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Royalty Rates Lowered for DVD, CD

3 Jul, 2012 By: Chris Tribbey

A new administrator overseeing licenses for DVDs and DVD players will lower patent royalties for companies including Sony Corp., Pioneer and LG Electronics.

Created in 2011 by Koninklijke Philips Electronics N.V., Sony Corp. and Pioneer Corp., One-Red LLC is based in Sunnyvale, Calif., and also administers patent licensing programs for CD and Blu-ray Disc products.

Starting July 1, One-Red began offering a new DVD license for all LG, Philips, Pioneer and Sony patents related to DVD Video and ROM, and CD-Audio and ROM technologies.

“One-Red knows that patent royalties help fuel industry innovation and is focused on helping its licensors and licensees continue to evolve, grow and innovate,” said One-Red CEO Susumu Aoyagi. “To do so, we are committed to supporting our stakeholders by encouraging a level playing field through innovative technologies such as per-batch licensing and the deployment of strict enforcement policies.”

Companies that enter into new DVD patent licensing agreements with One-Red are looking at the following royalty rates:

DVD Video Player: Standard $3.60, Compliant $2.80

DVD-ROM Player: Standard $2.91, Compliant $2.24

DVD Discs: Standard 4 cents, Compliant 3 cents

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