Offer Letters

June 20, 2016


Dear Madam/Sir:

On behalf of the DVD6C Licensing Group (DVD6C), we are pleased to inform you that DVD6C has revised its worldwide patent licensing program to offer a reduced royalty rate for DVD Read-Only Discs to licensees in good standing.

Under the revised licensing program, the royalty rate for DVD Read-Only Discs ( DVD-Video Discs, DVD-ROM Discs, and DVD-Audio Discs) will be reduced from US$0.04 to US$0.0275 per disc sold or otherwise transferred on or after January 1, 2016, and to US$0.0225 per disc sold or otherwise transferred on or after January 1, 2017, 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 January 1, 2016, 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 first half of 2016, that the licensee was in good standing as of July 31, 2016.  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%.

Please note that Blu-ray Disc ("BD") products, irrespective of whether they include DVD functionality, are not covered by this new royalty program

If you wish to take advantage of the new royalty program, please complete the attached form and return the same to the following address:

[CONTACT ADDRESS]

Upon receipt of the form, we will send you a revised DVD6C license agreement. 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, July 31, 2016, will qualify for the reduced rate for the first half of 2016. For more information, please refer to our website at http://www.dvd6cla.com.

This letter is without prejudice to any and all rights of the members of DVD6C, all of which are expressly reserved.

If you have any questions relating to this matter, please do not hesitate to contact the above.

With best regards,

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