Phillips, Infringement

Philips conducted legal proceedings for several years for infringement of its patent on CD-R against three parties: two Taiwanese and one Swiss company. The infringing goods were seized in Rotterdam. Philips demanded maintenance of its patents in the Netherlands and also in every other country in which the patent was in force. Also, Philips demanded destruction of the stocks and brought a claim based on the Anti-Piracy Regulation EC 241/1999 forbidding the infringers from importing the infringing products into any Member state, re-export them or place them under a suspensive procedure. The Court of Appeal gave Philips only a prohibition on infringement in the Netherlands, and Philips is appealing to the Supreme Court of the Netherlands against this judgment. The Court of Appeal had rejected the Piracy claims on the grounds that re-export of transit goods does not constitute infringement. It also rejected the request for destruction as it was not sufficiently in Philips’ interests, as the Taiwanese companies were prepared to pay a compensation for the damages suffered by Philips.