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January 25, 2008


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 beginning on and after January 1, 2008, including offering a new DVD6C license agreement, which offers reduced royalty rates on certain products and additional licensing options.

         Under the revised licensing program, the royalty rates for DVD Read-Only Discs (i.e., the DVD-Video Disc, DVD-ROM Disc and DVD-Audio Disc) shall be reduced from US$0.045/Disc to US$0.04/Disc for sale of DVD-Read-Only Discs beginning on and after the effective date of the new DVD6C license agreement.

         In addition, +R Discs and +RW Discs implementing the +R/+RW Disc formats have been included as new categories of DVD Products licensed as part of the revised patent licensing program. The royalty rate for +R Discs under the new DVD6C license agreement shall be the same as the royalty rate for DVD-R Discs, and the royalty rate for +RW Discs under the new DVD6C license agreement shall be the same as the royalty rate for DVD-RW Discs.

         Further, Time Limited DVD Discs shall be included in the DVD-ROM Disc, DVD-Video Disc and DVD-Audio Disc categories of DVD Products licensed under the new DVD6C license agreement.

         You can take advantage of the reduced royalty rates for DVD Read-Only Discs and the other additional licensing options, by entering into the new DVD6C license agreement. The royalty rates applicable to the particular categories of products (should you elect to enter into the new license agreement and elect one or more licenses for the categories of products listed below) are as follows:

Category Royalty Rates
DVD-Video Player 4% of the net selling price or US$3.00,
whichever is greater;
US$8.00 at maximum
DVD-Audio Player 4% of the net selling price or US$3.00,
whichever is greater;
US$8.00 at maximum
DVD-ROM Drive 4% of the net selling price or US$3.00,
whichever is greater;
US$8.00 at maximum
DVD-ROM Disc US$0.04 per disc
DVD-Video Disc US$0.04 per disc
DVD-Audio Disc US$0.04 per disc
DVD Decoder 4% of the net selling price or US$1.00,
whichever is greater
DVD Video Recorder 4% of the net selling price or US$6.00,
whichever is greater
DVD (Recordable Disc) Drive 4% of the net selling price or US$6.00,
whichever is greater
DVD Encoder 4% of the net selling price or US$1.50,
whichever is greater
DVD-R Disc 4% of the net selling price or US$0.045,
whichever is greater
DVD-RW Disc 4% of the net selling price or US$0.065,
whichever is greater
DVD-RAM Disc 4% of the net selling price or US$0.065,
whichever is greater
Recordable Disc Case 4% of the net selling price or US$0.005 per piece,
whichever is greater
+R Disc 4% of the net selling price or US$0.045,
whichever is greater
+RW Disc 4% of the net selling price or US$0.065,
whichever is greater

         These royalty rates will be applicable to all sales of products covered by the new DVD6C license agreement made on and after the effective date of the new DVD6C license agreement.
If you wish to take advantage of the new license, please complete the attached form and return the same to the following address:

[CONTACT ADDRESS]

Upon receipt of the form, we will send you the new DVD6C license agreement. Only those licensees who sign a new license agreement will be able to benefit from the reduced royalty rates for DVD Read-Only Discs. For more information, please refer to our website at http://www.dvd6cla.com.

         If you would like to inquire about the availability of a license to a category of products not included in this letter, or to fewer than all of the essential patents for any DVD product category, please write to the DVD6C licensing agent at the address set forth above. In this respect, please note that DVD6C may not be able to make all particular licenses requested available on a portfolio basis and reserves the right to refer the company making the request to the individual members of DVD6C, each of which has committed to making any of its essential DVD Patents available for licensing on fair, reasonable and nondiscriminatory terms.
[To contact each DVD6C member company, please refer to Contact Address of Individual License.]

         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,



>>>Attachment. Application Form for Existing Licensees




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