A significant licensing agreement was reached by key holders of DVB-S2 intellectual property. DVB-S2 is the second generation DVB system for broadband satellite communications, covering digital TV and HDTV broadcasting, interactive services, and professional links by satellite. is the second generation DVB system for broadband satellite communications, covering digital TV and HDTV broadcasting, interactive services, and professional links by satellite.
DIRECTV, RAI (Radiotelevisione Italiana), and European Space Agency (ESA) -- the three rights holders to the technology -- will jointly offer a license under their combined portfolios of intellectual property rights necessary for the implementation of DVB-S2. For consumer applications, such as satellite television set-top box receivers, a license under the combined portfolios will not exceed $0.50 per product in quantities exceeding 500,000 over the term of the license and not to exceed $1.00 per product in lower quantities. Licenses for consumer applications will be granted for five-year terms. Renewals will be granted on fair and reasonable terms based on then-current market conditions.
Free-to-air and pay-TV broadcasters will not be required to pay a separate service license fee to broadcast to licensed receivers. The per product royalties and the arrangements for broadcasters are geared to help launch DVB-S2 technology and follow the commitment of the rights holders to offer licenses on fair, reasonable and non-discriminatory terms.
DIRECTV Group said the agreement is significant because it will set limits on cumulative royalties paid for the licensing of intellectual property rights in order to speed adoption of the DVB-S2 standard.
