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The Authoritative Blu-ray Disc (BD) FAQ: X. Copying Deterrents, Content Protection, and Intellectual Property
Posted Aug 28, 2006 Print Version     Page 1of 1
  

X. Copying Deterrents, Content Protection, and Intellectual Property
     a. What is Regional Playback Control?

     b. Does Regional Playback Control apply to DVD-Video discs viewed on BD players?
     c. Who owns the name Blu-ray Disc and its logo?
     d. Who claims and who administers BD patent rights?
     e. What licensing obligations exist when duplicating and distributing content on writable BD discs?
     f. What licensing obligations exist when replicating and distributing content on prerecorded BD discs?

What is Regional Playback Control?
In addition to incorporating technologies that manage legitimate or discourage unauthorized copying (AACS, BD+, ROM Mark), BD-ROM AV discs employ Regional Playback Control (RPC) to help commercial movie publishers regulate sales of their products throughout the world.

BD Regional Playback Control (RPC) groups countries into three geographic areas (see table). Consumer electronics (CE) players and BD-ROM AV (HDMV/BD-J) discs contain information that specify in which of these they are to be marketed. To prevent movies designated for one part of the world being distributed elsewhere, a BD-ROM AV disc contains a checking program that automatically compares its own RPC details to those encoded in the player and stops operation if both do not match. Discs can be authored to play in one (A, B, C), multiple (A/B, B/C, A/C) or all (A/B/C) regions (region-free) but CE players are region-specific.

Computers, on the other hand, function differently. Rather than the BD drive containing RPC information, the region code is managed in the playback software, is set manually by the user and, optionally, may be changed up to five times.

BD license agreements mandate that RPC can be applied to a movie in a specific region for up to 12 months, after which new production runs of the title must be manufactured region-free.

BD-ROM AV Region Codes
(simplified)

Region Code

Geographic Region

A

North America, Central America, South America, Japan, Korea, Southeast Asia

B

Europe (EU), Africa, Middle East, New Zealand, Australia

C

China, India, Russia, Rest of the world

BD-ROM AV Region Codes
(expanded)

Region A

Region B

Region C

American Samoa

Albania

Afghanistan

Anguilla

Algeria

Armenia

Antigua and Barbuda

Andorra

Azerbaijan

Argentina

Angola

Bangladesh

Aruba

Australia

Belarus

Bahamas

Austria

Bhutan

Barbados

Bahrain

China

Belize

Belgium

Georgia

Bermuda

Benin

India

Bolivia

Bosnia and Herzegovina

Jammu and Kashmir

Brazil

Botswana

Kazakhstan

British Virgin Islands

British India Ocean Territory

Kyrgyz

Brunei Darussalam (Brunei)

Bulgaria

Mongolia

Cambodia

Burkina Faso

Nepal

Canada

Burundi

Pakistan

Cayman Islands

Cameroon

Russia

Chile

Cape Verde

Sri Lanka

Christmas Islands

Central African Republic

Tajikistan

Cocos Islands

Chad

Turkmenistan

Columbia

Channel Islands

Ukraine

Cook Islands

Comoros

Uzbekistan

Costa Rica

Congo

Cuba

Cote d'lvoire (Ivory Coast)

 

Democratic People's Republic of Korea (North Korea)

Croatia

 

Dominica

Cyprus

 

Dominican Republic

Czech Republic

 

Ecuador

Democratic Republic of Congo

 

El Salvador

Denmark

 

Falkland Islands

Djibouti

 

Fiji

Egypt

 

French Guiana

Equatorial Guinea

 

French Polynesia

Eritrea

 

Grenada

Estonia

 

Guadeloupe Martinique

Ethiopia

 

Guam

Faeroe Islands

 

Guatemala

Finland

 

Cooperative Republic of Guyana

Former Yugoslav Republic of Macedonia

 

Haiti

France

 

Honduras

Gabon

 

Hong Kong

Gambia

 

Indonesia

Germany

 

Jamaica

Ghana

 

Japan

Gibraltar

 

Johnston Island

Great Britain and Northern Ireland (United Kingdom)

 

Kiribati

Greece

 

Lao People's Democratic Republic (Laos)

Greenland

 

Macau Special Administrative Region (Macau)

Guinea

 

Malaysia

Guinea Bissau

 

Maldives

Hungary

 

Marshall Islands

Iceland

 

