Philips introduces Veeza to curb illegal use of CD-R

Dutch company Philips Electronics is to adopt within six months a new licensing system, called Veeza, to curb the illegal use of its patented CD-R technology.

Veeza was developed so that throughout the chain from customs, traders, retailers to consumers you can easily differentiate a licensed disc from an unlicensed one. This is possible because Veeza has three marks:

• a logo and site registration number on each disc;
• a fraud-resistant label with the logo and serial number on each packing carton;
• and documentation for each shipment.

"Philips co-invented the CD-R disc system and has a portfolio of patents essential for the manufacture and sale of CD-R discs. Under Veeza, Philips has cut royalties from 4.5 US cents to 2.5 US cents per piece, and it will charge patent royalties based on the number of shipments.
Under the previous system, CD-R manufacturers received a licence from Philips for total production that was valid until the patent expired, Peters explained."

"Currently about 95 per cent of the CD-R discs in the world are produced in China, including Taiwan. An estimated 50 per cent of those made in China are licensed, according to James Liu, senior legal counsel of Philips IP and Standard."

Read Zhu Boru's article for the ChinaDaily here.