Chinese DVD market is a market with a bunch of disputes. Two Chinese DVD manufacturers have filed a lawsuit in American. They alleged that both Chinese DVD manufacturers had violated US laws, leading to unfair competition of DVD market. If the two Chinese DVD companies win the case, all Chinese DVD manufacturers will benefit. The high Chinese DVD patent fees have hit Chinese DVD manufacturers hard, with exports of Chinese DVD players falling sharply last year.
An association of international DVD player manufacturers steps up efforts to enforce DVD licenses and collect DVD royalties, international electronics leaders are pressing Chinese DVD player manufacturers to pay US$20 patent fees for each Chinese DVD player they produce. In 2001, international demand for the Chinese DVD was 30 million units, while the sales of Chinese DVD players in the domestic Chinese DVD market are predicted at 8 million units this year. Exports of domestic Chinese DVD players are also quickly increasing. Nowadays, many domestic Chinese DVD producers do not attach importance to the development of core Chinese DVD technology. Instead, the Chinese DVD manufacturers resort to low-cost labor to be more competitive. The Chinese DVD market has maintained its structure with little change.
Group of Chinese DVD manufacturers have filed a class action against the western consortium, 3C DVD Patent Group, who own most of the patents related to the DVD technology. The Chinese DVD manufacturers behind the case include Wuxi Multimedia and Orient Power Digital Technology. Chinese DVD manufacturers, such as Apex, had already managed to take lion's share of global DVD player markets, but refused to pay licensing fees for western patent owners that include Philips, Sony and Pioneer.