−Removed: Founded in 1965, Dolby Laboratories is in the business of improving the entertainment experience by inventing and innovating technology that advances audio and video.
+Added: Founded in 1965, we are in the business of improving entertainment experiences by inventing and innovating technologies that advance audio and video capture, transmission, and playback.
We enable highly compelling experiences in movies and TV shows, music, sports and more by meeting the needs of content creators, distributors, and consumer electronics manufacturers.
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Our strength and durability stem from our ability to combine our expertise in signal processing with our close relationships with artists and other industry experts to continually bring to the creative community technology that allows them to express themselves in new and compelling ways.
−Removed: Dolby is synonymous with high quality entertainment from a consumer perspective and has become critical to makers of consumer electronic devices as our technology is an important component of the creation and delivery of audio and video content.
+Added: Dolby is synonymous with high-quality entertainment from a consumer perspective and has become critical to makers of consumer electronic devices as our technology is an important component in the creation and delivery of audio and video content.
While some of our technology represents relatively elemental functions like audio signal compression that enable playback, we also offer technology that is innovating in emerging categories including spatial audio and high contrast video.
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Total 100% 100% 100%
−Removed: The two primary components of our licensing business are Branded Technologies which include Branded Audio Codecs, Dolby Atmos & Dolby Vision, and Patents, which include Audio Patents and Imaging Patents.
−Removed: We generated over 90% of our revenue in fiscal 2024 by licensing branded technology and patents that enable 1,000 electronic device manufacturers to enhance the audio and visual capabilities of their products by incorporating our technology.
+Added: The two primary components of our licensing business are Branded Technologies which include Branded Audio Codecs, Dolby Atmos, and Dolby Vision, and Patents, which include Audio Patents and Imaging Patents.
+Added: We generated over 90% of our revenue in fiscal 2025 from agreements to license branded technology and patents that enable approximately 1,000 electronic device manufacturers to enable and enhance the audio and visual capabilities of their products by incorporating our technology.
Branded Technology Licensing
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A versatile, bandwidth efficient and scalable home theater grade audio codec for A/V content, DD+ is designed to deliver up to 7.1 channels of surround sound across multiple platforms and content types.
−Removed: It is also able to carry channel-based configurations.
• Dolby AC-4.
Dolby AC-4 is an audio codec that uses cutting edge compression to deliver equivalent experiences at half the bitrate of DD+, its predecessor.
−Removed: Dolby AC-4 matches the delivery method with the optimal configuration, enabling encodes tailored for broadcast or streaming and catering for headphone or speaker playback.
+Added: Dolby AC-4 matches the delivery method with the optimal configuration, enabling encodes tailored for broadcast or streaming and catering to headphone or speaker playback.
It is also capable of delivering enhanced, user-configurable, and accessible experiences.
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These are annual and sometimes multiyear deals, where the value of the committed volume is generally recognized as revenue up front.
−Removed: These contract structures, as well as the occasional fixed fee contract whereby a licensee pays for unlimited units, are often selected by large customers and can also lead to variability in quarterly revenues.
−Removed: From time to time, we also generate revenue via recoveries (“recoveries”), which is revenue attributable to unlicensed or under reported distribution of devices incorporating our technologies in prior periods, usually recovered as a part of a settlement.
−Removed: Within the Results of Operations section of Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations ," revenue attributable to previous periods' usage including settlements are collectively referred to as "recoveries." Recoveries are a reoccurring element of our business and are subject to fluctuation and unpredictability.
+Added: These contract structures, as well as the occasional fixed fee contract whereby a licensee pays for unlimited units, are often selected by large customers and can also lead to variability in quarterly revenue.
We price our products based on value and volume, among other factors.
−Removed: With respect to value, the advanced features of Dolby Atmos and Dolby Vision enhance the audio and video capabilities of our CE OEM partners' products and many of those partners can charge a premium for devices that include these technologies.
+Added: With respect to value, the advanced features of Dolby Atmos and Dolby Vision enhance the audio and video capabilities of our consumer electronics OEM partners' products and many of those partners can charge a premium for devices that include these technologies.
Branded audio codecs can be implemented standalone but are necessary components for an effective Dolby Atmos implementation.
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This dynamic manifests at a market level for device families that represent significant volume.
−Removed: For example, in 2023, there were over one billion mobile devices, 200 million TVs and 90 million cars sold according to Wards Intelligence, an Auto Research firm.
+Added: For example, in 2024, there were over one billion mobile devices, approximately 200 million TVs and, according to Wards Intelligence, an Auto Research firm, approximately 90 million cars sold.
Accordingly, ARPU for cars is higher than ARPU for TVs, which is higher than ARPU for mobile phones.
