CMC Magnetics Corp (
According to the new contract, CMC will pay Philips a royalty of US$0.045 per CD-R. Previously, the fee had been set at US$0.083 per unit.
Currently, CD-Rs sell for about US$0.21 per unit.
According to CMC, the company hopes to become the world's largest CD-R maker in the near future.
The licensing agreement from Philips is very important to the company.
However, Taiwan's other CD-R makers yesterday complained about CMC's action, saying that the company might harm other CD-R makers rights while others are still negotiating with the Dutch electronics giant.
Just one day ago, domestic CD-R manufacturers filed an appeal with the Cabinet-level Fair Trade Commission, charging that Philips has illegally monopolized the market and demanded the exorbitant fees which have sharply increased their production costs and weakened their products' market competitiveness.
In related news, the EU informed Taiwan that it has begun investigations on Taiwan's CD-R suppliers for suspected dumping, Taiwan's Bureau of Foreign Trade (
According to the statement, an EU committee will randomly select Taiwan suppliers and require them to complete surveys for the investigation by April 14.
Bureau of Foreign Trade said that CD-R is Taiwan's sixteenth largest export product, accounting for US$1.0 billion, or 0.7 percent, of Taiwan's total exports in 2000.
The EU is the largest export destination, for CD-Rs taking in US$460 million, or 42.28 percent, of total CD-R exports last year.
The EU is followed by the US and Hong Kong, which imports 39.2 percent and 3.1 percent of Taiwan's CD-Rs, the statement said.
The Bureau of Foreign Trade said it will inform related companies of the EU committee's intention and will also discuss necessary countermeasures with companies and industrial associations.
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