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One-Blue announces a Paid-Up License Program for All BD/UHD Licensees

(New York, USA – April 1, 2022) Today One-Blue, LLC announced a Paid-Up License (PUL) program for existing BD/UHD product Registered Parties / Licensees (“Licensees”).

The PUL program is designed to provide One-Blue Licensees with substantial financial and administrative benefits in exchange for a one-time lump-sum payment. Concurrent with the program launch, an early bird discount of 5% to 15% will be offered if a Licensee executes a PUL agreement on or before October 31, 2022. 

1) What is the benefit of the One-Blue PUL program?
The primary benefit of the PUL program is to eliminate future running royalty reporting and reoccurring payment obligations once the PUL is effective. 

Licensee can also look forward to the elimination of administrative requirements such as regular tax receipt submission, label attachment, per-batch license applications and/or quarterly royalty reporting.  (Please note that the tax receipt for the one-time lump-sum payment under PUL must still be submitted).  Last but not least, Registration Agreement and License Agreement renewal fees will not be required after the PUL Addendum is effective.

2) How will the PUL amount be determined?
To calculate the amount of the one-time lump-sum payment (“PUL amount”), a Licensee’s previously reported quantities (Measured Quantities) for the period between April 1, 2020 and March 31, 2022 (twenty-four consecutive months) will be used, less any applicable “early bird discount”.  To be more specific, the PUL amount is calculated by multiplying the Measured Quantities by the One-Blue product specific royalty rate presently in effect.  The exact final PUL amount will be available after January 15, 2023, when any applicable deductions such as royalty offsetting, withholding tax and early bird discount will be known.

3) Can Licensees increase their shipped quantities after signing a PUL?
Yes. Aside from a few exceptions, Licensees are able to increase future quantities of BD/UHD products that they ship, without an additional fee beyond the PUL amount. 
 
4) What is the “early bird discount” incentive?
A discount will be offered if a Licensee executes the PUL on or before October 31, 2022.  Depending on when the Licensee signs the PUL Addendum, they will be eligible for a 5% to 15% discount of Measured Quantities. The sooner a PUL is executed, the larger the discount. 

Specifically, Licensees will be entitled to a Payment discount determined by a reduction in the Measured Quantities equaling i) 15% of Measured Quantities if the PUL Execution Date is on or before June 30, 2022, ii) 10% of Measured Quantities if the PUL Execution Date is between July 1, 2022 and August 31, 2022, or iii) 5% of Measured Quantities if the PUL Execution Date is between September 1, 2022 and October 31, 2022.

A Licensee who takes full advantage of the early bird discount will effectively reduce their Measured Quantities from 24-months to approximately 20-months, based on the 15% reduction.

5) Will a licensee be required to report and pay royalties after committing to a PUL?
Licensees who execute a PUL must still continue to report and pay for running royalties shipped through December 31, 2022, under the terms of their existing Agreement(s).

6) What is the deadline for electing a PUL?
There is no deadline for electing a PUL. Though, in order to take advantage of the early bird discount and receive the earliest possible effective date, Licensees are encouraged to execute a PUL as soon as possible.

7) Can a Licensee elect to not participate in the PUL program?
A Licensee can elect to not participate in the PUL program. Those Licensees must continue their reporting and all other obligations under their existing Agreement(s).  All product specific license terms remain in effect, including but not limited to LSCD application, monthly/quarterly royalty reporting and payment, labeling requirements, and agreement renewal fees.

8) Why is a PUL an excellent value for One-Blue’s Licensees?
The strength of One-Blue is best illustrated by the number of existing essential patents which remain available for license. Hence, enforcement of such patents will remain a priority. Therefore, it can be fairly stated that the PUL value proposition is unparalleled in that the Licensees will continue to receive patent protection in addition to significant cost and administrative savings.

The PUL program is designed to reduce Licensees’ future cost and administrative burdens while still providing the full protection and benefits of the One-Blue licensing program, which is anticipated to remain in place for multiple years. Given that the One-Blue BD/UHD patent landscape remains robust, the One-Blue program is expected to continue to offer economic benefits to all producers, resellers, and downstream consumers alike.

9) Will License Status Confirmation Documents (LSCD’s) be available for those Licensees electing PUL’s?
One-Blue will maintain the Licensee Database, which can be found on our website, https://www.one-blue.com/licensees/. However, once a PUL is effective, LSCD’s will be unavailable.

10) How can a Licensee immediately get started with their PUL?
All Licensees are assigned a dedicated One-Blue Account Manager (AM). The AM’s are prepared to answer questions and are best suited to assist. One-Blue encourages our Licensees to speak directly with their AMs without delay to ensure they receive the maximum benefit and savings available under the PUL program.

Press inquiries may be directed to info@one-blue.com, attention: Mr. Dan Berman, CEO

About One-Blue, LLC
One-Blue, LLC is an independent licensing company that administers a product license for patents essential to Ultra HD Blu-ray™ and Blu-ray Disc™ products.