March 14, 2007

DVD6C announces amendment of Article 3.2 of the DVD6C License Agreement

Please be advised that the DVD6C licensing group has amended Article 3.2 of the DVD6C License Agreement to delete the phrase "or its licensing practices" at the end of Article 3.2(c) with respect to all DVD6C License Agreements entered into on or after March 14, 2007. The amended Article 3.2 reads as follows:

"Each member of the Group shall have the right to terminate the license granted herein under any of the DVD Patents owned by such member of the Group in the event that Licensee has brought a claim(s) in a lawsuit or other proceeding against such member of the Group that (a) alleges that any DVD Product made, imported, used, offered for sale, sold or otherwise disposed of by any member of the Group infringes any patent(s) that are Essential to make, use, or sell DVD Products, and Licensee has refused to grant such member of the Group a license on fair and reasonable terms and conditions under such patents upon which the lawsuit or other proceeding is based for the manufacture, use or sale of DVD Products, or (b) challenges, on any grounds, the validity or essential nature of an Essential DVD Patent or the enforceability of the license granted herein, or (c) challenges, on any grounds, the validity or legality of the DVD 6C pool. In the event that any dispute arises between Licensee and Licensor or any other member of the Group as to determination of the fair and reasonable terms and conditions for licensing patents as provided in (a) above and such dispute cannot be settled between the parties, the dispute shall be submitted to and determined by an expert jointly appointed and paid by Licensee and Licensor or the other member of the Group."

In order for all existing licensees to benefit from this amendment, the DVD6C licensing group members will not rely on the deleted language "or its licensing practices" in exercising their respective rights under Article 3.2 with respect to all existing licensees.