Consumer Electronics Multinationals Lower Patent Royalty Rates for DVD and CD Technologies

Beginning July 1, 2012, One-Red LLC (“One-Red”) will become the authorized entity to administer a new joint DVD Disc and DVD Player license program on behalf of its licensors, which include Koninklijke Philips Electronics N.V. (“Philips”), Sony Corporation (“Sony”), Pioneer Corporation (“Pioneer”) and LG Electronics, Inc. (“LG”).

Today’s announcement means that optical storage manufacturers and brand owners will now be able to benefit from lower patent royalty rates by licensing through One-Red.

As the new licensing authority owned by Philips, Sony and Pioneer, One-Red delivers the following benefits to its stakeholders:

Essential Patent Licensing: Beginning July 1, 2012, One-Red will offer a new DVD license for all essential patents of LG, Philips, Pioneer and Sony that are related to DVD Video and ROM and CD-Audio and ROM technologies.

Expertise in Administering and Managing Patent Portfolios: One-Red’s employees – most of whom previously worked for Philips’ optical storage licensing unit – have years of experience managing patent licensing programs, including joint programs. By leveraging this expertise, One-Red is positioned to manage and administer patent licensing programs for other technologies.

Unique Licensing Solution: The new One-Red DVD program offers a “per-batch license,” which means that shipments of products, rather than manufacturers, are licensed. This allows licensees to better track shipments of their products and prevents improperly licensed products from entering the marketplace.

Customer-focused on Licensees: With 15 offices in 13 jurisdictions worldwide, One-Red provides licensees with one-on-one customer support and innovative technology to efficiently deploy their licensed products to market.

Streamlined Experience for Licensors: One-Red enforces, manages and monetizes the patent portfolios of its licensors.

Lower Licensing Rates to Encourage Industry Innovation: One-Red is offering a program with lower royalty rates than similar or existing programs for the use of these patents and will offer a limited-time early-bird discount to encourage current and potential licensees to participate in the new One-Red joint DVD program.

“One-Red knows that patent royalties help fuel industry innovation and is focused on helping its licensors and licensees continue to evolve, grow and innovate,” said Susumu Aoyagi, Chief Executive Officer of One-Red. “To do so, we are committed to supporting our stakeholders by encouraging a level playing field through innovative technologies such as per-batch licensing and the deployment of strict enforcement policies.”

The new program for DVD Discs covers essential patents of DVD Video and ROM technologies while the program for DVD players also includes essential patents related to Compact Disc Audio and ROM technologies. A list of DVD Prerecorded Disc patents may be found at http://www.one-red.com/license-program/jointdvddisc.html and DVD Player patents may be found at http://www.one-red.com/license-program/jointdvdplayer.html. The new joint DVD licenses are being offered on reasonable and non-discriminatory terms and conditions. Each patent owner whose patents are included in the new One-Red joint DVD license program are also willing to make available separate licenses under these same patents (“Company Only Licenses”).

Brand manufacturers and brand owners that enter into the new DVD patent licensing agreements with One-Red will benefit from the following royalty rates:

About One-Red LLC

Based in Sunnyvale, CA with offices in thirteen countries, One-Red administers patent licensing programs for optical storage products including Compact Discs (CD), Digital Versatile Discs (DVD) and Blu-Ray Disc (BD) products. In addition, One-Red is positioned to manage and administer patent licensing programs for other technologies. One-Red was created in 2011 by Koninklijke Philips Electronics N.V., Sony Corporation and Pioneer Corporation. For more information please visit www.one-red.com.