Facts About HD Radio Broadcaster Licensing
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. Any questions about licensing should be directed to:
| Paul Dadian | Kitsa Lee |
| Broadcast Sales Manager | Broadcast Business Manager |
| Phone: (513) 200-2213 | Phone: (443) 539-4333 |
| dadian@ibiquity.com |
Terms of licensing include:
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. As indicated by the chart below, the fee is discounted through June, 2008 based on the effective date of the license and provided the station meets the corresponding conversion deadline. The rights to broadcast certain data associated with main channel audio (Main Channel Primary Data), such as call letters, artist/song title, program, etc., is included in the Main Channel Audio license fee.
| Licensing Deadline | Main Channel Licensing Fee | Digital Conversion Deadline |
| June 30, 2008 | $15,000 | |
| After June 30, 2008 | $25,000 | None |
Note: iBiquity is offering broadcasters a licensing incentive through June 30, 2008. License any number of stations by June 30th deadline, and the 12/31/2008 conversion deadline is waived.
3. Supplemental Channel Audio Fees. The fee for transmitting digital audio 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.
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 Auxilary Data is also based on a revenue sharing model. Station pay 3% of incremental net revenue derived from Auxiliary Data. Payments are made on a quarterly basis.
5. Conversion Timelines. To receive the benefits of discount licensing in the next few years, stations are required to use commercially reasonable efforts to convert to HD Radio technology as indicated in #2 above.
6. 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.
7. 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.
8. Revisions and Upgrades. iBiquity Digital will not charge additional license fees for software Revisions (new releases intended to correct errors in functionality). iBiquity Digital will not charge additional license fees for software Upgrades (new versions that contain new features or additional functionality) through December 31, 2006. After that date, 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.
