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PREMIER BD Lowers Blu-ray Encoder and Decoder Patent Royalties

The PREMIER BD Licensing Group announced that it has reduced the patent royalty rates payable on BD encoders and decoders.

For more information visit: www.premier-bd.com


Unedited press release follows:

PREMIER BD Announces Royalty Reduction for BD Decoders and BD Encoders

July 11, 2016 — The PREMIER BD Licensing Group (PREMIER BD) consisting of six leading developers of BD technology and formats — Disney Enterprises, Inc., Mitsubishi Electric Corporation, The Trustees of Columbia University in the City of New York, Thomson Licensing (S.A.S.), Toshiba Corporation, and Warner Bros. Home Entertainment Inc. — today announced that it has revised its worldwide patent licensing program, which offers the following reduced royalty rates on BD Decoder and BD Encoder, respectively, retroactively applied beginning on and after July 1, 2015,

1. For BD Decoders (without an encoding function), US$1.00 per decoder, with an annual cap of US$10,000,000; provided, however, that with respect to each such decoder sold or otherwise transferred on or after July 1, 2015, the royalty payable per decoder shall be determined in accordance with the number of decoders sold or otherwise transferred during each semiannual period ending June 30 or December 31, as follows (subject to the aforesaid annual cap):

For the first 150,000 decoders sold or otherwise transferred during each such semiannual period, US$1.00 per decoder;

For the next 150,001 through 300,000 decoders sold or otherwise transferred during such semiannual period, US$0.80 per decoder;

For the next 300,001 through 600,000 decoders sold or otherwise transferred during such semiannual period, US$0.64 per decoder;

For each decoder over a total of 600,000 decoders sold or otherwise transferred during such semiannual period, US$0.50 per decoder.

2. For BD Encoders with decoding function, US$1.50 per encoder, with an annual cap of US$15,000,000; provided, however, that with respect to each such encoder sold or otherwise transferred on or after July 1, 2015, the royalty payable per unit shall be reduced to US$1.00 per encoder for each encoder over a total of 250,000 encoders sold or otherwise transferred during each semiannual period ending June 30 or December 31 (subject to the aforesaid annual cap).

3.  For BD Encoders without decoding function, US$1.25 per encoder, with an annual cap of US$15,000,000; provided, however, that with respect to each such encoder sold or otherwise transferred on or after July 1, 2015, the royalty payable per unit shall be reduced to US$1.00 per encoder for each encoder over a total of 250,000 encoders sold or otherwise transferred during each semiannual period ending June 30 or December 31 (subject to the aforesaid annual cap).

For the convenience of current and prospective licensees, the revised rates to be offered are shown below:

Product

Royalty
BD Decoder Sold or otherwise transferred prior to July 1, 2015 US$1.00 per decoder, with an annual cap of US$10,000,000
BD Decoder Sold or otherwise transferred on or after July 1, 2015 (Newly revised) For the first 150,000 decoders sold during each such semiannual period, US$1.00 per decoder; For the next 150,001 through 300,000 decoders sold during such semiannual period, US$0.80 per decoder; For the next 300,001 through 600,000 decoders sold during such semiannual period, US$0.64 per decoder; For each decoder over a total of 600,000 decoders sold during such semiannual period, US$0.50 per decoder. All the above are subject to an annual cap of US$10,000,000
BD Encoder with decoding function Sold or otherwise transferred prior to July 1, 2015 US$1.50 per encoder, with an annual cap of US$15,000,000
BD Encoder with decoding function Sold or otherwise transferred on or after July 1, 2015 (Newly revised) US$1.50 per encoder provided, however, US$1.00 per encoder for each encoder over a total of 250,000 encoders sold during each semiannual period with an annual cap of US$15,000,000
BD Encoder without decoding function Sold or otherwise transferred prior to July 1, 2015 (Newly revised) US$1.25 per encoder, with an annual cap of US$15,000,000
BD Encoder without decoding function Sold or otherwise transferred on or after July 1, 2015 (Newly revised) US$1.25 per encoder, provided, however, US$1.00 per encoder for each encoder over a total of 250,000 encoders sold or otherwise transferred during each semiannual period with an annual cap of US$15,000,000

For further information regarding the PREMIER BD licensing program, please contact one of the regional contacts shown on the PREMIER BD web site (http://www.premier-bd.com/).

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