Toshiba Corporation

Toshiba Corporation

March 31, 2006 01:00 ET

DVD6C Announces Limited-Time Offer for Royalty Reduction for DVD-R Disc License

TOKYO--(CCNMatthews - Mar 31, 2006) -

The DVD6C Licensing Group (DVD6C), the industry body consisting of eight leading developers of DVD technology and formats -- Hitachi, Ltd., Matsushita Electric Industrial Co., Ltd. (Panasonic), Mitsubishi Electric Corporation, Sanyo Electric Co., Ltd., Sharp Corporation, Toshiba Corporation, Victor Company of Japan, Ltd. (JVC) and Warner Home Video Inc. -- today announced that the minimum royalty for DVD-R Discs for eligible licensees will be reduced to 4.5 US cents per disc sold on or after January 1, 2006 for companies that enter into a DVD6C category license, and it has provided an incentive for manufacturers of DVD-R Discs to become licensed under the DVD6C DVD-R Disc patents on or before May 31, 2006.

The DVD6C's patent minimum royalty for DVD-R Discs is 7.5 US cents per disc sold on or before December 31, 2004, 6.5 US cents per disc sold on or after an effective date of a category license, for licensees who signed the category license agreement on or after January 1, 2005, and the new minimum royalty will be 4.5 US cents per disc sold on or after January 1, 2006.

Under the incentive program, for the companies that enter into the category license to cover DVD-R Disc patents on or before May 31, 2006, the new minimum royalty for DVD-R Discs will be made retroactive to past sales on or after January 1, 2004.

Current licensees that have previously entered into the category license will also benefit from this incentive program. The licensees that have already paid royalties under a category license will be entitled to receive a credit against future royalties.

Interested parties will remain free to negotiate individual license agreements with DVD6C's member companies, rather than taking licenses from DVD6C. The member companies have committed to provide such licenses under fair, reasonable and non-discriminatory terms and conditions.

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