Jon (j_b) wrote,

On DVD player prices...

Chinese DVD Makers Sue Over Royalties
DVD player makers from China are suing the 3C DVD Patent Group over royalties on patents held by the consortium. The suit accuses 3C alliance for price-fixing, unlawful tying of essential and non-essential patents together, group boycott and conspiracy to monopolize. According to the Chinese companies, typically U.S. patent licensing fees for other products are between 3 and 5 percent of the item's wholesale price, compared to the 50 percent for DVD players
See the comments. Apparently the wholesale manufacturer has to pay a flat $20 per unit in patent fees, which is approaching (or at) 50% of the wholesale cost of the player, whereas in most tech patents the patent fees are a percentage of the wholesale cost.
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