MPEG Surround Standard
License Fees
Preliminary1

Licensed Products (Other than PC Software) - "Standard Rates"

Consumer Products - MPEG Surround
Volume (per unit*/annual reset) Per Unit Fee
For the first 1 to 500,000 units $0.49
For units 500,001 to 1,000,000 $0.38
For units 1,000,001 to 2,000,000 $0.31
For units 2,000,001 to 5,000,000 $0.26
For units 5,000,001 to 10,000,000 $0.21
For units 10,000,001 to 20,000,000 $0.12
For units 20,000,001 to 50,000,000 $0.10
For units 50,000,001 or more $0.075
* Binaural products count as 0.5 units (see below)

MPEG Surround Binaural Mode
Products that implement only the binaural mode of MPEG Surround count as half-a-unit for the purpose of license fee calculations. For example, if a licensee ships 5,000 licensed products, and 3,000 of these are binaural (stereo output only), then the total cost would be $1,715, calculated as (2,000 + (3,000/2)) * 0.49.


Professional2 Products
Decoder Products Encoder/Codec Products
Per Unit Fee $2.50 $25.00


PC Software

Consumer PC Software
Decoder Products Encoder/Codec Products
Per Unit Fee $0.25 $0.50
Maximum Annual Payment $32,000 per PC Software Product $172,000 per Licensee


Professional PC Software
Decoder Products Encoder/Codec Products
Per Unit Fee $2.50 $25.00
Maximum Fee per PC Software Product N/A Not to exceed 2.5% of end-user price


1 Pricing is subject to change until presented in the final license agreement, which is expected to be available in the fourth quarter of 2010.

2 A Professional Product is intended primarily for an end-user's direct revenue-generating use or intended to serve as a main resource to generate revenue for end-users, including monitoring and testing equipment.