Offer Letters

November 29, 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 reduced royalty rates for DVD Players and Recorders to licensees in good standing.

Under the revised licensing program, the royalty rates will be reduced (a) for DVD Players (DVD-Video Players, DVD-Audio Players, and DVD-ROM Drives) from US$2.00 to US$1.75 per DVD Player and (b) for DVD Recorders (DVD-RAM Drives, DVD-RW Drives, DVD-R Drives and DVD Video Recorders) from US$4.00 to US$2.50 per DVD Recorder respectively sold or otherwise transferred on or after July 1, 2016, 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. These reduced royalty rates will be available to such licensees for DVD Players and Recorders sold or otherwise transferred during any reporting period beginning on or after July 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 second half of 2016, that the licensee was in good standing as of December 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 rates, and only those who sign the revised agreement by, and are in good standing on, December 31, 2016, will qualify for the reduced rates for the second 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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