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Philips vs Unlicensed DVD Players
Kallahar writes "NewScientist is running an article about how Phillips, Sony, and Pioneer have "asked customs officials throughout Europe to seize players made by unlicensed factories."
Philips, Sony and Pioneer have pooled many hundreds of patents covering all aspects of the DVD system. Philips administers the pool, grants licences and collects royalties, which are then shared three ways." This comes
on the heals of philips going after
copy protected CDs. The draw for these DVD players for consumers
is probably both price, and the fact that they are often free of
those pesky region encodings (especially nice for anime junkies)
Supply of low-cost DVDs in Europe set to dry up
14:45 12 February 02
Barry Fox
European supermarkets and high street electrical stores could soon see their supply of low-cost DVD players and discs dry up. Philips controls key patents on DVD technology and has grown tired of asking the manufacturers to pay royalties. The Dutch company has now asked customs officials throughout Europe to seize players made by unlicensed factories.
Philips, Sony and Pioneer have pooled many hundreds of patents covering all aspects of the DVD system. Philips administers the pool, grants licences and collects royalties, which are then shared three ways.
Most of the low-cost players come from factories in China. International trade newsletter TV Digest estimates China produces around 10 million DVD decks a year, mainly for export. European and North American importers then slap on Western brand name labels and sell them for under $100.
Legal warning
The DVD Forum, which sets the technical standards for DVD, lists several dozen factories in China. But only four of the factories have so far taken licences.
As a first step towards policing the patent pool worldwide, Philips has asked European Union Customs Authorities to impound unlicensed DVD-Video/ROM players and DVD-Video/ROM discs under the EU Council Regulation that covers goods that infringe patents.
Although there has been no formal announcement, Philips's legal website warns European importers that if they do not want their stocks stuck in Customs they should ask the factory to show them proof of a licence.
Philips says that even if goods get through customs, the company will act against wholesale and retail traders.
"The trade in unlicensed products may expose your company to liability for patent infringement" warn Philips' lawyers.
It's just you, but you probably didn't read the article anyway.
Are you familiar with the Regulation? Did you bother to look it up?
Here it is: Bulletin EU 1/2-1999
No, it's not blatantly illegal. In fact, they're required to do it.
For example, at a company I worked for, we held a patent on a particular kind of machine. This patent meant that no one could bring a similar kind of machine in to North America. We had a fellow that would "watch" orders to and from one of our overseas competitors. He would then notify the port authorities and when the device arrived, it would be impounded.
The company held the patent and you cannot do an end-run around it by importing a device from a country where the patent is not held.
That's why you go to ebay and find an Apex 600a while you still can. Very excellent machine, will play any region disk you throw at it, dolby digital out, and you can disable macrovision. The newer unlicensed dvd players are of pretty shoddy quality.
I just saw an article on Yahoo that stated that the patent royalties amount to $28 per player. That's over a third of the price for some units, and that's the retail price, not the wholesale price. It's no wonder that companies aren't paying up.
It's just like with other intellectual property--when you price it too high, people will avoid paying.
You forget about the increasing number of DVDs released in Japan (region 2) with English subtitles already included. Example: the last 5 FLCL DVDs.
I read the internet for the articles.
Chuckle, cough, roll eyes.
It is my impression that the demand for region free DVD players is relatively limited in the states, certainly compared to Europe. Region 1 (North America) has the largest DVD selection, and thus the need (for the general public) to import DVDs is limited. Furthermore, most American TV sets would have difficulties showing PAL (the European TV standard).
Europe is region 1 (together with Japan, and as others have noted, an increasing number of Japanese DVD releases feature English subtitles), and while the DVD market is rapidly growing, we have still a long way to go, before matching the selection found in region 1, especially wrt. special genres, such as anime.
Luckily, region free DVD players are readily available in stores. These are however usually not Apex etc. players, but modified brand players. I personally own a region free Pioneer DVD player, which handles all regions beautifully. A further advantage is that most European TV sets are able to handle NTSC. There is nothing shady about these modifications - most stores will perform them, and many places do not even sell non modified players (in Denmark, that is).
From my perspective, the only attractive feature of the Apex etc. players is that they often handles (XS)VCDs better than ordinary DVD players. As (XS)VCDs never were an item here in Europe, this is not really much of a problem, unless you burn your own.
--- In omnibus requiem quaesivi, et nusquam inveni nisi in angulo cum libro
Most of the low-cost players come from factories in China. International trade newsletter TV Digest estimates China produces around 10 million DVD decks a year, mainly for export. European and North American importers then slap on Western brand name labels and sell them for under $100. Sounds like counterfeiting to me.
-- If god wanted me to have a sig, he'd have given me a sense of humor.
Please knock it off. I work in the electronics parts industry (Controller of Corp.) and know what I'm talking about. This has been a major problem for years now.
EBN Online has many, many articles on this subject.
Here is a sample. Use their search engine, and you'll find others.
Try The ERAI website for checking the effects this problem has on our industry. It's costing us millions, if not billions.
Before you open up your mouth and spew your "humanitarian" garbage, check facts first.
I'm not afraid of falling, it's the sudden stop at the end that frightens me.