Feeds

China sends DVD royalties South

We've got our own format, thanks

  • alert
  • submit to reddit

In an attempt to woo China back into the fold, the group of manufacturers responsible for setting royalties on DVD discs and equipment has slashed the rates that licensees must pay.

DVD6C, which represents five Japanese manufacturers plus Warner Home Video and IBM, has cut the royalty rate for DVD players and drives by 25 per cent - from $4 to $3 - and the per disc rate by 10 per cent, from 5 cents to 4.5 cents. The rate payable on DVD recordable discs, DVD-R, DVD-RW and DVD-RAM, has also been cut, from 7.5 cents to 6.5 cents. The new rates will apply retroactively from January 1.

Last week China formally adopted its home-grown EVD video disc format as the national standard. EVD means no royalties need be paid to the DVD licensing bodies, and it has the added bonus of playing HD-TV images too. Chinese manufacturer Wuxi is suing the 3C and 6C licensing groups claiming that they're discriminating against Chinese manufacturers, and the suit seeks to rule the DVD patent pool invalid. 3C consists of Sony, Philips and Pioneer, while 6C represents Matsushita, JVC, Toshiba, Hitachi and Mitsubishi, in addition to IBM and Warner.

However if Hollywood retaliates - and in turn shuns the Chinese market - it could turn an obscure economic issue into a cultural schism which deprives the PRC of many of the US' finest artistic exports: such as Weekend at Bernie's 2, Christmas With The Kranks and Bum Fight. ®

Related stories

China favours EVD over DVD
Chinese manufacturers sue DVD patent pool
China unveils ‘DVD killer’ video disk format

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.