Martinique

Iraq

 

Mexico

Ireland

 

Micronesia

Islamic Republic of Iran (Iran)

 

Midway Islands

Isle of Man

 

Montserrat

Israel

 

Myanmar

Italy

 

Nauru

Jordan

 

Netherlands Antilles

Kenya

 

New Caledonia

Kuwait

 

Nicaragua

Latvia

 

Niue

Lebanon

 

Norfolk Island

Lesotho

 

Northern Mariana Islands

Liberia

 

Palau

Libya

 

Panama

Liechtenstein

 

Papua New Guinea

Lithuania

Paraguay

Luxembourg

 

Peru

Madagascar

 

Philippines

Malawi

 

Pitcairn (Pitcairn Islands)

Mali

 

Puerto Rico

Malta

 

Republic of Korea (South Korea)

Mauritania

 

Saint Kitts and Nevis

Mauritius

 

Saint Lucia

Mayotte

 

Saint Vincent and the Grenadines

Moldova

 

Samoa

Monaco

 

Singapore

Morocco

 

Solomon Islands

Mozambique

 

St. Pierre et Miquelon

Namibia

 

Suriname

New Zealand

 

Taiwan R.O.C.

Niger

 

Thailand

Nigeria

 

Timor

Norway

 

Tokelau

Oman

 

Tonga

Poland

 

Trinidad and Tobago

Portugal

 

Turks and Caicos Islands

Qatar

 

Tuvalu

Reunion

 

United States of America (USA)

Romania

 

Uruguay

Rwanda

 

Vanuatu

San Marino

 

Venezuela

Sao Tome and Principe

 

Vietnam

Saudi Arabia

 

Virgin Islands

Senegal

 

Wake Island

Serbia and Montenegro

 

Wallis and Futuna Islands

Seychelles

 

 

Sierra Leone

Slovakia

 

 

Slovenia

 

 

Somalia

 

 

South Africa

 

 

Spain

 

 

St. Helena ex. dep.

 

 

Sudan

 

 

Svalbard

 

 

Swaziland

 

 

Sweden

 

 

Switzerland

 

 

Syria

 

 

Tanzania

 

 

The Netherlands (Holland)

 

 

Togo

 

 

Tunisia

 

 

Turkey

 

 

UAE

 

 

Uganda

 

 

Vatican City State

 

 

Western Sahara

 

 

Yemen

 

 

Zambia

 

 

Zimbabwe

[Top of page] [BD FAQ home][EMedialive home]

Does Regional Playback Control apply to DVD-Video discs viewed on BD players?
Existing DVD Regional Playback Control (RPC) restrictions (see chart) still apply when viewing DVD-Video discs on BD players, drives and recorders.

DVD-Video Region Codes
(simplified)

Region Code

Geographic Region

1

United States, Canada

2

Japan, Europe, Middle East, South Africa

3

South East Asia (including Hong Kong)

4

Australia, New Zealand, Mexico, Central and South America

5

Northwest Asia, North Africa

6

China

7

Unassigned

8

Special purpose (aircraft, cruise ships, hotels)

[Top of page] [BD FAQ home][EMedialive home]

Who owns the name Blu-ray Disc and its logo?
For the most part, the Blu-ray Disc name and its logo are trademarks of the Blu-ray Disc Association (BDA). Originally, Sony Corporation (Sony Kabushiki Kaisha) and other founding BD companies registered Blu-ray Disc in various countries but have since transferred ownership to the BDA.

As worldwide registration is not yet complete, to be safe, the BDA employs transitional language such as "Blu-ray Disc and the Blu-ray Disc logo are trademarks." Other related names and logos, including BONUSVIEW, BD-Live, AVCREC and BD Regional Playback Control (RPC), are also trademarks of the BDA.


blu-ray disc family logos

(logos used with permission of Blu-ray Disc Association)

[Top of page] [BD FAQ home][EMedialive home]

Who claims and who administers BD patent rights?
Despite notions to the contrary, the Blu-ray patent picture is far more extensive than any one dominating company. Properly understood, BD intellectual property rights encompass everything from audio and video codecs, content protection systems and software to materials, manufacturing processes, packaging and more.

