Philips revokes CDR licenses

[kush]

From digitimes (http://www.digitimes.com/systems/a20060925A1002.html) -

Philips revoked CDR licenses for the top 2 CDR makers in Taiwan - CMC and Ritek; also included Prodisc and Lead Data. DT says it's their way for getting the companies affected to switch over to their new Veeza licensing scheme (http://www.licensing.philips.com/veeza/) - which effects both stamped and burnable discs alike. The only comapnies currently licensed to make/sell CDR products (in Taiwan) and Daxon and E-Top MediaTek [who? - heard of Daxon [sort of] before but ET/MT?].

Someone correct me if I'm wrong, but Ritek and CMC likely make the majority of CDR discs manufacted *anywhere*. The article makes no mention of Japanese CDR makes - either they all have already licensed the new Veeza scheme, or revokation (and/or negotations pending) for them. Are there even any Japanese companies in the CDR business anymore? This action is thought to possibly affect the export of CD media to both US and Eurpoe, and the article also stated that they will soon meet to discuss how to proceed (CMC/Ritek? article a bit vague)...With that said, WTF has taken them until after their licenses get revoked to even discuss it (publically at least)? The Veeza scheme apparently was announced in January, published the PDF agreements for various comapnies involved in May, and announced their supplier for the required serials/labeling last month.

I'm not sure as to how big the CDR market is anymore, as manufacturers are seemingly starting to switch away from even DVD production these days (at least in the burnable market; pressed is likely stil huge on both sides)..And alot of CDR based software, PC and console game makers are switching to DVD formats for their more recent releases. However, there's still a BIG market for both pressed CD products and burnable CDRs. You'll likely find that there's still lots of burnable CDR media available, with CD media available in your local news rags ads each week, right alongside the DVD media. Also of note, this action DOES NOT affect the DVD (pressed or otherwise) market for any of the companies involved, only CD media.

/me has enough for now ..Forgive any jumpiness/rambling/ incoherence - I haven't had enough of the requisite morning coffee intake yet. ps - Checked both the News and Media forums, nothing came up, but forgive me if this is a dupe (mods feel free to delete if it is)

[adam]

Well there's a number of expenses incurred by the disc manufacturer when they switch to Veeza. They have to retool their plant to imbed the new logo into the CDR. They also have to pay for the new serial numbers and update their computer software. There seem to be tons of little compliancy changes that have to be implemented too. They get royalty breaks for switching to Veeza, which Philips states MORE than make up for the costs, but for a major operation you have to figure this is a pretty disruptive transition and one that requires a large initial investment. So its probably understandable why these companies didn't switch right away and why they held on to their existing licenses for as long as they could.

I'm sure these companies were anticipating the switch and were making some preparations. It's not uncommon for licensing negotiations to begin only after the current license expires and gets revoked. The manufacturers are such major players that its not like they are going to be left out in the cold.

[RabidDog]

SO you're saying they wont allow these CDr to be landed in the states without a "veeza" .. Oh god.. the inhumanity of it all..