DVD6C Reduces Royalties on Optical Discs and Encoder/Decoder

The DVD6C Licensing Group (DVD6C) consisting of nine 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. – has revised its worldwide patent licensing program beginning on and after January 1, 2008, including offering a new license agreement (the "New DVD6C License"), which offers reduced royalty rates on certain products and additional licensing options.

Key changes to the new licensing program include the following:

• Reduction of royalty rates for DVD Read-Only Discs (i.e., the DVD-Video Disc, DVD-Audio Disc and DVD-ROM Disc) from US$0.045/Disc to US$0.040/Disc for sales of DVD Read-Only Discs beginning on or after the Effective Date of the New DVD6C License.
• The addition of +R Discs and +RW Discs as new categories of licensed DVD Products. The royalty rates for +R Discs shall be the same as the current royalty rates for DVD-R Discs, and the royalty rates for +RW Discs shall be the same as the current royalty rates for DVD-RW Discs.
• Inclusion of Time Limited DVD Discs in the DVD-ROM Disc, DVD-Video Disc and DVD-Audio Disc categories of licensed DVD Products.

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.

The royalty rates to be offered under the New DVD6C License are shown below:

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 Decoder
4% of the net selling price or US$1.00 per decoder,
whichever is greater
DVD Video Recorder
4% of the net selling price or US$6.00 per recorder,
whichever is greater
DVD (Recordable Disc) Drive
4% of the net selling price or US$6.00 per drive,
whichever is greater
DVD Encoder
4% of the net selling price or US$1.50 per encoder,
whichever is greater
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
Recordable Disc Case
4% of the net selling price or US¢0.5 per case,
whichever is greater
+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

DVD6C Licensing Group