Seeking to avoid the complexities of DVD’s multi-agent system (DVD6C, 4C, 3C, 1C, etc.), MPEG LA began working in 2005 with BD’s multiple stakeholders to establish itself a one-stop essential Blu-ray patent licensing authority. Those who participated in this effort included: CyberLink, Dell, Disney, Hewlett-Packard, Hitachi, Philips Electronics, LG Electronics, Mitsubishi, Panasonic, Pioneer, Samsung, Sanyo, Sharp, Sonic Solutions, Sony, TDK, Victor Company of Japan (JVC) and Warner Home Video. MPEG LA later abandoned its attempt in early 2009.

On Feb. 25, 2009, Panasonic, Philips and Sony announced their intentions to cooperate with each other and any interested patent holders to create a joint Blu-ray license. Under this plan, packages of essential BD, DVD and CD patent licenses (see chart) will be made available to manufacturers and software publishers through an independent entity, established on Oct. 9, 2009 as One-Blue, LLC.

On Oct. 20, 2009, One-Blue, LLC issued a call for patents with their essentiality to BD products sold in the United States to be evaluated by Proskauer, Rose LLP (an international law firm that performs similar determinations for MPEG LA, DVD6C and 4C). An initial meeting of essential patent holders is planned for Nov. 6, 2009 in Japan. However, it is far from clear how successful this effort will be with respect to its ultimate participants as well as the scope and terms of any possibly consensual programs.

Philips, Panasonic and Sony Essential BD/DVD/CD Patent Royalties
(as of Feb. 25, 2009)

Products

License Royalties (US$)

Blu-ray Disc CE player

$9.50 unit

Blu-ray Disc CE recorder

$14.00 unit

Blu-ray Disc computer drive

$10.50 unit

Blu-ray Disc computer recorder

$14.00 unit

BD-ROM disc

$0.11 unit

BD-R disc

$0.12 unit

BD-RE disc

$0.15 unit

In addition and notwithstanding participating in pools, such as that proposed by Panasonic, Philips and Sony, companies typically offer the option to directly license their intellectual property. By way of example, Philips and Sony offer various programs to manufacturers who wish to license their essential BD patents (see charts).

Philips Electronics Essential BD Patent Royalties
(as of Feb. 7, 2008)*

Product

License Royalties

Blu-ray Disc ROM Data Disc

€0.03/unit ($0.0409 U.S.) **

Blu-ray Disc ROM Movie Disc

€0.04/unit ($0.0545 U.S.)

Blu-ray Disc R Disc

€0.06/unit ($0.0818 U.S.)

Blu-ray Disc RE Disc

€0.06/unit ($0.0818 U.S.)

Blu-ray Disc Player
(incl. DVD-Video, Video CD, AC-3 and DTS playback)

€3.50/unit ($4.769 U.S.)

Blu-ray Disc Recorder
(incl. DVD±R/RW, DVD-Video, Video CD, AC-3 and DTS playback)

€5.00/unit ($6.8129 U.S.)

* Manufacturers must begin accruing royalties from Feb. 1, 2008.
** U.S. currency conversion on Mar. 23, 2009.

Sony Electronics Essential BD Patent Royalties
(as of May 20, 2008)

Products

License Royalties

Blu-ray Disc ROM Disc

1.5% of net selling price or $0.03 U.S. (whichever is greater)

Blu-ray Disc R Disc

1.5% of net selling price or $0.06 U.S. (whichever is greater)

Blu-ray Disc RE Disc

1.5% of net selling price or $0.06 U.S. (whichever is greater)

Blu-ray Disc Player

1.5% of net selling price or $3 U.S. (whichever is greater)

Blu-ray Disc Recorder

1.5% of net selling price or $3 U.S. (whichever is greater)

MPEG LA also administers joint patent licenses for MPEG-2, MPEG-4 AVC/H.264 and VC-1 video codecs (see chart). Keep in mind, however, that while these portfolios may be comprehensive, they are not exhaustive and include only essential patents. Thus, it is possible that other parties may be due royalties. For example, neither AT&T, nor many of the participants of a rival, and now abandoned, MPEG-4 AVC/H.264 joint patent licensing program administered by Via Licensing Corporation, are included in MPEG LA’s offering.

