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September 4, 2008
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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 July 1, 2008, including
offering a new DVD6C license agreement, which offers reduced royalty rates on certain products.
Under the revised licensing program, the royalty rate for DVD Decoder shall be reduced from the
greater of 4% of the Net Selling Price of the DVD Decoder or US$1.00 per decoder to US$0.50 per
decoder, and the royalty rate for DVD Encoder shall be reduced from the greater of 4% of the Net
Selling Price of the DVD Encoder or US$1.50 per decoder to US$0.75 per decoder, beginning on and
after the effective date of the new DVD6C license agreement.
You can take advantage of the reduced royalty rates for DVD Decoder and DVD Encoder, 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:
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| Category |
New Royalty |
DVD Decoder (Newly revised) |
The greater of
(i) 4% of the net selling price or
(ii) US$1.00 per decoder
US$0.50 per decoder on or after the effective
date of the New DVD6C License
|
DVD Encoder (Newly revised) |
The greater of
(i) 4% of the net selling price or
(ii) US$1.50 per decoder
US$0.75 per encoder on or after the effective
date of the New DVD6C License
|
| DVD-Video Player |
The greater of
(i) 4% of the net selling price or
(ii) US$4.00 per player or,
US$3.00 per player on or after the effective
date of the New DVD6C License
US$8.00 at maximum on or after January 1, 2003
|
| DVD-Audio Player |
The greater of
(i) 4% of the net selling price or
(ii) US$4.00 per player or,
US$3.00 per player on or after the effective
date of the New DVD6C License
US$8.00 at maximum on or after January 1, 2003
|
| DVD-ROM Drive |
The greater of
(i) 4% of the net selling price or
(ii) US$4.00 per drive or,
US$3.00 per drive on or after the effective
date of the New DVD6C License
US$8.00 at maximum on or after January 1, 2003
|
| DVD-ROM Disc |
US$0.075 per disc;
US$0.065 per disc on or after January 1, 2002;
US$0.05 per disc on or after January 1, 2004;
US$0.040 per disc on or after the effective date of the New DVD6C License
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| DVD-Video Disc |
US$0.075 per disc;
US$0.065 per disc on or after January 1, 2002;
US$0.05 per disc on or after January 1, 2004;
US$0.040 per disc on or after the effective date of the New DVD6C License
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| DVD-Audio Disc |
US$0.075 per disc;
US$0.05 per disc on or after January 1, 2004;
US$0.040 per disc on or after the effective date of the New DVD6C License
|
| DVD Video Recorder |
The greater of
(i) 4% of the net selling price or
(ii) US$6.00 per recorder
|
| DVD (Recordable Disc) Drive |
The greater of
(i) 4% of the net selling price or >br>
(ii) US$6.00 per drive
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| DVD-R Disc |
The greater of
(i) 4% of the net selling price or
(ii) US$0.075 per disc;
US$0.045 per disc on or after January 1, 2006
|
| DVD-RW Disc |
The greater of
(i) 4% of the net selling price or
(ii) US$0.075 per disc or,
US$0.065 per disc on or after the effective date of the New DVD6C License
|
| DVD-RAM Disc |
The greater of
(i) 4% of the net selling price or
(ii) US$0.075 per disc or,
US$0.065 per disc on or after the effective date of the New DVD6C License
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| Recordable Disc Case |
The greater of
(i) 4% of the net selling price or
(ii) US¢0.5 per case
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| +R Disc |
The greater of
(i) 4% of the net selling price or
(ii) US$0.075 per disc, or
US$0.045 per disc on or after January 1, 2006
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| +RW Disc |
The greater of
(i) 4% of the net selling price or
(ii) US$0.075 per disc or,
US$0.065 per disc on or after the effective date of the New DVD6C License
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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]
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 regional contact 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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Copyright© 2002-2010 DVD6C LICENSING GROUP. All Rights Reserved.
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