NEWS RELEASE

For Immediate Release
CONTACT:
Lawrence Horn
MPEG LA, LLC
301.986.6660
301.986.8575 Fax
lhorn@mpegla.com

MPEG LA Announces Terms of Joint H.264/MPEG-4 AVC Patent License

(Denver, Colorado, USA - 17 November 2003)  MPEG LA today announced that essential H.264/MPEG-4 AVC patent and patent application holders have reached agreement on the terms of a joint patent license for implementation and use of ITU-T H.264 and MPEG-4 Part 10 AVC (“AVC Standard”).

“For essential intellectual property holders of such wide diversity to agree on the terms of a joint license in just a matter of months is a remarkable achievement, giving testimony to their support for the AVC standard and their desire to make this promising new technology widely available to the market in the fastest time possible,” said MPEG LA CEO Baryn S. Futa.  “MPEG LA congratulates each of them for their extraordinary diligence and cooperation, despite differences, in coming together for the benefit of the marketplace.  We also thank potential users across all market sectors for their forthrightness in sharing with us their concern for licensing terms that are simple, reasonable and easy to administer.  This helped immensely in the group’s efforts to make the license terms responsive to marketplace needs.”

Following is a brief summary of the licensing terms, which are yet to be incorporated into definitive license agreements and therefore, provided for information purposes only.  These terms cover the entire AVC Standard regardless of which Profile(s) are used:

Decoder-Encoder Royalties

Participation Fees

Owners of patents or patent applications determined by MPEG LA’s patent experts to be essential to the AVC Standard and who have cooperated in the above terms include Columbia University, Electronics and Telecommunications Research Institute of Korea (ETRI), France Télécom, Fujitsu, LG Electronics, Matsushita, Mitsubishi, Microsoft, Motorola, Nokia, Philips, Robert Bosch GmbH, Samsung, Sharp, Sony, Toshiba, and Victor Company of Japan (JVC).

MPEG LA continues to welcome the submission of patents and patent applications for an evaluation of their essentiality to the AVC Standard in order to include as much essential intellectual property as possible under one license for the benefit of the marketplace (only issued patents will be included in the License).  For each patent or patent application submitted, an evaluation fee of US $8,500.00 to cover the outside cost of the patent expert’s evaluation is paid to MPEG LA.  Additional fees may be required to cover additional outside costs in the event of reevaluation by patent experts.  Submitting parties must confirm their agreement with the terms and procedures governing the patent submission process which may be obtained from Jane Tannenbaum, Director, Contract Administration (jtannenbaum@mpegla.com).

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MPEG LA, LLC

MPEG LA successfully pioneered one-stop technology standards licensing with a portfolio of essential patents for the international digital video compression standard known as MPEG-2.  One-stop technology standards licensing enables widespread technological implementation, interoperability and use of fundamental broad-based technologies covered by many patents owned by many patent holders. MPEG LA provides users with fair, reasonable, nondiscriminatory access to these essential patents on a worldwide basis under a single license.  MPEG LA is an independent licensing administrator; it is not a patent holder and is not related to any standards agency.  In addition to MPEG-2, MPEG LA licenses portfolios of essential patents for the IEEE 1394 Standard, the DVB-T Standard, the MPEG-4 Visual Standard and the MPEG-4 Systems Standard.  MPEG LA also has initiated a license for digital rights management (DRM) technologies as described in DRM Reference Model v1.0.  For more information, please refer to http://www.mpegla.com, http://www.1394la.com and http://www.dvbla.com.