Dear Madam/Sir:
In furtherance of our previous letter to you, we are pleased to offer an incentive program for the DVD Patent License offered to you before by the six companies, Hitachi, Ltd., Matsushita Electric Industrial Co., Ltd., Mitsubishi Electric Corporation, Time Warner Inc., Toshiba Corporation, and Victor Company of Japan, Limited.
The incentive program is as follows:
- If you execute the DVD Patent License Agreement within eight months after September 1, 2000, you will receive a discount of 25% on the amount due under the Agreement for the first six months of any of your activities prior to June 30, 2000 that infringe any of the patents included in the DVD Patent License.
- If, however, you execute the DVD Patent License Agreement after eight months of September 1, 2000, in addition to the payments required under the DVD Patent License Agreement, you will be responsible for paying interest, at a rate of two percent (2%) per month accruing from the date on which you produced the applicable DVD Products, on the amounts due under the Agreement for your past infringing activities.
We urge you to execute the Agreement now if you manufacture, use, import or sell any DVD related products utilizing any of the patents included in the DVD Patent License, taking advantage of this time-limited incentive program. If you have any questions regarding the foregoing, please do not hesitate to contact us.
With best regards,
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