News

How much does it cost to license DVD-Audio patents to create players or discs? That information was revealed last week when the DVD6C Licensing Agency, which represents the founders of the DVD Forum (formerly called the DVD Consortium) in the area of patent licensing, announced that it expects to start global licensing of essential patents for DVD-Audio and recordable DVD products on or about January 1, 2003.

DVD6C—which currently represents AOL Time Warner, Hitachi, IBM, Matsushita, Mitsubishi, Toshiba, and Victor Company of Japan (JVC)—notes that licenses will cover both drives and media, including DVD-Audio, DVD-RAM, DVD-RW, and DVD-R. The agency points out that other DVD licenses may be needed from Philips, Pioneer, and Sony, whom it does not represent.

DVD6C claims its license portfolio for recordable DVDs has gathered together essential patents owned by its member companies, providing "one-stop shopping for key intellectual properties" that can be applied to products complying with DVD format specifications as defined by the DVD Forum.

Interested parties are also free to negotiate separate license agreements with any seven member companies, rather than taking out a single portfolio license. The members say they have committed to provide such licenses for their patents under fair, reasonable, and non-discriminatory terms and conditions.

For those interested in a peek behind the licensing curtain, royalty fees under this program are 4% of the net selling price of the DVD-Audio player or US$4, whichever is greater. The same fees would also cover DVD-V players, DVD-ROM drive, DVD multiplayers or any combination of the above DVD formats. For DVD-A media, the license fee is 7.5¢ per disc.