwanese media manufacturer DST was sent back for retrial. Philips sued DST for violating licensing agreements for CD-R discs. Philips will review the decision and then make an appeal, according to DigiTimes.

DST, which produces CD-R, CD-RW and DVD-R discs, signed a license agreement with Philips in July 2001 to use CD-R patents at a royalty charge of US$0.06 per disc. Due to intense competition, DST defaulted on the royalty payments resulting in Philips taking legal action against the Taiwanese maker. Philips won the lawsuit at a district court and Taiwan’s High Court but lost in DST’s appeal to the Supreme Court.

Taiwan’s Supreme Court made its decision based on the stance taken by the Fair Trade Commission under the Executive Yuan which maintains that CD-R patents are owned by Philips, Sony, and Japan-based Taiyo Yuden and that Philips’ claims to royalty payments plus a large interest on unpaid royalties is unjustified.

CMC and Ritek, the top makers of optical discs in Taiwan, are watching the case carefully for reference in negotiating royalty payments with Philips, the two companies indicated.

Source: DigiTimes