MPEG LA Reduces MPEG-2 Royalty Rates

New MPEG LA MPEG-2 License Agreement Offers Extended Coverage at Reduced Royalty Rates

DENVER, CO, US — MPEG LA, LLC, world leader in alternative one-stop patent licenses, today announced the offering of a new MPEG-2 Patent Portfolio License that will provide uninterrupted coverage for the life of the MPEG-2 essential patents at reduced royalty rates beginning January 1, 2010.

“MPEG LA and the MPEG-2 Licensors are committed to assuring that our MPEG-2 License continues to be responsive to the needs of our customers and the marketplace, and the new MPEG-2 License provides further affirmation of that objective,” said Larry Horn, MPEG LA President and CEO.

From the later of January 1, 2010 or the execution date of the new License, the royalty rate for each MPEG-2 Decoding, Encoding and Consumer Product (as defined in the new License) will be US $2.00, down from the current $2.50, and royalties for MPEG-2 Packaged Medium (e.g., DVD Video Discs) will be reduced to US$0.0176 during 2010, and US$0.016 after 2010.