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[6.1] Who invented DVD and who owns it? Whom
to contact for specifications and licensing?
DVD is the work of many companies and many people.
DVD evolved from CD and related technologies. Some of the early
proposals for "high-density CD" were made in 1993, and these efforts
gradually coalesced into two competing proposed formats. The MMCD
format was backed by Sony, Philips, and others. The SD format was
backed by Toshiba, Matsushita, Time Warner, and others. A group
of computer companies led by IBM insisted that the factions agree
on a single standard. The combined DVD format was announced in September
of 1995, avoiding a confusing and costly repeat of the VHS vs. Betamax
videotape battle or the quadraphonic sound battle of the 1970s.
No single company "owns" DVD. The official specification
was developed by a consortium of ten companies: Hitachi, JVC, Matsushita,
Mitsubishi, Philips, Pioneer, Sony, Thomson, Time Warner, and Toshiba.
Representatives from many other companies also contributed in various
working groups. In May 1997, the DVD Consortium was replaced by
the DVD Forum, which is open
to all companies, and as of February 2000 had over 220 members.
Time Warner originally trademarked the DVD logo, and has since assigned
it to the DVD Format/Logo Licensing Corporation (DVD FLLC). The
written term "DVD" is too common to be trademarked or owned. See
section 6.2 and visit Robert's DVD Info page for links to Web sites of
companies working with DVD.
The official DVD specification books are available
after signing a nondisclosure agreement and paying a $5,000 fee.
One book is included in the initial fee; additional books are $500
each. Manufacture of DVD products and use of the DVD logo for non-promotional
purposes requires additional format and logo licenses, for a one-time
fee of $10,000 per format, minus $5,000 if you have already paid
for the specification. (E.g., a DVD-Video player manufacturer must
license DVD-ROM and DVD-Video for $20,000, or $15,000 if they have
the spec.) Contact DVD Format/Logo
Licensing Corporation (DVD FLLC), Shiba Shimizu Building 5F,
Shiba-daimon 2-3-11, Minato-ku, Tokyo 105-0012, tel: +81-3-5777-2881,
fax: +81-3-5777-2882. Before April 14, 2000, logo/format licensing
was administered by Toshiba.
ECMA
has developed international standards for DVD-ROM (part 1, the smallest
part of the DVD spec), available for free download as ECMA-267 and ECMA-268 from http://www.ecma-international.org/.
ECMA has also standardized DVD-R in ECMA-279, DVD-RAM in ECMA-272 and ECMA-273, and DVD+RW as
ECMA-274
(see 4.3). Unfortunately, ECMA has the annoying habit of spelling
"disc" wrong. Also confusing, if you're not from Europe, is ECMA's
use of a comma instead of a period for the decimal point.
The specification for the UDF file system used
by DVD is available from http://www.osta.org/.
Many technical details of the DVD-Video format
are available at the DVD-Video Information page.
Any company making DVD products must license essential
technology patents from the "3C' pool (LG,
Philips, Pioneer, Sony: 3.5% per player/drive, minimum $3.50; additional
$0.75 for Video CD compatibility; 5 cents per disc), the "6C" pool (Hitachi, IBM, Matsushita, Mitsubishi,
Time Warner, Toshiba, Victor: 4% per player/drive, minimum $4; 4%
per "DVD Video decoder", minimum $1; 7.5 cents per disc) and from
Thomson (~$1 per player/drive). Patent royalties may also be owed
to Discovision Associates, which owns about
1300 optical disc patents (usually paid by the replicator).
The licensor of CSS encryption technology is DVD CCA (Copy Control Association), a non-profit
trade association with offices at 225 B Cochrane Circle, Morgan
Hill, CA. There is a $15,000 annual licensing fee, but no per-product
royalties. Send license requests to css-license@lmicp.com, technical info
requests to css-info@lmicp.com.
Before December 15, 1999, CSS licensing was administered on an interim
basis by Matsushita.
Macrovision
licenses its analog anti-recording technology to hardware makers.
There is a $30,000 initial charge, with a $15,000 yearly renewal
fee. The fees support certification of players to ensure widest
compatibility with televisions. There are no royalty charges for
player manufacturers. Macrovision charges a royalty to content publishers
(approximately 4 to 10 cents per disc, compared to 2 to 5 cents
for a VHS tape).
Dolby licenses
Dolby Digital decoders for approximately $0.26 per channel. Philips,
on behalf of CCETT and IRT, also charges $0.20 per channel (maximum
of $0.60 per player) for Dolby Digital patents, along with $0.003
per disc. Dolby also licenses 2-channel Dolby Digital encoders.
Dolby licenses
MLP decoders for DVD-Audio players.
An MPEG-2 patent license is required from MPEG LA (MPEG Licensing Adminstrator). Cost
is $2.50 for a DVD player or decoder card and 4 cents for each DVD
disc, although there seems to be disagreement on whether content
producers owe royalties for discs.
Many DVD players are also Video CD (VCD) players.
Philips licenses the Video CD format
and patents on behalf of themselves, Sony, JVC, Matsushita, CNETT,
and IRT for $25,000 initial payment plus royalties of 2.5% per player
or $2.50 minimum.
Nissim claims
25 cents per player and 78/100ths of a cent for parental management
and other DVD-related patents.
Various licensing fees add up to over $20 in royalties
for a $200 DVD player, and about $0.20 per disc. Disc royalties
are paid by the replicator.
Royalties for DVD+R patents are charged by Philips
(approximately $0.06 per disc) and Sony (1.5 to 3.5% of disc price).
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