First Meeting of HD DVD Patent Holders Held



    Initial Group of 16 Makes Progress in Effort to Create Joint Patent
License

    CHEVY CHASE, MD., October 4 /CNW/ - MPEG LA announced today that the
first meeting of essential HD DVD patent owners, currently consisting of 16
companies, was held in Los Angeles on September 11 for the purpose of creating
a joint license providing fair, reasonable, non-discriminatory access to
essential patents, as an alternative to negotiating separate licenses. Initial
participating companies include LG Electronics Inc.; Microsoft Corporation;
Mitsubishi Electric Corporation; NEC Corporation; Samsung Electronics Co.,
Ltd.; SANYO Electric Co., Ltd.; Sonic Solutions; TDK Corporation; Thomson
Licensing; Toshiba Corporation; Victor Company of Japan, Ltd.(JVC); and Warner
Bros. Home Entertainment Inc.

    "MPEG LA applauds the extraordinary cooperation of so many diverse
companies working together to come up with an efficient way for users of the
multitude of patents employed in HD DVD devices, discs and related
implementations to address their licensing needs," said MPEG LA CEO Larry
Horn. "And the substantial progress made in this initial meeting bodes well
for achieving it."

    MPEG LA, on behalf of essential patent owners, welcomes the input and
views of interested parties, including potential licensees, in all related
industry sectors. The objective is for the license to reflect both relevant
conditions in the marketplace and the value of the licensed technology in
order to strike a balance between patent users' interest in reasonable access
to this advanced optical disc technology and patent holders' interest in a
reasonable return on their research and development investment that enables a
joint license to be offered for the convenience of the marketplace as an
alternative to negotiating separate licenses.

    Additional patent holder meetings are planned, and work on the joint
license will continue. MPEG LA welcomes any party that believes it has patents
which are essential to the HD DVD standard to submit them for evaluation of
their essentiality by MPEG LA's patent evaluators and participate in the joint
license creation process if determined to be essential. Further information,
along with terms and procedures governing patent submissions, can be found at
http://www.mpegla.com/pid/hddvd/. While only issued patents that are essential
to the HD DVD standard will be included in the license, in order to
participate in the license development process, patent applications with
claims that their owners believe are essential to the HD DVD standard and
likely to issue in a patent also may be submitted for an evaluation of
essentiality.

    MPEG LA, LLC

    MPEG LA is the world leader in alternative technology licenses, enabling
users to acquire worldwide patent rights necessary for a technology standard
or platform from multiple patent owners in a single transaction as an
alternative to negotiating individual licenses. Wherever an independently
administered one-stop patent license would provide a convenient marketplace
alternative to assist users with implementation of their technology choices,
the licensing model pioneered and employed by MPEG LA may provide a solution.
By balancing patent users' interest in reasonable access with patent owners'
interest in reasonable return, MPEG LA creates the opportunity for adoption of
new technologies and fuels innovation. MPEG LA's initial licensing program for
MPEG-2 digital video compression helped produce the most widely employed
standard in consumer electronics history, and the MPEG LA(R) Licensing Model
has become the template for addressing other technologies. Today MPEG LA
manages licensing programs consisting of essential patents in 57 countries.
MPEG LA is an independent licensing administrator; it is not related to any
standards agency and is not an affiliate of any patent holder. For more
information, please refer to http://www.mpegla.com.




For further information:

For further information: MPEG LA, LLC Tom O'Reilly, 860-620-0642 Fax:
301-986-8575 toreilly@mpegla.com

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MPEG LA, LLC

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