[ CATV Essential Patent License ] FAQ

What is the CATV Essential Patent License?
The CATV Essential Patent License is a single package license which offers multiple essential patents held by multiple parties on fair and reasonable terms.  This will promote the prevalence of digital cable broadcasting and contribute to the convenience of prospective licensees.  ULDAGE Inc. is authorized to perform as an administrator of the CATV Essential Patent License.
What does the CATV Essential Patent License cover?

The CATV Essential Patent License provides license under patents essential to the standards in the digital cable broadcasting field developed by the Japan Cable Television Engineering Association and referred to as JCTEA STD-001, JCTEA STD-002, JCTEA STD-003, JCTEA STD-007, JCTEA STD-011 and JCTEA STD-012, the operational specifications developed by Japan Cable Laboratories and referred to as JCL SPEC-001, JCL SPEC-001-01, JCL SPEC-001-02, JCL SPEC-002, JCL SPEC-003, JCL SPEC-004, JCL SPEC-005, JCL SPEC-006 and JCL SPEC-007 as well as the standards developed by the Association of Radio Industries and Businesses ("ARIB") and referred to as ARIB STD-B20, ARIB STD-B24, ARIB STD-B25, ARIB STD-B31 and ARIB STD-B32, the technical data referred to as ARIB TR-B14 and ARIB TR-B15(1) (collectively "CATV Standards(2)"), and such patents are identified on our web site ("Essential Patent Portfolio").
The Essential Patent Portfolio is updated each quarter.  Please click here for the latest version.

(1) Some parts of the standards listed above are excluded from CATV Standards.  Please see the relevant parts of our Web sites for further details.
(2) Where the JCTEA standards and the JCL operational specifications specifically state "in compliance with the ARIB Standards" or "as set forth in the ARIB Standards", the relevant portions of the ARIB standards shall be included in the CATV Standards.
Who are the holders of the CATV Essential Patents ("CATV Patent Holders")?
As of April 1, 2009 essential patents in the Essential Patent Portfolio are owned by France Telecom S.A; FUJITSU LIMITED; Hitachi Ltd.; Kenwood Corporation; Mitsubishi Electric Corporation; NEC Corporation; Nippon Hoso Kyokai (NHK); Panasonic Corporation; Pioneer Corporation; Sanyo Electric Co., Ltd.; Sharp Corporation; Sony Corporation; Thomson Licensing S.A.; Toshiba Corporation and Victor Company of Japan, Limited.
The CATV Patent Holders are updated each quarter.  Please click here for the latest version.
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Does the CATV Essential Patent License include all patents for the CATV Standards?
It cannot be guaranteed that the CATV Essential Patent License includes all patents that are essential for the CATV Standards.  ULDAGE Inc. endeavors to be able to offer as many essential patents as possible.
What is the evaluation procedure of an essential patent for the CATV Standards?
The Japan Intellectual Property Arbitration Center ("JIPAC") is an independent third party evaluating which patents are essential for the CATV Standards.  Any party who believes it holds patents that are essential for the CATV Standards is invited to submit them to the JIPAC for evaluation.  If any party is interested and needs further information, please go to the website of the JIPAC.  Please be aware that patent submission is only in the Japanese language.
What happens if a new patent is added to the Essential Patent Portfolio, or a new patent holder participates in the CATV Essential Patent License?
There are no changes in the license terms for the current contract period.
What are the licensed products and the royalties for the CATV Essential Patent License?
Please click here for further information.
If Company A manufactures and sells a product and such product uses only a part of the Essential Patent Portfolio, is it possible to obtain a license only for the patents used in such product?
Which patent(s) to use among the patents included in the Essential Patent Portfolio is up to the licensee.  The CATV Patent Holders have the right to grant a license individually and independently of the CATV Essential Patent License.  A party which wishes to obtain a license for only a part of the Essential Patent Portfolio may conduct separate negotiations and obtain such license from the CATV Patent Holder holding the relevant Essential Patent(s).
What is the duration of the CATV Essential Patent License?
The CATV Essential Patent License shall take effect retroactively on the initial day of the quarter to which the execution date of the license agreement belongs and shall remain in force until March 31, 2012 (for instance, if the execution date is October 30, 2008, the license takes effect as of October 1, 2008).  The CATV License shall be automatically renewed for another five years unless otherwise notified six months prior to the expiration date.
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If Company A imports a product covered by the CATV Essential Patent License from an overseas manufacturer and sells such product in Japan, is Company A required to obtain the CATV Essential Patent License?
Yes.  Company A needs to be licensed.
(It is noted that, with regard to the product for which Company A has obtained the license and paid the royalty, neither ULDAGE nor the relevant Patent Holder will enforce their rights even if the patent corresponding to the relevant CATV Essential Patent is in effect in the country where such product has been manufactured.)
Is it required to pay a royalty which has accrued before the execution date of the CATV Essential Patent License Agreement?
It is required to pay royalties for the product made or sold for the period on and after January 1, 2000.  Such payment is to be made together with the payment of the royalty for the quarter to which the execution date belongs.
Why is the payment to ULDAGE Inc. treated as a royalty payment for the patents?
ULDAGE Inc. is licensed to grant a sublicense from each CATV Patent Holder and holds the legal right to grant a nonexclusive license to parties who seek a license for patents in the Essential Patents Portfolio.
Is there a possibility that the license could be discontinued in the middle of the contract period?
The license is guaranteed during the contract period.
What happens if Company A continues to sell a licensed product without obtaining the CATV Essential Patent License?
It will constitute an infringement on the right of each patent in the Essential Patent Portfolio.
How is royalty calculated?
Please contact ULDAGE Inc. at information@uldage.com.
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