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MPEG LA reduces MPEG-2 license royalty rates

MPEG LA, LLC, the international one-stop patent licensor, announced the offering of a new MPEG-2 Patent Portfolio License that will provide uninterrupted coverage for the life of the MPEG-2 essential patents at reduced royalty rates beginning 1 January 2010.

From the later of 1 January 2010 or the execution date of the new License, the royalty rate for each MPEG-2 Decoding, Encoding and Consumer Product (as defined in the new License) will be $2.00, down from the current $2.50, and royalties for MPEG-2 Packaged Medium (e.g., DVD Video Discs) will be reduced to $0.0176 during 2010, and $0.016 after 2010.

“MPEG LA and the MPEG-2 Licensors are committed to assuring that our MPEG-2 License continues to be responsive to the needs of our customers and the marketplace, and the new MPEG-2 License provides further affirmation of that objective,” said Larry Horn, MPEG LA President and CEO.

Story filed 14.07.09

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