In recent years, the rationality of royalty rate charged by Philips Corporation to Taiwanese CD-R manufacturers is big issue. Taiwanese CD-R manufacturers lacked for patent strength, so even if they make great effort to help patentees to expand the CD-R market share, thy inevitably confront the situation that the unit price is down while the royalty rate goes up. This situation not only causes negative influence on the competitiveness of Taiwanese CD-R manufacturers, but implies that the competitive positions of emerging industrial countries are difficult to be promoted. On March 11, 2004, U.S. International Trade Commission determined that none of the asserted Philips' claims are invalid, that the accused Taiwanese products infringes the asserted claims, but all of the asserted patents are unenforceable by reason of patent misuse. Perhaps the Philips case will be another debate on TRIPs exemption topic succeeding WTO public health topic. So we could think about the issues that how to deal properly with the patent misuse behavior which interferes with competition order and consumer welfare; that how should law executor judge what behavior violated completion law; that how to enforced competition law without equitable defense rule in Taiwan. The point of this article does not lie in commenting on the case, but to lie in reviewing the reasonable judgment of patent misuse from the viewpoint of economic analysis. This article tries to figure out that advanced industrial countries' judiciary tends to determine 'misuse' issues by referring to economic thinking. On the other hand, this article points out patent system reflects the compromise of patentees and the public, so that welfare of consumers and society could be optimized. This article agrees that we must take account of respecting patentee's autonomy while concerning balancing test for patent misuse issues, but this article also adopt "dynamic efficiency" viewpoint to assess that does patentee's behavior violate market mechanism or comply with the purpose of the patent system.