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MPEG LA Announces Effort to Facilitate HD DVD Patent License

MPEG LA, LLC, world leader in one-stop technology standards patent
licensing, today issued a call for patents and patent applications
that are essential to the HD DVD Standard in order to facilitate
creation of a joint HD DVD patent license.

"Continuing in its mission to respond to the market's need for
fair, reasonable, and nondiscriminatory access to patents essential to
defined technologies, MPEG LA is pleased to accept an invitation to
facilitate this effort so that users may have the benefit of a
convenient marketplace licensing alternative to assist them with
implementation of their technology choices," said MPEG LA Chief
Executive Officer Larry Horn.

The call begins a process of evaluating and determining patents
that are essential to the standard in order to include them in a joint
patent portfolio license providing users with fair, reasonable, and
nondiscriminatory access to the technology as an alternative to
negotiating separate licenses. A summary of the MPEG LA facilitation
effort with reference to the HD DVD Standard is attached.

HD DVD Standard

HD DVD refers to a next generation optical disc format developed
by the DVD Forum, an international association of hardware
manufacturers, software firms, content providers and other users of
Digital Versatile Discs. The format was developed to enable recording,
re-writing and playback of high definition (HD) video and audio, as
well as storing large amounts of data. The new format uses a
blue-violet laser with a short wave length (405 nm) allowing a large
amount of data to be packed tightly and stored on a standard size
disc. The HD DVD standard refers generally to (a) a rewritable optical
disc, a recordable optical disc and a read-only optical disc; (b) the
method of playing such discs; and (c) recording methods. For more
information, see http://www.dvdfllc.co.jp/hd_dvd/hd_what.html.

MPEG LA, LLC

MPEG LA is the world leader in alternative technology licenses,
enabling users to acquire worldwide patent rights necessary for a
technology standard or platform from multiple patent holders in a
single transaction as an alternative to negotiating separate licenses.
Wherever an independently administered one-stop patent license would
provide a convenient marketplace alternative to assist users with
implementation of their technology choices, the licensing model
pioneered and employed by MPEG LA may provide a solution. By balancing
patent users' interest in reasonable access with patent owners'
interest in reasonable return, MPEG LA creates the opportunity for
adoption of new technologies and fuels innovation. MPEG LA's initial
licensing program for MPEG-2 digital video compression helped produce
the most widely employed standard in consumer electronics history, and
the MPEG LA(R) Licensing Model has become the template for addressing
other technologies. Today MPEG LA manages licensing programs
consisting of essential patents in 57 countries. MPEG LA is an
independent licensing administrator; it is not related to any
standards agency and is not an affiliate of any patent holder. For
more information, please refer to http://www.mpegla.com.

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ATTACHMENT

Following is a summary of MPEG LA's facilitation effort for creating a
joint HD DVD patent license:

1. Objective:

To establish a portfolio of essential worldwide patents that are
necessary for implementation of the HD DVD Standard in order to
provide users with fair, reasonable, nondiscriminatory access to as
much essential intellectual property as possible under one license.

2. Scope of Evaluation:

Essential patents may consist of issued or otherwise enforceable
patents (but see Section 5 below) having one or more claims that are
infringed by use or implementation of the HD DVD Standard as embodied
in the following documents which may be obtained at
http://www.dvdfllc.co.jp/hd_dvd/hd_what.html.

A.
DVD Specifications for High Density Read-Only Disc (HD DVD-ROM)
----------------------------------------------------------------------
Part 1: PHYSICAL SPECIFICATIONS Ver. 1.2
Part 2: FILE SYSTEM SPECIFICATIONS Ver. 1.0

B.
DVD Specifications for High Definition Video (HD DVD-Video)
----------------------------------------------------------------------
DVD Specifications for High Definition Video Ver. 1.1
Reference Information - MLP Reference Information Ver. 1.0
Reference Information - DTS-HD Reference Information Ver. 1.0

C.
DVD Specifications for High Density Recordable Disc (HD DVD-R)
----------------------------------------------------------------------
Part 1: PHYSICAL SPECIFICATIONS Ver. 1.1
Optional Specifications: 1x-speed HD DVD-R Rev. 1.0
Optional Specifications: 2x-speed HD DVD-R Rev. 2.0
Optional Specifications: CASE Rev. 1.0
Optional Specifications: Holder for 8cm disc Rev. 1.0
Part 2: FILE SYSTEM SPECIFICATIONS Ver. 1.1

D.
DVD Specifications for High Density Recordable Disc (HD DVD-R for DL)
----------------------------------------------------------------------
Part 1: PHYSICAL SPECIFICATION Ver. 2.1
Optional Specifications: 1x-speed HD DVD-R for DL Rev. 1.0
Optional Specifications: CASE Rev. 1.0
Optional Specifications: Holder for 8cm disc Rev. 1.0
Part 2: FILE SYSTEM SPECIFICATIONS Ver. 2.0

E.
DVD Specifications for High Density Re-recordable Disc (HD DVD-RW)
----------------------------------------------------------------------
Part 1: PHYSICAL SPECIFICATIONS Ver. 1.1
Optional Specifications: 1x-speed HD DVD-RW Rev. 1.0
Optional Specifications: 2x-speed HD DVD-RW Rev. 2.0
Optional Specifications: CASE Rev. 1.0
Optional Specifications: Holder for 8cm disc Rev. 1.0
Part 2: FILE SYSTEM SPECIFICATIONS Ver. 1.0

F.
DVD Specifications for High Density Re-recordable Disc (HD DVD-RW for
DL)
----------------------------------------------------------------------
Part 1: PHYSICAL SPECIFICATION Ver. 2.1
Optional Specifications: 1x-speed HD DVD-RW for DL Rev. 1.0
Optional Specifications: CASE Rev. 1.0
Optional Specifications: Holder for 8cm disc Rev. 1.0
Part 2: FILE SYSTEM SPECIFICATIONS Ver. 2.0

G.
DVD Specifications for High Density Rewritable Disc (HD DVD-RAM)
----------------------------------------------------------------------
Part 1: PHYSICAL SPECIFICATIONS Ver. 1.1
Optional Specifications: 1x-speed HD DVD-Rewritable Rev. 1.01
Optional Specifications: CASE Rev. 1.0
Optional Specifications: Holder for 8cm disc Rev. 1.0
Part 2: FILE SYSTEM SPECIFICATIONS Ver. 1.0

H.
DVD Specifications for High Definition Video Recording (HD DVD-VR)
----------------------------------------------------------------------
DVD Specifications for High Definition Video Recording Ver. 1.0

In addition, to assure that the license development process may
benefit from the views of parties who potentially may obtain
essential patent rights in the future as well as those who currently
have them, any owner of a patent application with claims that the
owner believes are essential to the Standard and likely to issue in a
patent are welcome to submit it for an evaluation of its essentiality
by independent patent experts in order potentially to participate in
the license development process (only issued patents would be
included in the license, however). If a patent application with
essential claims does not issue as a patent or is found not to
contain essential claims when it subsequently issues as a patent, it
will no longer provide a basis for participation.

3. Organization

The patent portfolio may require at least the following functions:

First, as Evaluation Facilitator, MPEG LA has made a call described in
this announcement for the submission of patents (and patent
applications) for an evaluation of their essentiality by patent
experts and inclusion in a joint license if determined to be
essential. MPEG LA also will facilitate the evaluation process,
convene the initial group of essential patent (and patent
application) holders and facilitate their deliberations to consider
terms of a joint license as described below.

Second, an Evaluator (identified below) will evaluate patents (and
patent applications) for essentiality with respect to the HD DVD
Standard (as set forth in Section 2). Any party that believes it has
essential patents (or patent applications) is invited to submit them
for evaluation and inclusion in accordance with the terms and
procedures governing submissions (see Section 5).

Third, an initial group of essential patent (and patent application)
holders who have agreed to the terms governing the submission of
patents (and patent applications) and been found by the independent
patent experts to have essential intellectual property will be
convened to decide licensing terms. Patent (and patent application)
evaluations will continue and submissions may continue to be made for
later inclusion and participation by patent owners. After joint
license terms are decided, evaluations will continue throughout the
course of the license in order to include as much essential
intellectual property as possible.

Fourth, a licensing administrator, including details of the licensing
administrator's retention, will be determined by the initial group of
patent holders.

4. Licensing details

To be determined by the essential patent owners.

5. Planned Schedule

Initial submissions: by June 29, 2007. Any party that believes it has
a patent (or patent application) in US, EPO, Japan or Korea that is
essential to the standard and wishes to join the HD DVD Patent
Portfolio License is invited to submit it for evaluation of
essentiality by MPEG LA's patent experts (counterpart patents in
other countries may be included once there is an active license and a
party becomes a Licensor). Evaluations will be conducted by Dr.
Kenneth Rubenstein of Proskauer Rose LLP and his worldwide team of
patent experts in Europe, Japan and Korea. Further information, along
with terms and procedures governing patent submissions, can be found
at http://www.mpegla.com/pid/hddvd/. Although submissions may
continue to be made after that date, patent or patent application
owners who submit patents or patent applications by that date which
are determined to be essential will be invited to attend an initial
meeting of essential patent holders expected to be held in September
2007.
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