The DVD6C Licensing Group (DVD6C) consisting of nine leading developers of DVD technology and formats — Hitachi, Ltd., Matsushita Electric Industrial Co., Ltd. (Panasonic), Mitsubishi Electric Corporation, Samsung Electronics Co., Ltd., Sanyo Electric Co., Ltd., Sharp Corporation, Toshiba Corporation, Victor Company of Japan, Ltd. (JVC) and Warner Bros. Home Entertainment Inc. — today announced that it has revised its worldwide patent licensing program beginning on and after July 1, 2008, including offering a new license agreement (the “New DVD6C License”), which offers the following reduced royalty rates on DVD Decoder and DVD Encoder, respectively.
The DVD6C’s patent royalty for DVD Decoder is the greater of 4% of the Net Selling Price of the DVD Decoder or US$1.00 per decoder sold on or before the effective date of the New DVD6C License, and the new royalty rate will be US$0.50 per decoder on or after the effective date of the New DVD6C License.
Similarly, the DVD6C’s patent royalty for DVD Encoder is the greater of 4% of the Net Selling Price of the DVD Encoder or US$1.50 per encoder sold on or before the effective date of the New DVD6C License, and the new royalty rate will be US$0.75 per encoder on or after the effective date of the New DVD6C License.
