As we've reported in the past, Taiwanese disc manufacturers have not been happy with Philips' Veeza licensing system. According to DigiTimes, Philips is now requiring manufacturers to adopt Veeza and has set a May 30 deadline for compliance.
Taiwanese makers of CD-R discs are generally reluctant to accept Veeza, the sources indicated. The new royalty rate of US$0.025 per disc, though 44.4% cheaper that the original US$0.045, still accounts for 20-30% of OEM prices of CD-R discs, much higher than the 3-5% desired by Taiwanese makers, the sources pointed out. In addition, Taiwanese makers are dissatisfied with Philips' incapability of imposing Veeza on makers of CD-R discs in China and India, which subjects them to unfair competition.
It's not known what Philips will do if manufacturers fail to sign onto the Veeza program. If you'd like to read more, the entire article can be found here.