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Image header Agence Europe
Europe Daily Bulletin No. 8522
GENERAL NEWS / (eu) eu/competition

Green light for Commission clears Philips/Sony CD Licensing programme

Brussels, 08/08/2003 (Agence Europe) - The European Commission has cleared Philips/Sony CD Disc Licensing Programme and the standard joint licence agreement 2003 following some concessions. This clearance marks the end of the Commission's investigation into the Philips/Sony CD disc Licensing Programme of pre-recorded CD discs (CD Audio, CD ROM, CD TEXT and CD Extra discs). It began the investigation three years ago following complaints from CF manufacturers who thought the licence and royalties system too opaque, pointed out Competition spokesperson, Tilman Lueder. A communiqué announced that following a detailed examination taking into account the improvements to the structure, transparency and management of the programme, the Commission had authorised the bilateral agreements establishing the common CD licence programme. The Commission requested changes to the standard licence agreement of 2003. Philips and Sony have the right to license their respective patents separately and to give non-assertion undertakings with regard to jointly owned patents. An independent patent expert is now expected to conclude the analysis for CE-extras and CD texts. Royalty payment obligations have been clarified to reflect the territorial scope and duration of the licensed patents. Conditions for access to the reduced compliance royalty rate have been clarified and made more attractive. Philips will provide information on its internet site (http://www.licensing.philips.com ) inform all EEA licensees of all the above changes. Philips will grant a one-time credit of 10.000 USD on royalties due.