Electronics giants Sony, Philips and Pioneer have reached agreement with the Chinese Audio Industry Association for the use of technology in Chinese-made DVD players, Reuters reported. Philips, which had been entrusted by the other two with handling negotiations, said the deal was expected to be put into a formal licensing agreement within a few months.
China Daily said that the three firms expected to earn a US$5 royalty for each DVD player made using their technology. In April, a group of six other makers agreed to accept a royalty of US$4 for every DVD player made in China with their technology.