The DVD6C Licensing Group (DVD6C) announced that it has revised its worldwide patent licensing program beginning on and after January 1, 2010, including offering a new license agreement (New DVD6C License Agreement), which offers reduced royalty rates on certain products and additional licensing options.
According to the statement, key changes to the new licensing program include the following:
• Reduced royalty rates for DVD Recorders (i.e., 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.
Parties 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 state they 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 Agreement are as follows:
| 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 |
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.
As a matter of background, the DVD6C Licensing Group (DVD6C) is a patent pool formed by nine developers of DVD technology including Hitachi, Mitsubishi Electric, Panasonic, Samsung, Sanyo Electric, Sharp, Toshiba, JVC and Time Warner.
For more information visit: www.dvd6cla.com