Four leading companies — Mitsubishi Electric Corporation, Thomson Licensing, Toshiba Corporation and Warner Bros. Home Entertainment (collectively, the "BD4C Licensing Group") — today announced that they have commenced a worldwide joint licensing program beginning on March 1, 2010 for Blu-ray ("BD") and DVD patents essential for BD decoders, BD encoders, BD players, BD read-only discs, BD recordable discs, BD drives, BD/DVD hybrid discs and BD recorders ("BD Products"), including BD Products that incorporate DVD functionality.

The potential licensees will benefit from one-stop shopping for the essential patents owned or controlled by the four companies, which will facilitate the development of the BD market.

The license portfolio consists of BD and DVD patents, owned or controlled by the four companies, that are essential for BD Products. Licenses for the portfolio will be available for products that comply with the specifications for the BD formats promulgated by the Blu-ray Disc Association.

Interested parties are also free to negotiate separate license agreements, rather than taking a single portfolio license, with each of the four companies, which have committed to provide such licenses for their respective essential patents under fair, reasonable and nondiscriminatory terms and conditions.

The companies have authorized Toshiba to act as licensor for the BD4C Licensing Group in licensing their essential BD patents for this joint licensing program.

Royalties under the terms of the portfolio license will be as follows:

Category   Royalty
BD-Video Disc   US$0.04 per disc
BD-ROM Disc   US$0.04 per disc
BD-R Disc   US$0.065 per disc
BD-RE Disc   US$0.09 per disc
BD/DVD Hybrid Disc
(including BD/DVD Hybrid
ROM Discs and BD/DVD
Hybrid Video Discs)
  US$0.08 per disc
BD Decoder  
US$1.00 per decoder, with an annual cap of
US$10,000,000
BD Encoder  
US$1.50 per encoder, with an annual cap of
US$15,000,000
BD-Video Player   US$4.50 per player
BD-Video Combo Player   US$6.00 per player
BD Video Recorder   US$7.00 per recorder
BD-Video Combo Recorder   US$6.00 per recorder
BD-ROM Drive   US$4.00 per drive
BD Recordable Disc Drive   US$6.00 per drive
BD-ROM Combo Drive   US$5.00 per drive
BD Combo Recordable Disc
Drive
  US$5.00 per drive