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For example, the AVC codec helped enable standard-definition streaming over the internet, while the next-generation HEVC codec optimized streaming for higher-definition formats like 4K.
−Removed: Looking forward, Dolby intends to continue to actively participate (both in standards bodies and independently) in the development of next-generation standardized audio and video technologies, and has begun in particular to explore the use of artificial intelligence in the development and use of audio and video codecs.
+Added: Looking forward, Dolby intends to continue to actively participate (both in standards bodies and independently) in the development of next-generation standardized audio and video technologies and, in particular, we are exploring the use of artificial intelligence in the development and use of audio and video codecs.
Key Current Programs
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• The pool structure naturally leads to more transparent and consistent licensing terms.
−Removed: Patent pools employ a variety of licensing revenue models, including per-unit and fixed-fee royalties, and sometimes include royalty caps or committed volume commitments in exchange for a lower price per unit.
+Added: Patent pools employ a variety of licensing revenue models, including per-unit and fixed-fee royalties, and sometimes include royalty caps or committed volume arrangements in exchange for a lower price per unit.
The fees charged for licensing pooled patents are initially determined by market forces - a careful balance of the need to compensate innovators with the desire to develop an active licensee base.
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Royalty share among the pool licensors is determined based on the value of the patents each licensor contributes to the pool, as governed by allocation rules negotiated among the pool licensors.
−Removed: We operate as licensors in patent pools administered by several patent pool administrators including Access Advance, Sisvel, Via Licensing Alliance LLC ("Via LA") and Vectis.
+Added: We operate as licensors in patent pools administered by several patent pool administrators including Access Advance LLC ("Access Advance"), Sisvel, Via Licensing Alliance LLC ("Via LA") and Vectis.
We are a majority stockholder and licensor in Via LA, which we co-own with Philips and Mitsubishi.
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We also generate revenue from Via LA administration fees.
+Added: We also generate licensing revenue via recoveries, which is revenue attributable to unlicensed or under-reported distribution of products incorporating our technologies in prior periods.
+Added: Recoveries arise in the context of both branded technology licensing and patent licensing, and usually result from a settlement following a licensee audit under an existing license agreement, or as part of back-royalties paid in connection with a license agreement with a new licensee.
+Added: Within the Results of Operations section of Part II, Item 7 " Management's Discussion and Analysis of Financial Condition and Results of Operations ", revenue attributable to previous periods' usage including settlements are collectively referred to as "recoveries." Recoveries are a recurring element of our business and are subject to fluctuation and unpredictability.
We leverage our universe of creative talent to bring the highest quality experiences to our exhibitor partners.
−Removed: Dolby Cinemas are Premium Large Format (PLF) cinemas that deliver a Dolby branded premium cinema offering with Dolby Vision, Dolby Atmos, and a proprietary Dolby theater design.
+Added: Dolby Cinemas are PLF cinemas that deliver a Dolby branded premium cinema offering with Dolby Vision, Dolby Atmos, and a proprietary Dolby theater design.
We typically provide Dolby Cinema exhibitors with the requisite Dolby technology at minimal or no upfront cost and generate revenue from these sites through a share of box office receipts, which we recognize as licensing revenue.
Dolby Cinemas deliver a unique, high-end theatre experience, that is different from competing PLFs as well as our exhibitor partner’s other theaters that use Dolby manufactured and distributed cinema hardware, including those that may utilize Dolby Atmos and/or Dolby Vision.
−Removed: PRODUCTS & SERVICES
+Added: Products and Services
+Added: Cinema Products and Services
We design and manufacture audio, imaging, accessibility, and other hardware and software solutions primarily for the cinema, with occasional applications in the television, broadcast, and live entertainment industries.
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In addition, we offer various services to support theatrical and television production for cinema, broadcast, and home entertainment, including equipment training and maintenance, mixing room alignment, equalization, as well as audio, color, and light image calibration.
−Removed: We also provide PCS for products sold and equipment installed at Dolby
−Removed: Cinema theaters operated by exhibitor partners and support the implementation of our technologies into products manufactured by our licensees.
+Added: We also provide PCS for products sold and equipment installed at Dolby Cinema theaters operated by exhibitor partners, and we support the implementation of our technologies into products manufactured by our licensees.
Revenue Generation
We generate revenue from Dolby Cinema Products by selling and leasing products to exhibitors, excluding Dolby Cinemas, and offering PCS to exhibitors .
−Removed: Dolby.io is powering the next generation of immersive, interactive, and social experiences with real-time engagement for live events, especially sports.
−Removed: Dolby.io leverages Dolby’s six decades of experience in the science of sight and sound to deliver 4K video with clarity, depth and detail via our unique content delivery architecture that ensures a high quality, synchronized viewer experience across the globe.
