Royalty Rates under DVD6C Licensing Program

Royalty Rates under DVD6C Licensing Program

The current royalty rates applicable to new licensees who will enter into the DVD6C Patent License Agreement are as follows:


As of July 1, 2016
Category Royalty
DVD-Video Player The greater of:
(i) 4% of the net selling price (up to a maximum of US$8.00 per player) or
(ii) US$4.00 per player;
US$2.00 per player on or after the effective date of the New DVD6C License Agreement;

US$1.75 per player for any semi-annual reporting period beginning on or after July 1, 2016, for ?those licensees with no overdue or incorrect royalty reports or overdue or underpaid royalties (including back royalties) and otherwise in compliance with the New DVD6C License Agreement:
(i) as of the due date for payment of royalties for the immediately preceding semi-annual reporting period, or
(ii) to qualify for the reduced rate for the second half of 2016, as of, and only if the New DVD6C License Agreement has been entered into on or before, December 31, 2016.
DVD-Audio Player The greater of:
(i) 4% of the net selling price (up to a maximum of US$8.00 per player) or
(ii) US$4.00 per player;
US$2.00 per player on or after the effective date of the New DVD6C License Agreement;

US$1.75 per player for any semi-annual reporting period beginning on or after July 1, 2016, for ?those licensees with no overdue or incorrect royalty reports or overdue or underpaid royalties (including back royalties) and otherwise in compliance with the New DVD6C License Agreement:
(i) as of the due date for payment of royalties for the immediately preceding semi-annual reporting period, or
(ii) to qualify for the reduced rate for the second half of 2016, as of, and only if the New DVD6C License Agreement has been entered into on or before, December 31, 2016.
DVD-ROM Drive The greater of:
(i) 4% of the net selling price (up to a maximum of US$8.00 per drive) or
(ii) US$4.00 per drive;
US$2.00 per drive on or after the effective date of the New DVD6C License Agreement;

US$1.75 per player for any semi-annual reporting period beginning on or after July 1, 2016, for ?those licensees with no overdue or incorrect royalty reports or overdue or underpaid royalties (including back royalties) and otherwise in compliance with the New DVD6C License Agreement:
(i) as of the due date for payment of royalties for the immediately preceding semi-annual reporting period, or
(ii) to qualify for the reduced rate for the second half of 2016, as of, and only if the New DVD6C License Agreement has been entered into on or before, December 31, 2016.
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$0.04 per disc on or after the effective date of the New DVD6C License Agreement;

US$0.0275 per disc for any semi-annual reporting period beginning on or after January 1, 2016, and US$0.0225 per disc for any semi-annual reporting period beginning on or after January 1, 2017, for those licensees with no overdue or incorrect royalty reports or overdue or underpaid royalties (including back royalties) and otherwise in compliance with the New DVD6C License Agreement:
(i) as of the due date for payment of royalties for the immediately preceding semi-annual reporting period, provided that a licensee who otherwise qualifies for the US$0.0275, and/or US0.0225 ?per disc rate shall be subject to the US$0.04 per disc rate for any period for which an audit has revealed an underpayment of royalties of greater than 3%.
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$0.04 per disc on or after the effective date of the New DVD6C License Agreement;

US$0.0275 per disc for any semi-annual reporting period beginning on or after January 1, 2016, and US$0.0225 per disc for any semi-annual reporting period beginning on or after January 1, 2017, for those licensees with no overdue or incorrect royalty reports or overdue or underpaid royalties (including back royalties) and otherwise in compliance with the New DVD6C License Agreement:
(i) as of the due date for payment of royalties for the immediately preceding semi-annual reporting period, provided that a licensee who otherwise qualifies for the US$0.0275, and/or US0.0225 per disc rate shall be subject to the US$0.04 per disc rate for any period for which an audit has revealed an underpayment of royalties of greater than 3%.
DVD-Audio Disc US$0.075 per disc;
US$0.05 per disc on or after January 1, 2004;
US$0.04 per disc on or after the effective date of the New DVD6C License Agreement;

US$0.0275 per disc for any semi-annual reporting period beginning on or after January 1, 2016, and US$0.0225 per disc for any semi-annual reporting period beginning on or after January 1, 2017, for those licensees with no overdue or incorrect royalty reports or overdue or underpaid royalties (including back royalties) and otherwise in compliance with the New DVD6C License Agreement:
(i) as of the due date for payment of royalties for the immediately preceding semi-annual reporting period, provided that a licensee who otherwise qualifies for the US$0.0275, and/or US0.0225 per disc rate shall be subject to the US$0.04 per disc rate for any period for which an audit has revealed an underpayment of royalties of greater than 3%.
DVD Decoder 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 Agreement
DVD Video Recorder The greater of:
(i) 4% of the net selling price or
(ii) US$6.00 per recorder;
US$4.00 per recorder on or after the effective date of the New DVD6C License Agreement;

US$2.50 per recorder for any semi-annual reporting period beginning on or after July 1, 2016, for ?those licensees with no overdue or incorrect royalty reports or overdue or underpaid royalties (including back royalties) and otherwise in compliance with the New DVD6C License Agreement:
(i) as of the due date for payment of royalties for the immediately preceding semi-annual reporting period, or
(ii) to qualify for the reduced rate for the second half of 2016, as of, and only if the New DVD6C License Agreement has been entered into on or before, December 31,2016.
DVD (Recordable Disc) Drive The greater of:
(i) 4% of the net selling price or
(ii) US$6.00 per drive;
US$4.00 per drive on or after the effective date of the New DVD6C License Agreement;

US$2.50 per drive for any semi-annual reporting period beginning on or after July 1, 2016, for ?those licensees with no overdue or incorrect royalty reports or overdue or underpaid royalties (including back royalties) and otherwise in compliance with the New DVD6C License Agreement:
(i) as of the due date for payment of royalties for the immediately preceding semi-annual reporting period, or
(ii) to qualify for the reduced rate for the second half of 2016, as of, and only if the New DVD6C License Agreement has been entered into on or before, December 31, 2016.
DVD Encoder The greater of:
(i) 4% of the net selling price or
(ii) US$1.50 per encoder;
US$0.75 per encoder on or after the effective date of the New DVD6C License Agreement
DVD-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
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 Agreement
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 Agreement
Recordable Disc Case The greater of:
(i) 4% of the net selling price or
(ii) US$0.005 per case
+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
+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 Agreement

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