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G.729 Consortium General Licensing Terms and Conditions

The G.729 Consortium is composed of France Telecom, Mitsubishi Electric Corporation, Nippon Telegraph and Telephone Corporation, Toshiba Corporation and Universite de Sherbrooke

G.729 or G.729 Combined with Annex A

All Prices in US dollars

Option 1 - Royalty Based

Initial Fee: $15,000

Cumulative Unit Royalty per Channel per Licensed Product Sold

Number of Channels

Unit Royalty

<100K

$1.45

100K-500K

$1.30

500K-1M

$1.00

1M-3M

$0.80

3M-5M

$0.70

5M-10M

$0.50

>10M

$0.30

Royalty Cap

Introduction of a yearly cap (maximum amount paid yearly) fixed at:

$750,000.00

Minimum Annual Royalty (applicable at the end of the second year) $7,500

Option 2 - Prepaid Option

Maximum number of Channels sold

Pre-paid license fee G.729

50,000

$71,649.00

100K

$126,827.00

200K

$217,000.00

500K

$476,000.00

1M

$767,000.00

3M

$1,668,000.00

5M

$2,299,000.00

10M

$3,340,000.00

15M

$4,090,000.00


* Corresponding per unit (Channel) royalty in the pre-paid fee licensing scheme. Not available on a per unit (Channel) basis.

 

Upgrade Fees for Prepaid Option

Maximum number ofChannels sold

Upgrade fee to be paid G.729

50,000-100K

$68,445.00

100K-200K

$111,345.00

200K-500K

$293,000.00

200K-1M

$638,000.00

200K-3M

$1,729,000.00

200K-5M

$2,604,000.00

200K-10M

$4,125,000.00

200K-15M

$4,895,000.00

500K-1M

$350,000.00

500K-3M

$1,400,000.00

500K-5M

$2,241,000.00

500K-10M

$3,699,000.00

500K-15M

$4,432,000.00

1M-3M

$1,040,000.00

1M-5M

$1,845,000.00

1M-10M

$3,241,000.00

1M-15M

$3,936,000.00

3M-5M

$840,000.00

3M-10M

$2,173,000.00

3M-15M

$2,831,000.00

5M-10M

$1,445,000.00

5M-15M

$2,065,000.00

10M-15M

$954,000.00

Amendment To Pricing Scheme

Flexibility to amend in time the pricing scheme licensed from:

  • Unit royalties to pre-paid option

With the possibility to deduct from the new payment the royalties paid under the previous scheme at the percentages indicated below:

  • During Year 1: 100%

  • During Year 2: 80%

  • During Year 3: 60%

  • During Year 4 : 0%

 

To obtain further details, please contact us