MPEG LA

January 06, 2005 00:05 ET

MPEG LA Announces OMA DRM Patent License Terms


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MPEG LA

JANUARY 6, 2005 - 00:05 ET

MPEG LA Announces OMA DRM Patent License Terms

DENVER--(CCNMatthews - Jan 6, 2005) -

MPEG LA announced today that an initial group of essential patent
holders including ContentGuard Holdings, Inc., Intertrust Technologies
Corp., Matsushita Electric Industrial Co., Ltd., Koninklijke Philips
Electronics N.V. and Sony Corporation have reached tentative agreement
on the terms of a joint patent portfolio license to be offered by MPEG
LA for use of the Open Mobile Alliance (OMA) DRM 1.0 specification. The
companies were convened in response to MPEG LA's call for essential
patents (http://www.mpegla.com/news/n_04-07-20_drm.pdf). The proposed
OMA DRM Patent Portfolio License is expected to cover products that use
the OMA DRM 1.0 specification, as well as those which use both OMA DRM
1.0 and 2.0.

Digital rights management technology (DRM) has broad application for the
protection and management of digital information; it is key to the
success of electronic media distribution systems now gaining popularity
on computers, mobile and consumer electronics platforms. The patent
license is the first in a series of marketplace initiatives arising out
of MPEG LA's DRM Reference Model (http://www.mpegla.com/pid/drm/) that
will enable a wide variety of innovative new products and services based
on DRM whose development and deployment might otherwise be inhibited.

"This breakthrough in providing efficient access to key DRM patents
would not be possible without the hard work and foresight of these DRM
market leaders," said MPEG LA CEO Baryn S. Futa. "Thanks to them, the
market may expect the timely availability of a license consisting of
their essential patents to enable the rapid development and deployment
of DRM products and services for the mobile marketplace. Everyone in the
product chain -- content owners, service providers, device manufacturers
and especially consumers -- will benefit from this growth opportunity.
MPEG LA is proud to play a supporting role in making this important
technology widely accessible."

Under the proposed License, royalty rates for patents essential to OMA
DRM 1.0 in connection with products that have OMA DRM 1.0 functionality
or OMA DRM 1.0 and OMA DRM 2.0 functionality would be (a) US$1.00 per
device (payable by the party that offers the device to an end user) and
(b) 1% of any transaction in which an end user pays for delivery of a
digital asset employing OMA 1.0 (payable by the service provider). OMA
DRM 2.0 essential patents may be added as a result of a pending call
issued by MPEG LA on 23 September 2004
(http://www.mpegla.com/news/n_04-09-23_drm.pdf).

The proposed License would provide coverage for products from January 1,
2004, but royalties will be payable only on products from January 1,
2005, forward.

MPEG LA plans for an actual license agreement to issue by March 2005.

MPEG LA, LLC

MPEG LA is the world leader in one-stop technology platform patent
licenses, enabling users to acquire patent rights necessary for a
particular technology standard or platform from multiple patent holders
in a single transaction as an alternative to negotiating a license with
each of them. Wherever an independently administered one-stop patent
license would provide a convenient marketplace alternative to assist
users with implementation of their technology choices, the licensing
model pioneered and employed by MPEG LA may provide a solution. MPEG LA
is not related to any standards agency and is not an affiliate of any
patent holder. MPEG LA licenses portfolios of essential patents for the
MPEG-2, IEEE 1394, DVB-T, MPEG-4 Visual (Part 2), MPEG-4 Systems and
AVC/H.264 (also known as MPEG-4 Part 10) standards. MPEG LA is also
facilitating the development of alternative patent portfolio licenses
relating to DRM Reference Model v 3.0, the proposed SMPTE VC-1 standard,
the ATSC standard, and the DVB-H standard. In addition, MPEG LA actively
seeks to adopt its alternative patent licensing model in other
industries including biotech and pharmaceutical. For more information,
please refer to www.mpegla.com.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    MPEG LA
    Lawrence Horn, 301-986-6660
    lhorn@mpegla.com
    301-986-8575 (FAX)