Patent Holders Cut Some DVD Licensing Rates

The nine member consortium that holds most of the important patents covering DVD technology is cutting some of its license rates.

The DVD6C group will cut the minimum payment for DVD decoders from US$1 per decoder to $0.50, and for DVD encoders from $1.50 per encoder to $0.75, it said.

The new rates will help lessen the licensing burden on low-cost products as the standard license fee for decoders and encoders is the greater of 4 percent of the net selling price or the fixed amount.

The group pools patents from Hitachi, JVC, Mitsubishi, Sanyo, Samsung, Panasonic, Warner Bros., Toshiba and Sharp so that companies building products and software that use DVD patents have a one-stop shop from which to license the technology.

Other licensing fees for DVD players, recorders and discs remain unchanged.

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