FAQ

DVD Patent Joint Licensing Program Frequently Asked Questions

GENERAL

Q1. Why are these companies licensing patents jointly?
A1. Joint licensing is for the benefit of the parties who want to take licenses. Unless we license jointly, the parties who want to license these patents would need to contact and negotiate with each company separately, and enter into separate agreements with each of them. By licensing jointly, we can provide a simple and efficient process for obtaining licenses to these patents.
Q2. How does this DVD Patent Joint License relate to the DVD license offered by Philips, Pioneer, Sony and LG?
A2. The license we are offering and the license offered by Philips, Pioneer, Sony and LG are independent of each other. This means that you have to take both licenses if you need them.
Q3. Who needs licenses to the patents offered by this DVD Patent Joint Licensing Program?
A3. Any party that makes, uses, imports or sells products that are covered by the licensed patents, including all products that conform to the DVD-ROM, DVD-Video, DVD-Audio, DVD-R, DVD-RAM, DVD-RW, and DVD Video Recording Standard Specifications. In addition to the foregoing, the new DVD Patent Joint License also extends to +R/+RW Discs that conform to the +R/+RW Standard Specifications.
Q4. What products are covered by the licensed patents?
A4. DVD-Video Players, DVD-Audio Players, DVD-ROM Drives, DVD-ROM Discs, DVD-Video Discs, DVD-Audio Discs, DVD Decoders, DVD Video Recorders, DVD (Recordable Disc) Drives, DVD Encoders, DVD-R Discs, DVD-RW Discs, DVD-RAM Discs and DVD Recordable Disc Cases. In addition to the foregoing, the new DVD Patent Joint License extends to Time Limited DVD Discs as well as +R/+RW Discs that conform to the +R/+RW Standard Specifications.
Q5. What types of discs are licensed under the DVD Patent Joint License?
A5. The license covers disc that conform to the DVD Standard Specifications for Read-Only Discs, Recordable Discs, Rewritable Discs and Rewritable/Re-recordable Discs. In addition to the foregoing, the new DVD Patent Joint License also extends to Time Limited DVD Discs and +R and +RW Discs.
Q6. Does the DVD Patent Joint License cover flexible or "thin video" discs with the thickness of 0.6mm?
A6. No, because such discs do not conform to the DVD Standard Specifications.
Q7. Do licensees of the patents have to obtain a license through the DVD Patent Joint Licensing Program?
A7. The joint patent license approach is for the benefit of licensees, but interested parties can, at their option, also negotiate independently with each member of the DVD Patent Joint Licensing Program for a license to its respective patents. To contact each DVD6C member company, please see Contact Address of Individual License page.

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THE LICENSED PATENTS

Q8. Tell me about the patents that are covered under this DVD Patent Joint License.
A8. The DVD Patent Joint License covers all patents owned by the nine licensing companies that are necessarily infringed by implementation of or that claim technologies for which there is no realistic alternative in implementing, the DVD Standard Specifications for Read Only Disc, DVD Standard Specifications for Recordable Disc, DVD Standard Specifications for Rewritable Disc, DVD Standard Specifications for Re-recordable Disc, and the DVD Standard Specifications for Rewritable/Re-recordable Discs and DVD Video Recording. The new DVD Patent Joint License also covers all patents owned by the nine licensing companies that are necessarily infringed by implementation of, or that claim technologies for which there is no realistic alternative in implementing, the +R/+RW Standard Specifications.
Q9. How were the licensed patents identified?
A9. We retained impartial patent experts for this purpose. We had them study the claims of our patents. They compared the claimed elements of the patents and the Standard Specifications recited in A8. Based on this review, the impartial patent experts identified the patents that are necessarily infringed by implementation of, or for which there is no realistic alternative in implementing, the above-mentioned DVD Standard Specifications or the +R/+RW Standard Specifications.
Q10. How many patents are in the licensed patent list?
A10. Please see the patent list page.
Q11. Why did you not include other patents in this DVD Patent Joint License?
A11. Although there may be other relevant patents, such patents do not always infringed by every manufacturer of DVD related products. The joint license is intended to cover only those patents that must be used in implementation of, or for which there is no realistic alternative in implementing, the DVD Standard Specifications or the +R/+RW Standard Specifications recited in A8.

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DEPARTMENT OF JUSTICE

Q12. How does the U.S. Department of Justice view this DVD Patent Joint Licensing Program?
A12. The U.S. Department of Justice issued a business review letter expressing that it has reviewed the DVD Patent Joint License and does not intend to take any action against the DVD Patent Joint Licensing Program. For further details regarding this letter, please refer to the U.S. Department of Justice's web site at
http://www.usdoj.gov/atr/public/busreview/2485.htm.

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ROYALTIES

Q13. What are the royalties under the DVD Patent Joint License?
A13. Please see the royalty rate page for royalty rates applicable to new licensees.
* Net selling price means gross sales price less normal discounts actually granted; insurance fees, and packing and transportation charges as invoiced to customers; and duties and sales taxes actually incurred and paid.
Q14. How much is the royalty rate for multi-layered DVD discs such as DVD 9, DVD 10 and DVD 18?
A14. Royalties for DVD 9, DVD 10 and DVD 18 are the same as for a single-layered DVD disc.
Q15. Is the royalty rate negotiable?
A15. No. This DVD Patent Joint License Agreement will be entered into on a non-discrimination basis with all licensees. The royalty rates in the DVD Patent Joint Licensing Program have been set at levels that we believe are fair and reasonable.

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THE GRANTBACK

Q16. Are licensees required to license back any of their patents to DVD6C?
A16. The DVD Patent Joint License requires licensees to grant each of the licensing companies of DVD6C (and their licensees) a non-exclusive license on fair, reasonable and non-discriminatory terms to use any of their patents that are deemed essential for the manufacture, use or sale of DVD Products. This grantback is restricted only to those DVD Products actually licensed to the licensee.

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