**MPEG License Update. Bel

#173068
AvatarCville
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**MPEG License Update. Below this paragraph ispart of the response text I received from MPEG LA, LLC My emails with them began after reading about the MPEG license info in the manual for my SonyHVR-HD1000U camera. I believe that this is a very clear explanation of the license requirements and is something that all who areinvolved invideo on any professional level should be aware of. If you have any questions they encourage you to go to their website and you can send questions thru the site. They have been very responsive to everything that I have asked. It is apparently very easy to get licensed by them. I am currently reviewing the documentation that they have sent me.

In short, the royalty paid by Sony for the manufacture and sale of the camera includes the rights for the camera to be used as you described (e.g., wedding videographers, small companies, universities). In addition, the royalty paid by Sony also includes the right for a consumer to create MPEG-2 Packaged Medium (e.g. DVD Video discs) for the consumers own personal use. But, when the camera is used to create MPEG-2 Packaged Medium for anything other than a consumers own personal use, then the party creating the Packaged Medium needs to be licensed and is responsible for paying a royalty per copy.
For example, if you were to record your own family videos and create DVD Video discs for your own use, then the royalty paid by Sony would cover this use and no further royalties would be payable. On the other hand, if you use the camera to create promotional videos for small businesses and non-profit organizations as you suggest, then a per-disc royalty would be payable for each copy. In short, the current royalty for MPEG-2 Packaged Medium is $0.024

I should also clarify that our License covers the party that creates the discs containing MPEG-2 video. Therefore, if you were to outsource the replication of the discs to a disc replication/duplication company, the royalty would normally be paid by that company.

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