The DVD6C Licensing Group (DVD6C) announced Friday that the minimum royalty for DVD-R discs for eligible licensees will be reduced to 4.5 US cents per disc.

The DVD6C Licensing Group is an industry body consisting of eight developers of DVD technology and formats – Hitachi, Panasonic, Mitsubishi, Sanyo, Sharp, Toshiba, JVC and Warner Home Video.

The reduction applies to discs sold on or after 1 January 2006 for companies that enter into a DVD6C category license.

The DVD6C's patent minimum royalty for DVD-R discs is 7.5 US cents per disc sold on or before 31 December 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 1 January 2005, and the new minimum royalty will be 4.5 US cents per disc sold on or after 1 January 2006.

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

Story filed 03.04.06