DVD6C Announces Royalty Reduction for DVD Decoder and DVD Encoder

Thursday September 4 4:00 PM

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.

Interested parties will remain free to negotiate individual license agreements with DVD6C's member companies, rather than taking out a single portfolio license or license for a category of products. The member companies have committed to provide such licenses under fair, reasonable and non-discriminatory terms and conditions.

For the convenience of current and prospective licensees, the royalty rates to be offered under the new DVD6C License are shown below:

Category            Royalty
----------------------------------------------------------------------
DVD Decoder         The greater of
(Newly revised)     (i) 4% of the net selling price or
                    (ii) US$1.00 per decoder
                    US$0.50 per decoder on or after the effective date
                     of the New DVD6C License
----------------------------------------------------------------------
DVD Encoder         The greater of
(Newly revised)     (i) 4% of the net selling price or
                    (ii) US$1.50 per encoder
                    US$0.75 per encoder on or after the effective date
                     of the New DVD6C License
----------------------------------------------------------------------
DVD-Video Player    The greater of
                    (i) 4% of the net selling price or
                    (ii) US$4.00 per player or,
                    US$3.00 per player on or after the effective date
                     of the New DVD6C License
                    US$8.00 at maximum on or after January 1, 2003
----------------------------------------------------------------------
DVD-Audio Player    The greater of
                    (i) 4% of the net selling price or
                    (ii) US$4.00 per player or,
                    US$3.00 per player on or after the effective date
                     of the New DVD6C License
                    US$8.00 at maximum on or after January 1, 2003
----------------------------------------------------------------------
DVD-ROM Drive       The greater of
                    (i) 4% of the net selling price or
                    (ii) US$4.00 per drive or,
                    US$3.00 per drive on or after the effective date
                     of the New DVD6C License
                    US$8.00 at maximum on or after January 1, 2003
----------------------------------------------------------------------
DVD-ROM Disc        US$0.075 per disc;
                    US$0.065 per disc on or after January 1, 2002;
                    US$0.05 per disc on or after January 1, 2004;
                    US$0.040 per disc on or after the effective date
                     of the New DVD6C License
----------------------------------------------------------------------
DVD-Video Disc      US$0.075 per disc;
                    US$0.065 per disc on or after January 1, 2002;
                    US$0.05 per disc on or after January 1, 2004;
                    US$0.040 per disc on or after the effective date
                     of the New DVD6C License
----------------------------------------------------------------------
DVD-Audio Disc      US$0.075 per disc;
                    US$0.05 per disc on or after January 1, 2004;
                    US$0.040 per disc on or after the effective date
                     of the New DVD6C License
----------------------------------------------------------------------
DVD Video Recorder  The greater of
                    (i) 4% of the net selling price or
                    (ii) US$6.00 per recorder
----------------------------------------------------------------------
DVD (Recordable     The greater of
 Disc) Drive        (i) 4% of the net selling price or
                    (ii) US$6.00 per drive
----------------------------------------------------------------------
DVD-R Disc          The greater of
                    (i) 4% of the net selling price or
                    (ii) US$0.075 per disc;
                    US$0.045 per disc on or after January 1, 2006
----------------------------------------------------------------------
DVD-RW Disc         The greater of
                    (i) 4% of the net selling price or
                    (ii) US$0.075 per disc or,
                    US$0.065 per disc on or after the effective date
                     of the New DVD6C License
----------------------------------------------------------------------
DVD-RAM Disc        The greater of
                    (i) 4% of the net selling price or
                    (ii) US$0.075 per disc or,
                    US$0.065 per disc on or after the effective date
                     of the New DVD6C License
----------------------------------------------------------------------
DVD Recordable      The greater of
 Disc Case          (i) 4% of the net selling price or
                    (ii) 0.5 US cents per case
----------------------------------------------------------------------
+R Disc             The greater of
                    (i) 4% of the net selling price or
                    (ii) US$0.075 per disc, or
                    US$0.045 per disc on or after January 1, 2006
----------------------------------------------------------------------
+RW Disc            The greater of
                    (i) 4% of the net selling price or
                    (ii) US$0.075 per disc or,
                    US$0.065 per disc on or after the effective date
                     of the New DVD6C License
----------------------------------------------------------------------

For further information regarding the DVD6C licensing program, please visit the 6C web site (www.dvd6cla.com) or contact one of the following regional agents:

Japan:
Toshihiro Shinohara
Vice-President & 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: 6C.JP@toshiba-tdls.co.jp

Europe and Africa:
Shunsuke Nonami
Vice-President & General Manager
Toshiba of Europe Limited
Santander House
6th Floor, 100 Ludgate Hill,
London, EC4M 7RE
United Kingdom
Phone: +44(0)20 7332 9862
Fax: +44(0)20 7332 9889
E-mail: 6C.EU@toshiba-tdls.co.jp

Asia (excluding Japan), Oceania and the Middle East:
Shigeru Komatsu
Department Manager
DVD Licensing Center
Hitachi Ltd.
292 Yoshida-cho, Totsuka-ku,
Yokohama, 244-0817, Japan
Phone: +81-45-415-2135
Fax: +81-45-866-5824
E-Mail: dli-inquiry@itg.hitachi.co.jp

The Americas:
Tatsuya Ii
Matsushita Electric Industrial Co., Ltd.
Exclusive Regional Agent for DVD6C 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: dvd6c@gg.jp.panasonic.com

Contact:

Toshiba Corporation
Yuko Sugahara, +81-3-3457-2105
Corporate Communications Office
Fax: +81-3-5444-9202
http://www.toshiba.co.jp/contact/media.htm

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