DVD6C PATENT LICENSING / News

DVD6C Licensing Group (Authorized Licensor: Toshiba Corporation)

DVD6C Announces Limited-Time Offer for 33% Royalty Reduction for DVD-Audio Disc License

October 15, 2003 --- The DVD6C Licensing Group (DVD6C), the industry body representing seven leading developers of DVD technology and formats-AOL Time Warner Inc., Hitachi, Ltd., IBM Corporation, Matsushita Electric Industrial Co., Ltd, Mitsubishi Electric Corporation, Toshiba Corporation and Victor Company of Japan, Ltd. (JVC)-announced that it has provided an incentive for replicators of DVD-Audio Discs to become licensed under the DVD6C Recordable DVD and DVD-Audio patents on or before December 31, 2003. The DVD6C's patent royalty for DVD Audio Discs is 7.5 US cents per disc sold on or before December 31, 2003, and the royalty will be 5 US cents per disc sold on or after January 1, 2004. Under the new incentive program, companies that enter into the new DVD6C patent license that covers Recordable DVD and DVD-Audio patents together with DVD ROM/Video patents on or before December 31, 2003, will enjoy reduced royalty for DVD-Audio Discs. For these companies that enter into the new DVD6C patent license on or before December 31, 2003, the royalty for DVD-Audio Discs sold on or before December 31, 2003 will decrease from 7.5 US cents to 5 US cents and will be retroactively in effective for past sales.

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