With China aggressively pushing analog-to-digital TV conversion, a major DTV alliance is being formed in the country with the goal of developing intellectual property that will help reduce patent payments to the United States, Japanese and European companies.

The alliance brings together 13 top Chinese TV manufacturers, including Haier, Changhong, Hisense, SVA, Shinco and Skyworth. It will be led by the China Video Industry Association (CVIA).

China is the world's largest TV market, with more than 350 million households. It also is the largest TV producer, churning out 40 million units annually. By 2009, nearly half of its production will shift from CRTs to advanced digital LCD and plasma TVs. The average royalty fee is $20 per unit, meaning that China could save hundreds of millions in fees if the alliance succeeds.

The country's standards body approved a homegrown terrestrial DTV transmission technology last month, saying broadcasts would begin next August. It has also been aggressively promoting digital cable TV for some time. Overall, China wants to transition terrestrial and cable TV viewers to digital signals by 2015.

The new alliance is expected to draft DTV terminal and IPTV terminal standards. The goal is to establish China's own TV patent pool, which may help companies negotiate cross-licensing agreements with foreign companies.

Source:佚名