Posted by Ian on May 7th, 2008 at 10:45 AM CST

Prodisc and Philips are at it again. According to DigiTimes, Prodisc has failed to fulfill the licensing for CD-R disc patents owned by Philips. As a result, Philips has asked a local court in Taipei for the provisional seizure of bank deposits worth up to $3.28 million.

Prodisc Technology, a second-tier Taiwan-based maker of blank optical discs, on May 6 announced that a local court in the Taipei area has approved a request by Royal Philips Electronics for the provisional seizure of bank deposits worth up to NT$100 million (US$3.28 million) in total due to its failure to fulfill licensing for CD-R disc patents owned by Philips, according to Prodisc's filing with the Taiwan Stock Exchange (TSE). Prodisc emphasized that its business operation has not been substantially affected by the event and it will protect its rights by launching an interlocutory appeal.

The Taiwan office of Philips Intellectual Property & Standards filed the request with the local court in April 2008 in order to protect Philips' CD-R patents and secure fairness to Taiwan-based licensees in terms of market competition, the office explained.

This legal action is expected to put considerable pressure on CMC Magenetics and Ritek. Both companies are currently negotiating with Philips to renew their own licensing contracts. If you'd like to read more, head on over to DigiTimes.