DVD equipment producers and copyright organizations are expected to reach an agreement under which makers will raise wholesale prices of their DVD recording machines and discs by 1 percent to cover the cost of paying royalties to the organizations, industry sources said Friday.
Royalties will be paid to organizations such as the National Association of Commercial Broadcasters in Japan, with a limit to be set at 1,000 yen per unit, they said. The organizations were concerned about the possibility of rampant piracy of their intellectual property rights.
Unlike videocassette recorders -- which use an analog format -- DVD recording machines use a digital format that reproduces high-definition images. The agreement, which would settle the compensation issue, is expected to prompt makers of DVD-related products to promote sales of DVD devices -- the next generation of recording equipment.