Blu-ray Patent Licensing Program Announced by Four Companies

TOKYO — Four leading companies — Mitsubishi Electric Corporation, Thomson Licensing, Toshiba Corporation and Warner Bros. Home Entertainment (collectively, the “BD4C Licensing Group”) — today announced that they have commenced a worldwide joint licensing program beginning on March 1, 2010 for Blu-ray (“BD”) and DVD patents essential for BD decoders, BD encoders, BD players, BD read-only discs, BD recordable discs, BD drives, BD/DVD hybrid discs and BD recorders (“BD Products”), including BD Products that incorporate DVD functionality.

The potential licensees will benefit from one-stop shopping for the essential patents owned or controlled by the four companies, which will facilitate the development of the BD market.

The license portfolio consists of BD and DVD patents, owned or controlled by the four companies, that are essential for BD Products. Licenses for the portfolio will be available for products that comply with the specifications for the BD formats promulgated by the Blu-ray Disc Association.

Interested parties are also free to negotiate separate license agreements, rather than taking a single portfolio license, with each of the four companies, which have committed to provide such licenses for their respective essential patents under fair, reasonable and nondiscriminatory terms and conditions.

The companies have authorized Toshiba to act as licensor for the BD4C Licensing Group in licensing their essential BD patents for this joint licensing program.

Royalties under the terms of the portfolio license will be as follows:

Category                         Royalty
--------                         -------
BD-Video Disc                    US$0.04 per disc
BD-ROM Disc                      US$0.04 per disc
BD-R Disc                        US$0.065 per disc
BD-RE Disc                       US$0.09 per disc
BD/DVD Hybrid Disc (including
 BD/DVD Hybrid ROM Discs and
 BD/DVD Hybrid Video Discs)      US$0.08 per disc
BD Decoder                       US$1.00 per decoder,
                                  with an annual cap of US$10,000,000
BD Encoder                       US$1.50 per encoder,
                                  with an annual cap of US$15,000,000
BD-Video Player                  US$4.50 per player
BD-Video Combo Player            US$6.00 per player
BD Video Recorder                US$7.00 per recorder
BD-Video Combo Recorder          US$6.00 per recorder
BD-ROM Drive                     US$4.00 per drive
BD Recordable Disc Drive         US$6.00 per drive
BD-ROM Combo Drive               US$5.00 per drive
BD Combo Recordable Disc Drive   US$5.00 per drive

Please note that the BD4C Licensing Group reserves the right to adjust the rates as necessary to encourage the broad participation in the program by interested companies with essential patents.