MPEG-2 patent licensors: Alcatel Lucent, British Telecommunications plc, Canon, Inc., CIF Licensing, LLC, Columbia University, France Télécom (CNET), Fujitsu, General Instrument Corp., GE Technology Development, Inc., Hitachi, Ltd., KDDI Corporation (KDDI), LG Electronics Inc., Matsushita, Mitsubishi, Nippon Telegraph and Telephone Corporation (NTT), Philips, Robert Bosch GmbH, Samsung, Sanyo Electric Co., Ltd., Scientific-Atlanta, Sharp, Sony, Thomson Licensing, Toshiba and Victor Company of Japan, Limited (JVC).

MPEG-4 AVC/H.264 patent licensors: DAEWOO Electronics Corporation, Electronics and Telecommunications Research Institute, France Télécom, société anonyme, Fraunhofer-Gesellschaft zur Foerderung der angewandten Forschung e.V., Fujitsu Limited, Hitachi, Ltd., Koninklijke Philips Electronics N.V., LG Electronics Inc., Matsushita Electric Industrial Co., Ltd., Microsoft Corporation, Mitsubishi Electric Corporation, NTT DoCoMo, Inc., Nippon Telegraph and Telephone Corporation, Robert Bosch GmbH, Samsung Electronics Co., Ltd., Scientific-Atlanta Vancouver Company, Sedna Patent Services, LLC, Sharp Corporation, Siemens AG, Sony Corporation, The Trustees of Columbia University in the City of New York, Toshiba Corporation and Victor Company of Japan, Ltd (JVC).

VC-1 patent licensors: DAEWOO Electronics Corporation, France Télécom, société anonyme, Fujitsu Limited, Koninklijke Philips Electronics N.V., LG Electronics Inc., Matsushita Electric Industrial Co., Ltd. (Panasonic), Microsoft Corporation, Mitsubishi Electric Corporation, Nippon Telegraph and Telephone Corporation (NTT), Pantech & Curitel Communications, Inc., Samsung Electronics Co., Ltd., Sharp Corporation, Siemens AG, Sony Corporation, Telenor ASA, Toshiba Corporation and Victor Company of Japan, Ltd. (JVC).

MPEG LA Essential Video Codec Patent Royalties
(abridged, U.S. funds)*

Products

MPEG-2

MPEG-4 AVC/H.264

VC-1

Disc
(prerecorded/replicated, written/duplicated)

≤12 min = $0.01/disc ;
>12 min = $0.03/disc
(2003-09), $0.0176/disc (2010), $0.016/disc (after 2010)

≤12 min = $0.00/title;
>12 min = lower of 2% of sale price or $0.02/title

≤12 min = $0.00/title;
>12 min = lower of 2% of sale price or $0.02/title

Encoder
(recorder, etc.)

$2.50/unit (2002-09), $2.00/unit (2010)

≤100k units = $0.00/unit;
>100k units = $0.20/unit;
>5m units = $0.10/unit;
max. $3.5m/year (2005-06),
$4.25 m/year (2007-08), $5m/year (2009-10)

≤100k units = $0.00/unit;
>100k units = $0.20/unit;
>5m units = $0.10/unit;
max. $5m/year (2006-12)

Decoder
(player, etc.)

$2.50/unit (2002-09), $2.00/unit (2010)

≤100k units = $0.00/unit;
>100k units = $0.20/unit;
>5m units = $0.10/unit;
max. $3.5m/year (2005-06),
$4.25 m/year (2007-08), $5m/year (2009-10)

≤100k units = $0.00/unit;
>100k units = $0.20/unit;
>5m units = $0.10/unit;
max. $5m/year (2006-12)

Encoder and Decoder/Consumer Products
(recorder/player, camcorder, etc.)

$2.50/unit (2002-09), $2.00/unit (2010)

≤100k units = $0.00/unit;
>100k units = $0.20/unit;
>5m units = $0.10/unit;
max. $3.5m/year (2005-06),
$4.25 m/year (2007-08), $5m/year (2009-10)

≤100k units = $0.00/unit;
>100k units = $0.20/unit;
>5m units = $0.10/unit;
max. $5m/year (2006-12)

* Other future, current and historical computation methods and rates may be applicable.

Various industry groups develop, maintain and license the digital audio/video interface and related encryption technologies employed by BD-equipped computers and consumer electronics devices (see chart). These include HDMI Licensing, LLC (HDMI), Digital Display Working Group (DVI), Video Electronics Standards Association (DisplayPort) and Digital Content Protection, LLC (HDCP).

