DVD6C Announces Royalty Reduction for DVD Decoder and DVD Encoder

04/09/2008 - 11:20

The DVD6C Licensing Group (DVD6C) consisting of nine leading developers of DVD technology and formats "” Hitachi, Ltd., Matsushita Electric Industrial Co., Ltd. (Panasonic), Mitsubishi Electric Corporation, Samsung Electronics Co., Ltd., Sanyo Electric Co., Ltd., Sharp Corporation, Toshiba Corporation, Victor Company of Japan, Ltd. (JVC) and Warner Bros. Home Entertainment Inc. "” today announced that it has revised its worldwide patent licensing program beginning on and after July 1, 2008, including offering a new license agreement (the "New DVD6C License"), which offers the following reduced royalty rates on DVD Decoder and DVD Encoder, respectively.

The DVD6C´s patent royalty for DVD Decoder is the greater of 4% of the Net Selling Price of the DVD Decoder or US$1.00 per decoder sold on or before the effective date of the New DVD6C License, and the new royalty rate will be US$0.50 per decoder on or after the effective date of the New DVD6C License.

Similarly, the DVD6C´s patent royalty for DVD Encoder is the greater of 4% of the Net Selling Price of the DVD Encoder or US$1.50 per encoder sold on or before the effective date of the New DVD6C License, and the new royalty rate will be US$0.75 per encoder on or after the effective date of the New DVD6C License.

Interested parties will remain free to negotiate individual license agreements with DVD6C´s member companies, rather than taking out 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 are shown below:

Category Royalty DVD Decoder

(Newly revised)

The greater of

(i) 4% of the net selling price or

(ii) US$1.00 per decoder

US$0.50 per decoder on or after the effective date of the New DVD6C License

DVD Encoder

(Newly revised)

The greater of

(i) 4% of the net selling price or

(ii) US$1.50 per encoder

US$0.75 per encoder on or after the effective date of the New DVD6C License

DVD–Video Player

The greater of
(i) 4% of the net selling price or

(ii) US$4.00 per player or,
US$3.00 per player on or after the effective date of the New DVD6C License

US$8.00 at maximum on or after January 1, 2003

DVD–Audio Player

The greater of
(i) 4% of the net selling price or

(ii) US$4.00 per player or,
US$3.00 per player on or after the effective date of the New DVD6C License

US$8.00 at maximum on or after January 1, 2003

DVD–ROM Drive

The greater of
(i) 4% of the net selling price or

(ii) US$4.00 per drive or,
US$3.00 per drive on or after the effective date of the New DVD6C License

US$8.00 at maximum on or after January 1, 2003

DVD–ROM Disc

US$0.075 per disc;

US$0.065 per disc on or after January 1, 2002;

US$0.05 per disc on or after January 1, 2004;

US$0.040 per disc on or after the effective date of the New DVD6C License

DVD–Video Disc

US$0.075 per disc;

US$0.065 per disc on or after January 1, 2002;

US$0.05 per disc on or after January 1, 2004;

US$0.040 per disc on or after the effective date of the New DVD6C License

DVD–Audio Disc

US$0.075 per disc;

US$0.05 per disc on or after January 1, 2004;

US$0.040 per disc on or after the effective date of the New DVD6C License

DVD Video Recorder The greater of

(i) 4% of the net selling price or

(ii) US$6.00 per recorder

DVD (Recordable Disc) Drive The greater of

(i) 4% of the net selling price or

(ii) US$6.00 per drive

DVD–R Disc The greater of

(i) 4% of the net selling price or

(ii) US$0.075 per disc;
US$0.045 per disc on or after January 1, 2006

DVD–RW Disc

The greater of

(i) 4% of the net selling price or

(ii) US$0.075 per disc or,
US$0.065 per disc on or after the effective date of the New DVD6C License

DVD–RAM Disc

The greater of

(i) 4% of the net selling price or

(ii) US$0.075 per disc or,
US$0.065 per disc on or after the effective date of the New DVD6C License

DVD Recordable Disc Case

The greater of

(i) 4% of the net selling price or

(ii) 0.5 US cents per case

+R Disc The greater of

(i) 4% of the net selling price or

(ii) US$0.075 per disc, or

US$0.045 per disc on or after January 1, 2006

+RW Disc

The greater of

(i) 4% of the net selling price or

(ii) US$0.075 per disc or,

US$0.065 per disc on or after the effective date of the New DVD6C License

For further information regarding the DVD6C licensing program, please visit the 6C web site (www.dvd6cla.com) or contact one of the following regional agents:

Japan:

Toshihiro Shinohara Vice–President & General Manager Licensing Toshiba DVD License Services, Inc. 5th Floor, Sumitomo–Hamamatsucho Bldg. 18–16, Hamamatsucho 1–chome, Minato–ku Tokyo 105–0013, Japan Phone: +81–3–5777–3286 Fax: +81–3–5401–2503

E–mail: 6C.JP@toshiba–tdls.co.jp

Europe and Africa:

Shunsuke Nonami Vice–President & General Manager Toshiba of Europe Limited Santander House 6th Floor, 100 Ludgate Hill, London, EC4M 7RE United Kingdom Phone: +44(0)20 7332 9862 Fax: +44(0)20 7332 9889

E–mail: 6C.EU@toshiba–tdls.co.jp

Asia (excluding Japan), Oceania and the Middle East:

Shigeru Komatsu Department Manager DVD Licensing Center Hitachi Ltd. 292 Yoshida–cho, Totsuka–ku, Yokohama, 244–0817, Japan Phone: +81–45–415–2135 Fax: +81–45–866–5824

E–Mail: dli–inquiry@itg.hitachi.co.jp

The Americas:

Tatsuya Ii Matsushita Electric Industrial Co., Ltd. Exclusive Regional Agent for DVD6C Licensing Agency c/o Weil, Gotshal & Manges LLP 201 Redwood Shores Parkway Redwood Shores, California 94065, USA Phone: 650–802–3146 Fax: 650–802–3100

E–Mail: dvd6c@gg.jp.panasonic.com