+Added: Dolby OptiView
+Added: Dolby OptiView (previously named Dolby.io) is powering immersive, interactive, and social experiences with real-time engagement for live events, especially sports.
+Added: Dolby OptiView leverages Dolby’s six decades of experience in the science of sight and sound to deliver video with clarity, depth and detail via our unique content delivery system which ensures a high quality, synchronized viewer experience across the globe.
This enables our customers to engage viewers effectively with near real time interaction tools that will strengthen connections and drive participation.
Revenue Generation
−Removed: Dolby.io represents a departure from our traditional distribution model which is focused on device manufacturers.
−Removed: Dolby.io is a software as a service (SaaS) product sold directly to enterprises via a consumption revenue model.
+Added: Dolby OptiView is a software as a service (SaaS) product licensed directly to enterprises via a consumption-based revenue model.
SALES AND MARKETING
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Dolby Live is a fully integrated performance venue offering live concerts in Dolby Atmos.
−Removed: We generated 93% of our revenues in fiscal 2024 by licensing technology, our brand, and patents, primarily to device manufacturers.
+Added: We generated 93% of our revenues in fiscal 2025 by licensing technology, brand, and patents, primarily to device manufacturers.
The following table presents the end market composition of revenue from our licensing business for all periods presented:
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Our base of IP assets includes patents, trademarks, copyrights, and trade secrets developed based on our technical expertise.
−Removed: As of September 27, 2024, we had approximately 27,400 issued and effective patents and approximately 5,900
−Removed: pending patent applications in more than 100 jurisdictions throughout the world, which includes patents and patent applications acquired in connection with our acquisition of GE Licensing (as defined below) and THEO Technologies ("THEO"), described in more detail in Note 15 " Business Combinations " to our consolidated financial statements.
−Removed: Our currently issued patents expire at various times through December 2047.
−Removed: Some of our patents relating to DD technologies have expired, and others will expire over the next several years.
−Removed: While in the past we derived a significant portion of our licensing revenue from our DD technologies, this is no longer the case as revenue attributed to DD technologies has declined and is expected to continue to decline.
−Removed: The primary end products where DD is widely used include automobiles, TVs, and soundbars.
−Removed: We have transitioned a number of our DD licensees to DD+ technologies, an extension of our DD technologies, whose patents generally expire later than the DD patents.
+Added: As of September 26, 2025, we had approximately 28,400 issued and effective patents and approximately 6,100 pending patent applications in more than 200 jurisdictions throughout the world.
+Added: In fiscal 2025, we were issued 4,179 new patents.
We pursue a general practice of filing patent applications for our technologies in the United States and foreign countries where our customers manufacture, distribute, or sell licensed products.
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We have multiple patents covering aspects and improvements for many of our technologies.
+Added: Our issued patents expire at various times, ranging from 2025 through 2047.
+Added: For a discussion of certain risks related to patent expiration, please refer to Part I, Item 1A “ Risk Factors ” in this annual report on Form 10-K, under the heading " Our revenue could decline if we are unable to maintain patent coverage for our technologies.
We have approximately 1,500 trademark registrations throughout the world for a variety of wordmarks, logos, and slogans.
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From time to time, OEMs have failed to report or have underreported shipments of their products that incorporate our technologies.
−Removed: We have experienced implementation licensees selling ICs with our technologies to third parties that are not system licensees.
−Removed: We anticipate that such problems will continue to occur.
+Added: We anticipate that such issues will continue to occur.
Accordingly, we have taken steps in the past to enforce our IP rights and expect to continue doing so in the future.
−Removed: Moreover, in certain countries, we have relatively few or no issued patents.
−Removed: For example, in some African and Central and South American countries, we have only limited patent protection for our technologies.
−Removed: Consequently, we may realize less revenue from those regions in the future.
−Removed: Maintaining or growing our licensing revenue in developing countries will depend in part on whether we obtain patent rights in those countries, which is uncertain.
−Removed: Further, because of the limitations of the legal systems in many countries, the effectiveness of patents obtained or that may in the future be obtained is uncertain.
RESEARCH AND DEVELOPMENT
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The goal of our research teams is to maintain leadership in all our current markets while simultaneously inventing new experiences.
−Removed: Our researchers work on every stage in the product development cycle because the end markets we serve are constantly evolving to take advantage latest innovations, and keeping our offerings on the cutting edge helps us keep our partnerships strong and productive.
+Added: Our researchers work on every stage in the product development cycle because the end markets we serve are constantly evolving to take advantage of the latest innovations, and keeping our offerings on the cutting edge helps us keep our partnerships strong and productive.
PRODUCT MANUFACTURING
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.