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About HD Radio Broadcaster Licensing

Licensing Facts, Fees and Terms

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The Facts

AM and FM stations in the United States and its territories planning to convert to HD Radio Technology must license the technology directly from iBiquity Digital. The license grants the station the right to use iBiquity Digital’s HD Radio patents, software and trademarks. Licenses must be in place before a station receives broadcast equipment that contains iBiquity Digital’s intellectual property from manufacturers or resellers.

All stations are offered the same licensing terms. Click here for a Station License Agreement, only available through iBiquity Digital’s website or by contacting iBiquity Digital. Current discounted rates are listed on page 12. Any questions about licensing should be directed to:

Discounted Broadcaster License Fee

Based upon the tremendous broadcaster support HD Radio Technology has enjoyed over the past year, iBiquity Digital has created several new flexible, cost-effective licensing options to make upgrading easier. In addition, we have heavily discounted our standard $25,000 one time only license fee to encourage stations not to put off reaping the benefits of HD Radio technology any longer.

Radio is now the last entertainment medium to convert from analog to digital, and we want to do all we can to help broadcasters upgrade and deliver the highest quality listening experience to their listeners and generate incremental revenue from new digital offerings.

Licensing Terms

1. Duration.  The term of the agreement is perpetual.
    
2. Main Channel Audio Fees.  iBiquity Digital defines the digital broadcast of the existing analog program as “Main Channel Audio.” A one time fee is paid for the rights to broadcast the Main Channel Audio. The rights to broadcast certain data associated with main channel audio (Main Channel Primary Data), such as call letters, artist/song title and program, is included in the Main Channel Audio license fee. Currently, our standard station license fee of $25,000 is being discounted through December 31, 2010 as follows:
    

   	♦ Stations that enclose payment with their signed contracts pay a license fee of $10,500.
   	♦ Stations that we invoice at our standard net 30 payment terms pay a license fee of $11,000.
   	♦ Stations that sign up for our 12 month payment plan terms pay a license fee of $12,500.
   	— This would be a “Business to Business” electronic payment, initiated by us.  — We electronically debit your business banking account monthly in 12 equal payments over 12 months.

3. Supplemental Channel Audio Fees for HD-2 and Other Multicast Channels.  The fee for transmitting digital audio channels (HD-2 and other multicast channels) in addition to the main channel is based on a revenue sharing model. Stations pay 3% of incremental net revenue derived from any supplemental audio services made possible with HD Radio Technology with a minimum annual fee of $1,000 per audio channel, paid quarterly in arrears.

4. Data Fees.  Any data made possible with HD Radio Technology other than Main Channel Primary Data are classified as Auxiliary Data. The fee for transmitting Auxiliary Data is also based on a revenue sharing model. Stations pay 3% of incremental net revenue derived from Auxiliary Data. Payments are made on a quarterly basis. 

5. Operational Requirements.  To promote consumer acceptance of the technology, stations are required to synchronize the analog and digital Main Channel Audio by delaying the analog audio several seconds.

6. Assignment.  The license can be assigned to another station only in the case where the station and other related assets are assigned or transferred to another party.

7. Revisions and Upgrades.  iBiquity Digital will not charge additional license fees for software Revisions (new releases intended to correct errors in functionality). Stations may license any Upgrades that may be released periodically by electing to pay an annual fee or the prevailing rate at the time of release.