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One-Blue Patent Pool Reveals Five Key Steps to Effective Patent Licensing

NEW YORK, July 17, 2012 — Patent pooling is an effective and proven tool for helping companies manage their product and technology licensing programs. For licensees, pools of patents from multiple licensors generally carry lower royalty fees than the total for licenses secured from the licensors individually. Patent pooling also saves valuable time that licensees would otherwise spend negotiating with multiple patent holders —time better spent delivering products to market. Licensors likewise benefit from a central point of contact that encourages patent bundling and fair play. Both parties enjoy lower transaction costs.

One-Blue, LLC, the one-stop shop for patent licenses from the leading providers of
Blu-ray Disc (BD) technology, operates a pool of a large number of  licensors and more than ten thousand BD product patents that are essential to upholding BD, DVD, and CD standards. One-Blue offers licenses for various BD products including: players, recorders, playback drives, recorder drives, software, PCs, pre-recorded discs, and recordable discs.  As a result of this considerable undertaking, One-Blue has developed a series of best practices for other industries to consider as they create their own patent pools. By following these steps, companies can ensure that their patent pool is governed fairly, offers a level playing field for licensors and licensees, lowers costs for all parties, and is able to take swift enforcement action when required.

The power of independence. Fifteen  patent owners are licensors in the pool operated by  One-Blue, namely Cyberlink, Dell, Fujitsu, Hewlett- Packard, Hitachi, JVC Kenwood, LG, Panasonic, Philips, Pioneer, Samsung, Sharp,  Sony, Taiyo Yuden, and Yamaha.  Five of these companies are also shareholders in One-Blue, LLC, but One-Blue operates the pool as an independent licensing entity. For complex markets with diverse patent environments, this model allows a pool to more equitably manage the licensing process and removes possible points of contention between licensors. Also, by moving licensors away from the front lines of enforcement action, an independent entity has the autonomy to aggressively enforce patent rights anywhere and against any party.

Required participation in enforcement. In the event an enforcement action is warranted, all members of the pool agree to participate by making their patents available for use by legal counsel. This prevents some members from opting out of enforcing their patents, while at the same time enjoying the pool’s benefits.

Per-batch licensing. All too often, companies sign a license agreement but fail to abide by its terms. A company that refuses to pay royalties increases the cost of business for all other parties while giving itself an unfair advantage. Per-batch licensing closes this loophole by licensing only the products shipped, not the company itself. Each product shipment carries licensing documentation and registration logos with serial numbers that can be verified by customs officials, distributors and retailers. While it may seem like an extra step, per-batch licensing ensures licensees pay for what they ship.

Pre-netting. In many cases, licensees hold pre-existing patent licenses with various patent pool licensors. Pre-netting takes these pre-existing licenses into account and subtracts what would be due licensors that have the granted pre-existing licenses when calculating royalty payments. This step ensures that licensees pay only for what they use and encourages broader participation in the pool.

Patent weighting. Not all patents are created equal. One mistake patent pools often make is to ignore this fact and assign the same worth to each patent in the pool.  Not only does this approach reward licensors whose essential patents may be more valuable, it also discourages a patent arms race in which licensors are incentivized to roll as many less valuable patents into the pool as possible in order to inflate their royalty share.

For more information, contact One-Blue,at http://www.one-blue.com/.


About One-Blue


As the one-stop shop representing the Blu-ray Disc industry’s leading technology providers, One-Blue, LLC provides patent licenses from the leading Blu-ray, DVD and CD product IP holders. One-Blue creates a level playing field by guaranteeing strong patent enforcement for licensees and licensors and ensure competitive parity for all Blu-ray Disc providers. One-Blue’s patent pool is built upon industry best practices to help all parties lower royalties, transaction costs and streamline the patent licensing process.

