The four companies that hold most of the patents on the Digital Video Disk specification have finally reached agreement on joint licensing terms, paving the way for the players and movies to be in the stores in time for Christmas. The move mends the rift caused when Philips Electronics NV and Sony Corp broke ranks and decided to license their own patents separately from the two other major players, Toshiba Corp and Matsushita Electrical Industrial Co. Under the terms, Philips will license the patents for all four companies and royalties will be split according to an agreed formula. Sony and Philips finally agreed to merge their rival standard with that of the group led by Toshiba Corp, and are assured they will be fully involved in any development of new Digital Video Disk technology.
