One-Red, a licensing company established in 2011 by some big name companies (Sony, Philips, Pioneer, and LG), announced that it has developed a new licensing program that targets software and PC manufacturers in relation to the DVD format and the licensing of products developed for the format by various companies. One-Red’s new licensing program has been available since October 15th of this year, serving as an improvement of its function as a licensing company that busies itself with joint DVD patent licensing.
One-Red’s main function is to offer patent licenses on behalf of the big name companies that established it when concerning DVD products and involved third parties. The new licensing program that the company introduced just this last October has two different agreements on offer. There’s a DVD-software license agreement that only applies to DVDs in conjunction with software. Then there’s a DVD-PC license agreement that concerns itself with DVD-software that comes already installed in PCs.
The separation of these two agreements means a difference in royalty rates, dependent on the relationship between DVD products and specific third parties. For DVD software manufacturers, the royalty rates are (quoted as standard rates) $0.85 for DVD playback software, $1.35 for DVD combi software, and $1.95 for DVD recorder software. For DVD-PC manufacturers, the rates are (again in standard rates) $0.595 for PCs with pre-installed DVD software with or without a DVD playback drive, $0.945 for PCs with pre-installed DVD software and a DVD combi drive, and $1.365 for PCs with pre-installed DVD software and a DVD recorder drive.
One-Red has implemented this new licensing program in order to ensure that the products of DVD-software manufacturers and DVD-PC manufacturers are not going against the patent rights handled by One-Red in its licensing procedures. Market demand can sometimes blur the lines when it comes to patent rights; this is one way for One-Red to ensure proper recognition among the involved parties. The main goal highlighted by One-Red’s CEO Susumu Aoyagi is to create a playing field in which all manufacturers have an equal chance at meeting the need for the patent of specific DVD technologies.