DVD6C Licensing Group Revised Rate Program for DVD Players and Recorders

The DVD6C Licensing Group (DVD6C), consisting of nine leading developers of DVD technology and formats^(*),is revising its worldwide patent licensing program to offer a reduced royalty rate for DVD players and recorders to licensees in good standing.

Specifically, the revised licensing program provides for the following reduced rates for DVD players (DVD-Video players, DVD-Audio players, and DVD-ROM drives) and for DVD recorders (DVD-RAM drives, DVD-RW drives, DVD-R drives and DVD video recorders) – for licensees in good standing, i.e., licensees who have no overdue or incorrect royalty reports or overdue or underpaid royalties (including back royalties) and are otherwise in compliance with their license agreement with DVD6C:

$1.75 (reduced from $2.00) per player for all DVD players sold or otherwise transferred on or after July 1, 2016.
$2.50 (reduced from $4.00) per recorder for all DVD recorders sold or otherwise transferred on or after July 1, 2016.

These reduced royalty rates will be available to such licensees for DVD players and recorders sold or otherwise transferred during any reporting period beginning on or after July 1, 2016, provided that the licensee was in good standing as of the due date for payment of royalties for the immediately preceding reporting period, or, to qualify for the reduced rate for the second half of 2016, that the licensee entered into a new license agreement incorporating the revised royalty terms and was in good standing as of December 31, 2016. Licensees shall not be considered in good standing for any period for which an audit has revealed an underpayment of royalties of greater than 3%.

New or existing licensees interested in receiving the reduced royalty rate may enter into a new license agreement incorporating the revised royalty terms. Only those licensees who enter into a revised agreement will be eligible for the reduced royalty rate, and only those who sign the revised agreement by, and are in good standing on, December 31, 2016, will qualify for the reduced rate for the second half of 2016.

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.

^(*) Hitachi Consumer Electronics Co., Ltd., JVC Kenwood Corporation, Mitsubishi Electric Corporation, Panasonic Corporation, Samsung Electronics Co., Ltd., Sanyo Electric Co., Ltd., Sharp Corporation, Toshiba Corporation, and Warner Bros. Home Entertainment Inc.