DVD6C announces new licensing program

JAPAN: The DVD6C Licensing Group (DVD6C) consisting of nine leading developers of DVD technology and formats — Hitachi Ltd., Mitsubishi Electric Corp., Panasonic Corp., Samsung Electronics Co. Ltd, Sanyo Electric Co. Ltd, Sharp Corp., Toshiba Corp., Victor Company of Japan Ltd. (JVC) and Warner Bros. Home Entertainment Inc. — has revised its worldwide patent licensing program beginning on and after January 1, 2010, including offering a new license agreement (the New DVD6C License Agreement), which offers reduced royalty rates on certain products and additional licensing options.

Key changes to the new licensing program include the following:

* Reduced royalty rates for DVD Recorders (i.e., the DVD-RAM Drive, DVD-RW Drive, DVD-R Drive and DVD Video Recorder licensed DVD Product categories) from (i) the greater of 4 percent of the net selling price or US$6.00 per recorder to (ii) a flat rate of $4 per recorder on or after the effective date of the New DVD6C License Agreement; provided, however, that such reduced royalty rates will apply retroactively as of January 1, 2010 for licensees who sign the New DVD6C License Agreement by October 31, 2010.

* Reduced royalty rates for DVD Players (i.e., the DVD-Video Player, DVD-ROM Drive and DVD-Audio Player licensed DVD Product categories) from (i) the greater of 4 percent of the net selling price of the player (up to a maximum of $8 per player) or $4 per player ($3 per player for licensees licensed on or after January 1, 2005) to (ii) a flat rate of $2 per player effective on or after the later of (i) the effective date of the New DVD6C License Agreement and (ii) January 1, 2011.

* Shortened initial term of the license, which now runs to the end of 2012.

* Clarification that Blu-ray Disc products are not covered by the new license, irrespective of whether they include DVD functionality.

Interested parties will remain free to negotiate individual license agreements with DVD6C's member companies, rather than entering into a single portfolio license or license for a category of products. The member companies have committed to provide such licenses under fair, reasonable and non-discriminatory terms and conditions.

For the convenience of current and prospective licensees, the royalty rates to be offered under the New DVD6C License Agreement are shown below: