One-Red Reduced Royalty Rates and Paid-Up Licenses for DVD Licensing Programs

One-Red LLC, a company formed by Koninklijke Philips N.V., LG Electronics, Inc., Pioneer Corporation and Sony Corporation, reduced royalty rates for its joint DVD license programs.

In addition, the company also announced it will offer paid-up licenses for selected DVD patent license programs to existing licensees.

“One-Red is pleased to offer these reduced royalty rates and paid-up licenses at favorable terms in view of the fact that DVD patents are expiring in the coming years,” said Robert van Eijk, chief operations officer, One-Red. “We believe these are appropriate actions for the market as both measures will enable manufacturers to reduce costs and the paid-up license will offer additional benefits enabling licensees to simplify business operations. We are in the process of informing our licensees so that they can plan their business accordingly.“

Applicable royalty rates will be reduced by 50% for all shipments of licensed DVD products starting October 1, 2016. For licensees in good standing, the royalty rate for DVD Video players will be reduced from $2.80 to $1.40; for DVD Video discs the royalty rate will decrease from $0.030 to $0.015.

The royalty rates for all of One-Red’s DVD license programs are available on company’s website.

Paid-up licenses will be offered for firm’s DVD Video and ROM Player as well as its DVD Video and ROM Disc programs. Paid-up licenses will cover all worldwide shipments starting October 1, 2016 and will be valid until expiration of all licensed patents. Paid-up licenses will include additional benefits for licensees and will be available to licensees in good standing if signed by December 15, 2016. The terms of the new paid-up license will be available on firm’s website in August.

Read also:
DVD6C Licensing Group Reduced Royalties for DVD Read-Only Discs
$0.0275 per disc sold after January 1, 2016, 0.0225 after January 1, 2017
2016.06.30 | Press Release