TECHNICOLOR_REGISTRATION_DOCUMENT_2017

- 1 PRESENTATION OF THE GROUP Organization & business overview

Most patent license agreements were structured on a royalty-bearing basis, while others were structured on a lump sum basis or a combination thereof. Upon entering into a new patent license agreement, the licensee typically agreed to pay consideration for sales made prior to the effective date of the license agreement ( i.e. , past patent royalties) and also agreed to pay royalties or license fees on licensed products sold during the term of the agreement. In circumstances where Technicolor received consideration for past patent royalties or for standards on which the Group stopped working for matured technologies, Technicolor recognized such payments as revenue in the period in which the patent license agreement was signed.

Rather than Licensing individual patents, Technicolor’s Licensing policy has always been to grant the right to use the patent portfolio as applicable to particular licensed products, providing licensees with the ability to understand their rights on a product-centric basis. Licensing agreements were usually renewable and had a typical duration of five years. In addition to supporting Licensing programs, Technicolor always sought protection of its operating businesses by building a strong exclusive and defensive portfolio.

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TECHNICOLOR

REGISTRATION DOCUMENT 2017