February 12, 2002
FOR IMMEDIATE RELEASE
DVD6C Announces Limited-Time Offer for 33% Royalty Reduction for DVD Disc License
Redwood Shores, CA, USA — The DVD6C Licensing Group, which represents the six founders of the DVD Forum (formerly called the DVD Consortium) in the area of patent licensing, has provided new incentives for replicators of DVD Video and DVD-ROM discs to become licensed under the DVD 6C patents on or before March 31, 2002.
The DVD6C's patent royalties for DVD-ROM discs and DVD Video discs, which had previously been 7.5 cents US per disc, are being reduced to 6.5 cents US per disc, effective January 1, 2002. The royalty per disc will further decrease to 5 cents US on or after January 1, 2004. Namely, royalty for discs sold on or after January 1, 2002 will be 6.5 cents US per disc, and royalty for discs sold on or after January 1, 2004 will be 5 cents US per disc.
Under the new incentive program, companies that enter into the DVD 6C patent license on or before March 31, 2002, will enjoy reduced royalties for DVD Video and DVD ROM discs. The royalty for discs sold during 2001 will decrease from 7.5 to 6 cents US per disc, and the rate for discs sold on or after January 1, 2002 will decrease from 6.5 cents US per disc to 5 cents US per disc. Currently-licensed replicators will also enjoy these new reduced royalty rates.
For example, for current licensees and those enter into 6C license by March 31, 2002, the royalty rates shall be as follows: 7.5 cents US per disc sold before January 1, 2001; 6 cents US per disc sold during the year 2001; and 5 cents US per disc sold on or after January 1, 2002. Current licensees that have already paid royalties at the previous rates will receive a credit against future royalties, while new licensees will pay back royalties at these rates.
Replicators or marketers of DVD discs who are not licensed by March 31, 2002 will continue to accrue royalties, plus interest, at the following rates: 7.5 cents US per disc sold before January 1, 2002; 6.5 cents US per disc sold during the years 2002-2003; and 5 cents US per disc sold on or after January 1, 2004. Unlicensed replicators may also be subject to lawsuits by patent holders..
(The Chart of Royalty Reduction Program - Click Here -)
"While DVD replicators and marketers have been the focus of the DVD6C's attention during the last 24 months," stated Masa Saito, DVD6C's licensing regional contact for the Americas, "we will increasingly concentrate on content owners in the movie/entertainment, game and software industries. We believe these content owners won't be willing to expose their companies to being co-named in DVD patent infringement lawsuits precipitated by hiring unlicensed replicators of their discs."
To make it easy for DVD replicators, equipment manufacturers, or content owners to determine the identity of authorized DVD6C licensees, an informative website has been posted at www.dvd6cla.com with daily updates. "We encourage content owners to also use this site to ensure they are contracting with legally licensed replicators." Saito stated.
DVD Patent Infringement Suit Filed
On December 20, 2001, the first lawsuit charging infringement on DVD patents was filed in U.S. District Court in Wilmington, Delaware, by DVD6C member Matsushita Electric Industrial, against replicators Cinram International and Sonopress. According to counsel for Matsushita, other complaints could be filed soon.
