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 January 1, 2018
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 all DVD-Video Players sold or otherwise transferred on or after July 1, 2016 through and including December 31, 2017, US$1.50 per player for all DVD-Video Players sold or otherwise transferred on or after January 1, 2018 through and including December 31, 2018, and US$1.25 per player for all DVD-Video Players sold or otherwise transferred on or after January 1, 2019, 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 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$1.75, US$1.50, and/or US1.25 per player rate shall be subject to the US$2.00 per player rate for any period for which an audit has revealed an underpayment of royalties of greater than 3%.
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 all DVD-Audio Players sold or otherwise transferred on or after July 1, 2016 through and including December 31, 2017, US$1.50 per player for all DVD-Audio Players sold or otherwise transferred on or after January 1, 2018 through and including December 31, 2018, and US$1.25 per player for all DVD-Audio Players sold or otherwise transferred on or after January 1, 2019, 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 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$1.75, US$1.50, and/or US1.25 per player rate shall be subject to the US$2.00 per player rate for any period for which an audit has revealed an underpayment of royalties of greater than 3%.
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 drive for all DVD-ROM drives sold or otherwise transferred on or after July 1, 2016 through and including December 31, 2017, US$1.50 per drive for all DVD-ROM Drives sold or otherwise transferred on or after January 1, 2018 through and including December 31, 2018, and US$1.25 per drive for all DVD-ROM Drives sold or otherwise transferred on or after January 1, 2019, 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 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$1.75, US$1.50, and/or US1.25 per drive rate shall be subject to the US$2.00 per drive rate for any period for which an audit has revealed an underpayment of royalties of greater than 3%.
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 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 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 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 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$2.50 per recorder rate shall be subject to the US$4.00 per recorder rate for any period for which an audit has revealed an underpayment of royalties of greater than 3%.
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 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$2.50 per drive rate shall be subject to the US$4.00 per drive rate for any period for which an audit has revealed an underpayment of royalties of greater than 3%.
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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