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Tuesday, March 01, 2005
DVD6C Announces Changes to DVD Licensing Program


The DVD6C Licensing Group (DVD6C) today announced that it will revise its worldwide patent licensing program to offer licensees more licensing options and reduced royalty rates on certain products.

DVD6C is representing seven leading developers of DVD technology and formats -- Hitachi, Ltd., IBM Corporation, Matsushita Electric Industrial Co., Ltd. (Panasonic), Mitsubishi Electric Corporation, Toshiba Corporation, Victor Company of Japan, Ltd. (JVC) and Warner Home Video Inc.

Under the revised licensing program, DVD6C licensees have the option of selecting portfolio licenses for particular categories of products, including DVD-Video Players, DVD Recorders, DVD Drives, DVD-Video Discs and DVD Recordable Discs. In addition, if a licensee enters into the new category license, minimum royalties for DVD-Video Players, DVD-Audio Players and DVD-ROM Drives will be reduced from US$4.00 to US$3.00, royalties for DVD-ROM, DVD-Video and DVD-Audio Discs will be reduced from US5 cents to US4.5 cents, and minimum royalties for DVD-R, -RW and -RAM Discs will be reduced from US7.5 cents to US6.5 cents.

DVD6C has licensed essential DVD patents owned by its member companies since June 1999 (adding licensing for DVD-Recorders, DVD-Audio Players, DVD-R, -RW and -RAM Drives, DVD-Audio, -R, -RW, -and -RAM Discs and Cases in September 2003). DVD6C's licenses cover patents owned by the 6C member companies that are essential for products that comply with the DVD-format specifications defined by the DVD Forum.

The new royalty rates for the 14 categories are shown below. Reduced royalties for licensees who sign the revised license agreement by June 30, 2005 will be effective retroactive to January 1, 2005. Royalties for licensees who sign the revised license agreement after July 1, 2005 will be effective as of the signature date.

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Category Royalty
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DVD-Video Player 4% of the net selling price or US$3.00, whichever is greater; US$8.00 at maximum
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DVD-Audio Player 4% of the net selling price or US$3.00, whichever is greater; US$8.00 at maximum
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DVD-ROM Drive 4% of the net selling price or US$3.00, whichever is greater; US$8.00 at maximum
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DVD-ROM Disc US4.5 cents per disc
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DVD-Video Disc US4.5 cents per disc
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DVD-Audio Disc US4.5 cents per disc
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DVD Decoder 4% of the net selling price or US$1.00, whichever is greater
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DVD (Video) Recorder 4% of the net selling price or US$6.00, whichever is greater
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DVD (Recordable Disc) 4% of the net selling price or US$6.00, Drive whichever is greater
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DVD Encoder 4% of the net selling price or US$1.50, whichever is greater
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DVD-R Disc 4% of the net selling price or US6.5 cents, whichever is greater
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DVD-RW Disc 4% of the net selling price or US6.5 cents, whichever is greater
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DVD-RAM Disc 4% of the net selling price or US6.5 cents, whichever is greater
----------------------------------------------------------------------
Recordable Disc Case 4% of the net selling price or US0.5 cents, whichever is greater
----------------------------------------------------------------------

Interested parties will remain free to negotiate individual license agreements with DVD6C's member companies, rather than taking licenses from DVD6C. The member companies have committed to provide such licenses under fair, reasonable and non-discriminatory terms and conditions.

For further information on the revised DVD6C licensing program, please contact one of the following regional agents:

Japan:
Toshihiro Shinohara
Vice President and General Manager
Licensing
Toshiba DVD License Services, Inc.
5th Floor, Sumitomo-Hamamatsucho Bldg.
18-16, Hamamatsucho 1-chome, Minato-ku
Tokyo 105-0013, Japan
Phone: +81-3-5777-3286
Fax: +81-3-5401-2503
E-mail: toshihiro.shinohara@toshiba-tdls.co.jp

Europe and Africa:
Masahiro Ogura
Vice President & General Manager
Toshiba of Europe Limited
Audrey House, Ely Place
London, EC1N 6SN
United Kingdom
Phone: +44(0)20 7421 7610
Fax: +44(0)20 7421 7626
E-mail: masahiro.ogura@toshiba.co.jp

Asia (excluding Japan), Oceania and the Middle East:
Joji Ozaki
Department Manager
DVD Licensing Center
Hitachi Ltd.
292, Yoshida-cho, Totsuka-ku,
Yokohama 244-0817, Japan
Phone: +81-45-866-5815
Fax: +81-45-866-5906
E-Mail: ozakijo@itg.hitachi.co.jp

The Americas:
Masahisa Saito
Panasonic Corporation of North America
Exclusive Regional Agent for DVD 6C Licensing Agency
c/o Weil, Gotshal & Manges LLP
201 Redwood Shores Parkway
Redwood Shores, California 94065, USA
Phone: 650-802-3146
Fax: 650-802-3100
E-Mail: saitom@us.panasonic.com


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