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DVD6C Announces New Licensing Program

25 January, 2008


DVD6C Licensing Group
(Authorized Licensor: Toshiba Corporation)

JANUARY 25, 2008 -- 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 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.

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-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

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: toshihiro.shinohara@toshiba-tdls.co.jp

Europe and Africa:
Masahiro Ogura
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: masahiro.ogura@toshiba.co.jp

Asia (excluding Japan), Oceania and the Middle East:
Takao Kato
Department Manager
DVD Licensing Center
Hitachi Ltd.
Shin-Otemachi Bldg. 2-1,
Otemachi 2-chome, Chiyoda-ku,
Tokyo, 100-0004, Japan
Phone: +81-3-4232-5052
Fax: +81-3-4232-5091
E-Mail: takao.kato.uy@hitachi.com
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

Information in the press releases, including product prices and specifications, content of services and contact information, is current on the date of the press announcement,but is subject to change without prior notice.

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