Blu-ray licensing to see big changes

New proposals for flat fee payments

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2 March 2009 10:28 GMT / By Amy-Mae Elliott

The companies behind the Blu-ray disc format are trying to change the way the licensing of the technology is handled, a move that could potentially see cheaper prices.

Panasonic, Philips, and Sony have revealed they are working with Blu-ray patent holders to try and create one company that would deal with the licensing of the technology.

If approval is gained, then the more simple system would see all Blu-ray products licensed at a flat fee, to then be divided among all the patent holders.

The new "one-stop shop" company would be led by Gerald Rosenthal, the former head of intellectual property at IBM.

"By establishing a new licensing entity that offers a single license for Blu-ray disc products at attractive rates, I am confident that it will foster the growth of the Blu-ray disc market and serve the interest of all companies participating in this market, be it as licensee or licensor", Rosenthal said in a statement.

The new licensing fees are said to be $9.50 for a Blu-ray player and $14 for a recorder for hardware manufacturers, while disc manufacturers would have to pay 11 cents for a read-only disc, 12 cents for a recordable disc and 15 cents for a rewritable disc.