DVD6C announces revised rate program for DVD read-only discs

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The DVD6C Licensing Group (DVD6C) consisting of nine leading developers of DVD technology and formats — Hitachi Consumer Electronics Co, JVC Kenwood Corp, Mitsubishi Electric Corp, Panasonic Corp, Samsung Electronics Co, Sanyo Electric Co, Sharp Corp, Toshiba Corp and Warner Bros Home Entertainment Inc — announced that it is revising its worldwide patent licensing program to offer a reduced royalty rate for DVD Read-Only Discs to licensees in good standing.

Specifically, the revised licensing program provides for a reduced rate – from $0.04 to $0.0375 per disc – for read-only discs (DVD-Video Discs, DVD-ROM Discs, and DVD-Audio Discs) 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.

This reduced royalty rate will be available to such licensees for read-only discs sold or otherwise transferred during any reporting period beginning on or after July 1, 2011, 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 2011, that the licensee entered into a new license agreement incorporating the revised royalty terms and was in good standing as of Jan 31, 2012. 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, Jan 31, 2012, will qualify for the reduced rate for the second half of 2011.

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.