Phillips has come out and said that they (as the patent holders on the Compact Disc format) do not recognize the copy-protected CDs that some of the major record labels are putting out as legitiment CDs because they do not adhere to the Compact Disc standard. They have it within their power to dictate that these bastard children of CDs may not carry the Compact Disc logo. They also plan to put out hardware that is capable of circumventing the copy protection.
Phillips is my new favourite multi-national conglomerate. Read the original article (in German) or the English translation thanks to Google's language tools.