Panasonic, Sony & Philips to Create Individual Blu-Ray License
Sony, Philips, and Panasonic are joining together to create a less expensive and simpler licensing process for companies that wish to make Blu-ray devices.
A new license will be established by the middle of 2009 as a ‘one-stop shop’ for device makers. The license will include all necessary Blu-ray, DVD, and CD patents for selling Blu-ray players.
The licensing program will be handled by a new licensing company to be led by Gerald Rosenthal, former head of intellectual property at IBM. It will be based in the U.S., but will have local branches in Asia, Europe, and Latin America.
Instead of having to approach Blu-ray, DVD, and CD holders individually and paying them separate royalties; the single license should reduce the total cost of royalty payments by 40%, according to Sony.
The fees for the new licenses will be $9.50 for a Blu-ray player, and $14 for a Blu-ray recorder.
The idea for a one-stop shop for Blu-ray has been floating around since a 2007 meeting of the 18 companies that hold Blu-ray patents. Licensing fees can be extremely lucrative for disc format patent holders: several years ago license fees for making a DVD player cost between $15 and $20.
This one-stop shop will help avoid the headache DVD licenses created. To make a DVD player or disc, manufacturers have had to ink deals with three separate organisations that represented various patent holders.
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