Organization / Terms / 3c parts manufacturers

There are a lot of rumors around in recent days about the issue of DVD patents. The patent holders especially 3c parts manufacturers are claiming that Chinese DVD player manufacturers are unjustifiably taking over the majority of market share by avoid paying patent fees. It seems imperative for Chinese DVD manufacturer to clarify some facts and clearly state its stand.

Since1999, China’s manufacturers are taking a positive attitude to negotiate royalty issues with 3c parts manufacturers, and Chinese manufacturers have clearly expressed their desires to pay the royalties as long as it is a fair play. Since the majority of the patent rights are integrated in the loader and encoding/decoding chip-sets, Chinese sides suggested a most easy and practical way to collect the royalties, that is, to add the royalties on the key parts because the key parts suppliers are no more than ten, on the other hand, the assemblers are more than hundreds. If some assemblers pay the royalties and some not, it will make an unfair competition in the market.

Should pay them royalties for the patents used in the machine, few people noted the fact that 3c parts manufacturers are just assemblers in the field, all the key parts such as loader, decoder chipset are supplied by 3C and 6C themselves or their related and/or associated companies. However, the benefit groups refused the suggestion and persisted on charging the patent fee to the DVD player assemblers rather than the loader and chip-set suppliers.

There is one more fact that worth notice, that is, some members of the benefit groups are leading 3c parts manufacturers themselves, which may well explain why the benefit groups would prefer the tremendous trouble to deal with hundreds of DVD assembly manufacturers to settlement the royalties by easier and practical way to collect the royalties from the a fewer key parts and 3c parts manufacturers.

 
 

 
 
 

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