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DVD6C Announces New Licensing Program

1 Sep, 2010

September 1, 2010— The DVD6C Licensing Group (DVD6C) consisting of nine leading developers of DVD technology and formats — Hitachi, Ltd., Mitsubishi Electric Corporation, Panasonic 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, 2010, including offering a new license agreement (the "New DVD6C License Agreement"), which offers reduced royalty rates on certain products and additional licensing options.

Key changes to the new licensing program include the following:

  • Reduced royalty rates for DVD Recorders (i.e., the DVD-RAM Drive, DVD-RW Drive, DVD-R Drive and DVD Video Recorder licensed DVD Product categories) from (i) the greater of 4% of the net selling price or US$6.00 per recorder to (ii) a flat rate of US$4.00 per recorder on or after the effective date of the New DVD6C License Agreement; provided, however, that such reduced royalty rates will apply retroactively as of January 1, 2010 for licensees who sign the New DVD6C License Agreement by October 31, 2010.
  • Reduced royalty rates for DVD Players (i.e., the DVD-Video Player, DVD-ROM Drive and DVD-Audio Player licensed DVD Product categories) from (i) the greater of 4% of the net selling price of the player (up to a maximum of US$8.00 per player) or US$4.00 per player (US$3.00 per player for licensees licensed on or after January 1, 2005) to (ii) a flat rate of US$2.00 per player effective on or after the later of (i) the effective date of the New DVD6C License Agreement and (ii) January 1, 2011.
  • Shortened initial term of the license, which now runs to the end of 2012.
  • Clarification that Blu-ray Disc ("BD") products are not covered by the new license, irrespective of whether they include DVD functionality.

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.

For the convenience of current and prospective licensees, the royalty rates to be offered under the New DVD6C License Agreement are shown below:

Category Royalty
DVD-Video Player
(Newly revised)
The greater of
(i) 4% of the net selling price (up to a maximum of US$8.00 per player) or
(ii) US$4.00 per player (US$3.00 per player for licensees licensed on or after January 1, 2005); provided, that the reduced royalty rate of US$2.00 per player will apply on or after the later of (i) the effective date of the New DVD6C License Agreement and (ii) January 1, 2011
DVD-Audio Player
(Newly revised)
The greater of
(i) 4% of the net selling price (up to a maximum of US$8.00 per player) or
(ii) US$4.00 per player (US$3.00 per player for licensees licensed on or after January 1, 2005); provided, that the reduced royalty rate of US$2.00 per player will apply on or after the later of (i) the effective date of the New DVD6C License Agreement and (ii) January 1, 2011
DVD-ROM Drive
(Newly revised)
The greater of
(i) 4% of the net selling price (up to a maximum of US$8.00 per drive) or
(ii) US$4.00 per drive (US$3.00 per drive for licensees licensed on or after January 1, 2005); provided, that the reduced royalty rate of US$2.00 per drive will apply on or after the later of (i) the effective date of the New DVD6C License Agreement and (ii) January 1, 2011
DVD Video Recorder
(Newly revised)
US$4.00 per recorder on or after the effective date of the New DVD6C License Agreement; provided, that the reduced royalty rate will apply retroactively as of January 1, 2010 for licensees who sign the New DVD6C License Agreement by October 31, 2010
DVD (Recordable Disc) Drive
(Newly revised)
US$4.00 per drive on or after the effective date of the New DVD6C License Agreement; provided, that the reduced royalty rate will apply retroactively as of January 1, 2010 for licensees who sign the New DVD6C License Agreement by October 31, 2010
DVD-ROM Disc US$0.04 per disc on or after the effective date of the New DVD6C License Agreement

DVD-Video Disc

US$0.04 per disc on or after the effective date of the New DVD6C License Agreement
DVD-Audio Disc US$0.04 per disc on or after the effective date of the New DVD6C License Agreement
DVD Decoder US$0.50 per decoder on or after the effective date of the New DVD6C License Agreement
DVD Encoder US$0.75 per encoder on or after the effective date of the New DVD6C License Agreement
DVD-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
DVD-RW Disc The greater of:
(i) 4% of the net selling price or
(ii) US$0.065 per disc on or after the effective date of the New DVD6C License Agreement
DVD-RAM Disc The greater of:
(i) 4% of the net selling price or
(ii) US$0.065 per disc on or after the effective date of the New DVD6C License Agreement
Recordable Disc Case The greater of:
(i) 4% of the net selling price or
(ii) US$0.005 per case
+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$0.065 per disc on or after the effective date of the New DVD6C License Agreement

Please note that BD products, irrespective of whether they include DVD functionality, are not covered by the New DVD6C License Agreement.  Licenses for the DVD portions of BD products granted to existing licensees under the prior DVD6C License remain unchanged until the existing licensees enter into the New DVD6C License Agreement.

For further information regarding the DVD6C licensing program, please visit the 6C web site (www.dvd6cla.com) or contact one of the following regional contacts:

Japan:


Masayuki Miyanaga
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:  dvd6c-jp@dvd6cla.com

Europe and Africa:

Doris Reed
DVD6C Licensing Administrator
Toshiba Information Systems (U.K.) Ltd.
Toshiba Court
Weybridge Business Park,
Addlestone Road,
Weybridge,  Surrey KT15 2UL
United Kingdom
Phone: +44(0)1932 825061
Fax: +44(0)1932 839121
E-mail: dvd6c-eu@dvd6cla.com

Asia (excluding Japan), Oceania and the Middle East:

Shigeru Komatsu
Senior Manager
DVD Licensing Center
Hitachi Consumer Electronics Co., Ltd.
292 Yoshida-cho, Totsuka-ku,
Yokohama, 244-0817, Japan
Phone:   +81-45-415-2135
Fax:   +81-45-866-5824
E-Mail: dli-inquiry@itg.hitachi.co.jp

The Americas:

Tatsuya Ii
Regional Contact for Americas, Panasonic
201 Redwood Shores Parkway, Room #410,
Redwood Shores, California 94065, USA
Phone: 650-802-3146
Fax: 650-802-3100
E-Mail: dvd6c@gg.jp.panasonic.com

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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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