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Philips gets court order to freeze Prodisc plants

TAIPEI, Taiwan -- Royal Philips Electronics NV, Europe’s largest consumer electronics maker, won an injunction preventing Taiwan’s Prodisc Technology Inc. from selling or renting out two plants amid a dispute over royalty fees for computer discs.

Prodisc can continue its daily manufacturing activities at the plants, Prodisc Vice President Jay Chang said in a briefing in Taipei Tuesday.

The companies have failed to agree on the number of discs Prodisc sells, Chang said. Philips collects a 35 percent royalty fee on each disc the Taiwanese company sells, he said.

Taipei-based Prodisc has eight factories in Taiwan and China. Besides making computer discs, it also makes contact lenses and parts used in liquid-crystal displays, according to Chang.

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