Blu-ray royalty rates are expected to plunge with the formation of a global independent Blu-ray licensing company by industry heavyweights Sony, Panasonic and Philips.
A new license system will be established by mid-2009 as a "one-stop shop" for device makers, representing the interests of all Blu-ray patent holders. Licensing will be managed by an as yet unnamed new company, headed by Gerald Rosenthal - former head of intellectual property at IBM. Offices will be spread across the United States, Asia, Europe and Latin America.
As a result of the new licensing systems, royalty rates will drop by 40 percent for individual Blu-ray Disc, DVD and CD format licenses.
The fees for the new licenses will be $9.50 for a Blu-ray player and $14 for a Blu-ray recorder. Making Blu-ray Disc will cost 11 cents for read-only, 12 cents for recordable discs and 15 cents for rewritable discs.