Audio/Video Interface Licensing Fees and Patent Royalties
(U.S. funds)

License

Fees and Royalties

DisplayPort Registration

none

DVI Adopters Agreement

none

HDMI Adopter Agreement

$10K/year or $5K/year + $1.00/unit and $0.15/unit or
$0.05/unit w/trademarks or
$0.04/unit w/trademarks and HDCP

HDCP License Agreement

$15K/year and
10K device keys = $1K; 100K device keys = $2.5K; 1M device keys = $5K

HDCP Component License Agreement

$15K/year

HDCP Content Participation Agreement

$50K/year

The Advanced Access Content System (AACS) is developed, administered and licensed by AACS LA, a consortium of technology and content providers consisting of IBM, Intel, Panasonic (Matsushita Electric), Sony, Toshiba, Microsoft, Disney and Warner Bros.

AACS Licensing Fees and Patent Royalties
(as of June 26, 2008, U.S. funds)

License

Fees and Royalties

AACS Interim Adopter Agreement

Adopter $25K/year + $5K/sub-category (max. $40K) for each of: player manufacturer, recorder manufacturer, drive manufacturer, component manufacturer, media manufacturer or
Licensed content producer $15K

prerecorded media = $0.04/disc + $1K/order
recordable media = $0.02/disc + $1K order

Device w/ECDSAType A Device Keys = $0.10/device
Type C Device Keys = $3.5K <100K copies/year
$12K <1M copies/year
$30K <10M copies/year
max. $60K/year
+ 1K/order

AACS Device w/o ECDSA
Type A Device Keys = $0.08/device
Type C Device Keys = $3K <100K copies/year
$10K <1M copies/year
$25K <10M copies/year
max. $50K/year
+ 1K/order

Type 3 MKB for Recorders = $0.02/device
max. $2K+ $1K/order

Drives $0.02/device + $1K/order

Content Certificates $500/certificate + $800/order

AACS Interim Content Participant Agreement

Content Participant $40K/year and
prerecorded media = $0.04/disc + $1K/order or
<500K discs = $12K/year
<2M discs = $40K/year
<5M discs = $80K/year
<15M discs = $200K/year
<70M discs = $600K/year
<120M discs = $1.4M/year
<170M discs = $1.9M/year
<250M discs = $2.3M/year
>250M discs = $2.5M/year
+ $1K/order and
Content Certificates = $500/certificate + $800/order

AACS Interim Content Provider Agreement

Basic Content Provider = $3K or
Volume Content Provider = $15K/year and
prerecorded media = $0.04/disc + $1K/order or
<500K discs = $12K/year
<2M discs = $40K/year
<5M discs = $80K/year
<15M discs = $200K/year
<70M discs = $600K/year
<120M discs = $1.4M/year
<170M discs = $1.9M/year
<250M discs = $2.3M/year
>250M discs = $2.5M/year
+ $1K/order and
Content Certificates = $500/certificate + $800/order

AACS Interim Reseller Agreement

$5K/year

[Top of page] [BD FAQ home][EMedialive home]

What licensing obligations exist when duplicating and distributing content on writable BD discs?
Distributing digital audio, video, text and still images, either electronically or on physical media, often involves important patent, trademark and other intellectual property considerations. When working with Blu-ray the need to enter into and comply with various license agreements differs depending upon the circumstance. For detailed descriptions of these requirements as they pertain to duplicating (recording) and distributing content on writable BD (BD-R/RE) discs see: Hugh Bennett. "Blu-ray Disc Licensing for Small Publishers, Duplicators, and Independent Studios." EMediaLive 26 June 2008.

[Top of page] [BD FAQ home][EMedialive home]

What licensing obligations exist when replicating and distributing content on prerecorded BD discs?
Distributing digital audio, video, text and still images, either electronically or on physical media, often involves important patent, trademark and other intellectual property considerations. When working with Blu-ray the need to enter into and comply with various license agreements differs depending upon the circumstance. For a detailed description of these requirements as they pertain to replicating and distributing content on prerecorded/pressed BD (BD-ROM) discs see: Hugh Bennett. "The Ins and Outs of Blu-ray Disc Replication and Licensing." EMediaLive 7 Oct. 2008.

[Top of page] [BD FAQ home][EMedialive home]

The Authoritative Blu-ray Disc (BD) FAQ. Copyright © Hugh Bennett, 2006-2009.

Print Version   Page 1of 1
  
 


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