One-Red Unveils Lower Patent Licenses for DVD and CD

By · Monday, July 30th, 2012

One-Red Unveils Lower Patent Licenses for DVD & CDEffective July 1, 2012, electronic giants Sony, LG, Pioneer and Philips will jointly oversee the licensing processes of optical disc and optical disk players through One-Red. This joint venture by the companies will be useful for the optical storage brand owners and manufactures as they can now use CD-ROM and CD-Audio technologies as well as DVD-ROM and DVD-Video technologies with lower patent royalties than before. Susumu Aoyagi, One-Red CEO, said that patent royalties quicken business innovation and helps both the licensees and licensor to ‘evolve, grow and innovate’.

The official statement states that “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”).”

What is One-Red?

One-Red is the company that looks over the patent licensing of Compact Discs, Digital Versatile Discs, Blu-Ray Discs and other optical storage products. One-Red is also involved in the management of patent licensing for other computing technologies. One-Red LLC is based out of Sunnyvale, California and has its offices spread out around the globe. There are 15 offices worldwide in as much as thirteen countries and a trained workforce that usually includes people from the optical licensing division of Philips. One-Red was formed in 2011 together by electronic giants Sony Corporation, Pioneer Corporation, LG Electronics Inc., and Koninklijke Philips Electronics N.V.

New Strategy for Licensing Patents

The One-Red patent licensing program has a different approach instead of giving licenses to manufacturers, shipments of the products will be licensed. The ‘per-batch’ licensing policy will track the shipments of CDs and DVDs thus eliminating chances of the distribution of products with improper licenses. The process of enforcing, managing, and monetizing patent licenses has subsequently been systematized through strict enforcement methods.

Licensing Rates

The joint company of the quartet will grant licenses for use of the patents related to optical storage technology at a lower loyalty than any other patent licensing programs. In addition to this, a limited time offer will allow for additional discounts in the use of these patents for current and new manufacturers. The joint DVD Prerecorded Disc and DVD Player patents that include CD technologies will be rolled out to deserving applications without favor. Any patent owner included in the joint DVD licensing program of One-Red is allowed to give out separate licenses for the same patent.

The One-Red royalty rates are given below (read technology, standard rate, compliant rate):

  • DVD video player, $3.60, $2.80
  • DVD-ROM player, $2.91, $2.24
  • DVD discs, $0.04, $0.03

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