News archive

Mar 11, 2016: Harman International Industries, Incorporated Joins the One-Blue Licensing Program for Blu-ray Disc™
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Sep 10, 2015: I-O DATA DEVICE, INC. Joins the One-Blue Licensing Program for Blu-ray Disc™
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Jun 15, 2015: BUFFALO INC. Joins the One-Blue Licensing Program for Blu-ray Disc™
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Feb 17, 2015: One-Blue Announces Columbia Technology Ventures to join Licensing Program for Blu-ray Disc™ Products
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Dec 22, 2014: Corel Corporation Joins the One-Blue Licensing Program for Blu-ray Disc™
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Dec 15, 2014: Millenniata Inc. Joins the One-Blue Licensing Program for Blu-ray Disc™
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Sep 11, 2014: DigiOn, Inc. Joins the One-Blue Licensing Program for Blu-ray Disc™
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Sep 4, 2014: DIGISTOR Joins the One-Blue Licensing Program for Blu-ray Disc™
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Jul 30, 2014: Kaleidescape, Inc. Joins the One-Blue Licensing Program for Blu-ray Disc™
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Feb 6, 2014: sMedio Inc. Joins the One-Blue Licensing Program for Blu-ray Disc™
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Oct 16, 2013: arvato Joins the One-Blue Licensing Program for Blu-ray Disc™
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Sep 9, 2013: VidaBox LLC Joins the One-Blue Licensing Program for Blu-ray Disc™
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Jun 26, 2013: CD Video Manufacturing, Inc. Joins the One-Blue Licensing Program for Blu-ray Disc™
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May 28, 2013: One-Blue Licensing Program for Blu-ray Disc™ Brings Patent Infringement Action Against Imation Corporation
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Apr 3, 2013: Alco Electronics Limited Joins the One-Blue Licensing Program for Blu-ray Disc™
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Jan 22, 2013: Cinram Joins the One-Blue Licensing Program for Blu-ray Disc™
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Dec 6, 2012: U-Tech Media Joins the One-Blue Licensing Program for Blu-ray Disc™
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Nov 14, 2012: PrimeDisc Marketing and Bestdisc Technology Join the One-Blue Licensing Program for Blu-ray Disc™
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Oct 15, 2012: Top Media Joins the One-Blue Licensing Program for Blu-ray Disc™
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Sep 12, 2012: Macgo International Limited Joins the One-Blue Licensing Program for Blu-ray Disc™
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Aug 23, 2012: What Retailers Should Know About Blu-ray Disc™ Patent Protection
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Aug 14, 2012: B.R. Productions & Packaging Joins the One-Blue Licensing Program for Blu-ray Disc™
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Jul 17, 2012: One-Blue Patent Pool Reveals Five Key Steps to Effective Patent Licensing
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Jun 28, 2012: One-Blue Celebrates Successful First Year of Worldwide Blu-ray Disc Patent Pool
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Jan 24, 2012: Sharp joins the One-Blue Licensing Program for Blu-ray Disc™
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Jan 19, 2012: Fujitsu joins the One-Blue Licensing Program for Blu-ray Disc™ products
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Jan 17, 2012: TAIYO YUDEN joins the One-Blue Licensing Program for Blu-ray Disc™ products
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Jan 12, 2012: YAMAHA CORPORATION joins the One-Blue licensing program for Blu-ray Disc™ products
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Jan 4, 2012: Samsung Electronics joins the One-Blue Licensing Program for Blu-ray DiscTM products
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Jan 3, 2012: Pioneer joins the One-Blue Licensing Program for Blu-ray DiscTM products
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Nov 16, 2011: One-Blue Announces Dell to join Licensing Program for Blu-ray DiscTM
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Nov 14, 2011: LG Electronics joins the One-Blue Licensing Program for Blu-ray DiscTM
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Oct 17, 2011: JVC KENWOOD joins One-Blue Licensing Program for Blu-ray Disc™ products
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Sep 27, 2011: One-Blue Licensing Program for Blu-ray DiscTM products to include HP
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Sep 6, 2011: One-Blue featured in IAM Magazine
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Aug 3, 2011: One-Blue Launches Licensing Program for Blu-ray Disc Products
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Oct 19, 2009: “One-Blue” issues a call for essential patents for Blu-ray Disc™ products
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Feb 25, 2009: Panasonic, Philips and Sony to establish One Stop Shop product license for Blu-ray Disc™
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