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ATSC Patent Portfolio License Briefing*

ATSC Patent Portfolio License Briefing*. *This presentation is for information purposes only. Actual license agreements will provide the only definitive and reliable statement of license terms. V03/25/10. Objective.

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ATSC Patent Portfolio License Briefing*

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  1. ATSC Patent Portfolio License Briefing* *This presentation is for information purposes only. Actual license agreements will provide the only definitive and reliable statement of license terms. V03/25/10

  2. Objective • A license for the convenience of users enabling them to acquire patent rights necessary for the ATSC Standard from multiple patent owners in a single transaction as an alternative to negotiating separate licenses 2

  3. Coverage • Each patent is essential to the ATSC standard as defined in the ATSC Patent Portfolio License • Patent holders submit patents for evaluation of their essentiality by independent patent experts • Worldwide coverage including essential counterparts • Licensors include all essential ATSC patents • Copies of ATSC standard specifications developed and published by the Advanced Television Systems Committee are available at www.atsc.org/standards.html 3

  4. Coverage • Attachment 1 to the License is a list of patents updated quarterly to add new essential ATSC patents • See www.mpegla.com (Current Pools, ATSC, Patent List) • New Licensors and essential patents may be added at no additional royalty during the current term, and coverage is provided for the entire term of license • The ATSC License does not provide coverage for essential MPEG-2 patents. A separate joint license for MPEG-2 patents is available from MPEG LA at www.mpegla.com (Current Pools, MPEG-2, Agreement). 4

  5. Koninklijke Philips Electronics N.V. LG Electronics Inc. Mitsubishi Electric Corporation Panasonic Corporation Samsung Electronics Co., Ltd. Scientific-Atlanta, LLC The Trustees of Columbia University in the City of New York Zenith Electronics LLC Current Patent Owners Essential Patent Holders currently include: 5

  6. ATSC LicenseSublicense Category ATSC Receiver Products • ATSC Receiver Products capable of demodulating and decoding an over-the-air, RF terrestrial broadcast signal in compliance with the ATSC Standard 6

  7. ATSC License Terms:ATSC Receiver Products • Royalty of $5.00 for each ATSC Receiver Product • Includes the right to make, have made, sell, offer for sale, import, and for an End User to use ATSC Receiver Products • Coverage from December 24, 1996 • Royalties payable on products from January 1, 1998 7

  8. Term • First Term: December 24, 1996 – December 31, 2016 • Renewable for successive 5-year periods for the life of any Portfolio patent on reasonable terms and conditions • Rate Protection on Renewal – royalty rates for specific license grant will not increase by more than 10% at renewal 8

  9. Other Important Provisions • Most Favorable royalty rates clause • Licensee data is protected as confidential • Grant-back on essential patents similar in scope to license grants • No marking requirements 9

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