Archive notice: This article was originally published on February 28, 2009. Links and embedded videos are preserved as part of the historical record.
Electronics companies Panasonic, Philips and Sony have agreed on a new licensing model intended to make Blu-ray products cheaper in the future. Each of the three corporations holds separate licensing rights to parts of Blu-ray technology. Until now, a third-party company wishing to license the technology in full has had to negotiate separately with each partner. The rights holders now want to simplify this by founding a joint company that will manage and market all licensing rights.
According to the companies, from the middle of this year manufacturers of playback devices will be able to obtain a license covering all patents for playing or recording Blu-ray media, DVDs and CDs. This is expected to generate cost savings of at least 40 percent. The license fee for producing a Blu-ray player will be around €7.45, while a Blu-ray burner will incur a fee of €11. The license holders will charge €0.08 for the manufacture of a Blu-ray disc, €0.09 for a recordable medium and €0.12 for a rewritable one.
The new licensing model is intended to promote the spread of Blu-ray technology. According to Gerald Rosenthal, the future head of the licensing administrator, the aim is to create a “one-stop shop” that will significantly simplify licensing and thereby give Blu-ray another boost. A further advantage of centralized rights management is that illegally manufactured devices can be identified and removed from circulation more easily. Blu-ray is currently struggling for customer acceptance because of its high purchase prices. The cheapest players currently cost at least €155. Buyers still have to pay almost €8 for a recordable Blu-ray disc.
