China Internet Information Center:
The franchise issue that once ensnared Chinese DVD producers may once again undermine the country’s High Definition (HD) industry, reported China Business News on February 26.
This newspaper has learnt from Sony that the company, along with Panasonic and Philips, are currently in discussion with other patent holders on the subject of creating a one-stop Blu-Ray franchise license. The license, to be activated later this year, will cover the basic patents for Blu-Ray, DVD and CD. However, for the time being no Chinese holder of any Blu-Ray patent or other intellectual property is part of the new association.
The upcoming franchise demands US$9.50 for each Blu-Ray disk player and US$14 for each burner; while for the disks, US$0.11 will be payable on each Blu-Ray CD-ROM, US$0.12 on CD-R, and US$0.15 on each CD-RW to be produced.
A new company will be established to manage and operate the franchise with headquarters in the US and branches in Asia, Europe and Latin America. The three giants, Sony, Panasonic and Philips, agree that this one-stop product franchise is designed to promote and protect the global Blu-Ray market. Any company or individual holding a basic patent in Blu-Ray, DVD or CD will be invited to join the company both as a patent franchiser and a company shareholder.