Exhibit 10.26.3

CONFIDENTIAL PORTIONS OF THIS DOCUMENT

HAVE BEEN REDACTED AND FILED SEPARATELY WITH

THE SECURITIES AND EXCHANGE COMMISSION

AMENDMENT NO. 3 TO LICENSING AGREEMENT

This Amendment No. 3 (“Amendment No. 3”) to Licensing Agreement is made as of
2003, August 10th by and between MedQuist Inc. (“MedQuist”), a New Jersey
corporation with its principal place of business at Five Greentree Centre, Suit
311, Marlton, NJ 08053, acting on its own behalf-and on behalf of its wholly
owned subsidiaries (direct and indirect) and Philips Speech Processing GmbH
(“Philips”), an Austrian corporation, with its registered place of business at
Triesterstrasse 64, 1101 Vienna, Austria (MedQuist and Philips. each a “Party”
and, collectively, the “Parties”).

WITHNESSETH

WHEREAS, the Parties entered into a Licensing Agreement, dated as of May 22,
2000, as amended by Amendment No. 1 of January 2002 and Amendment No. 2 of
December 2002 (as so amended, the “Licensing Agreement”) relating to the
integration and use of certain Philips speech recognition technology into
MedQuist business; and

WHEREAS, the Parties desire to amend the Licensing Agreement by modifying the
pricing and fees and expanding the license to include additional applications
subject to the terms and conditions of this Amendment No. 3;

NOW, THEREFORE, in consideration of the mutual promises contained herein, the
Parties agree as follows:

Section. Definitions.

(1)                                  Unless otherwise defined in this Amendment
No. 3, capitalized terms used in this Amendment No. 3 shall have the meanings
given to them in the Licensing Agreement.

Schedule D - Pricing

The first clause and bullet of Schedule D as amended by Amendment No. 2 is
hereby deleted and replaced with the following:

(i)            All License fees shall be based on a per payroll line basis using
the same counting algorithm as that used to calculate the pay of medical
transcriptionists, except that the

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count may be taken after the document has emerged from the Speech Recognition
engine and prior to The delivery of the document to a medical editor. A payroll
line is defined as 65 black & white characters, defined as ASCII 0-126, within
the unformatted document. This includes a maximum of two consecutive spaces from
and after December 1, 2002, the license fees for the Licensed Product will be as
follows:

·                  Service Bureau Service including Correction Services:

·                  For 2003, the lines fee will be free of charge under the
express condition that MedQuist, related to providing Service Bureau Services
with Correction Services, achieves its forecast of [***] going through its New
Transcription Platform (“NTP”) using automated speech recognition (“ASK”). If
MedQuist does not meet its forecast, then MedQuist will pay a penalty fee of
[***]. Payment will be made at end of the year 2003.

·                  For 2004 the same is valid as in 2003. The target for 2004 is
an annual run rate of [***] to be reached no later than in the month of December
2004.  If this amount is not met, MedQuist will pay Philips at the end of 2004
the amount of [***].

·                  If in 2003 or in 2004, MedQuist does not meet its forecasted
lines, then right of first refusal as said in section 2 of Amendment No. 1 and
related to Service Bureau Service including Correction Services, will be
cancelled.

·                  For 2005 and thereafter, a line fee of [***] is agreed for
all lines.

·                  The foregoing is subject to the Licensed Product scaling and
functioning as part of the NTP in a commercially viable manner at the volume
levels set forth in the above contemplated forecasts, if scaling issues inhibit
MedQuist’s ability to achieve the forecasts, the parties will negotiate in good
faith to reach a mutually acceptable compromise.

In addition, Schedule D is amended by adding the following:

·                  MedQuist will pay [***] to incorporate the features in
Appendix A into SpeechMagic V6.0, which is the next major release of
SpeechMagic.  Payment is to be made in installments in 2003 based on and subject
to achieving the mutually agreed upon milestones set forth on Appendix B.

·                  From the date PSP delivers a commercially released product to
MedQuist, MedQuist will get a 1-year exclusivity in the North American market
for the use of SpeechMagic V6.0.

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 ***  Confidential material which has been omitted and filed separately with the
Securities and Exchange Commission

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·                  On a monthly basis, MedQuist will continue to pay separately
for Philips’ a consulting services.

·                  Philips is responsible for maintenance and support
SpeechMagic.

·                  Subject to applicable law, rules and regulations, including,
without limitation, HIPAA. MedQuist will continue to supply voice and text files
to Philips during 2003 and 2004.

Except as amended by this Amendment No. 3, the Agreement shall remain in full
force and affect including, without limitation, the “bullets” in Amendment No. 2
describing “ASP with Speech Recognition” and “In house business licenses.”

PHILIPS SPEECH PROCESSING GmbH

 

MedQuist Inc.

 

 

 

By:

/s/ M.H. Wassink

 

 

By:

/s/ Ethan H. Cohen

 

Name:

M.H. Wassink

 

Name:

 

Title:

Managing Director

 

Title:

 

 

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APPENDIX A

 

#

 

Feature

1

 

Wrong speaker detection

2

 

Show occurrences of UGIs (unknown grammar items)

3

 

Fast job propagation in Context Adaptation Server

4

 

The same ‘tagging –This phrase would be tagged for adaptation

5

 

Provide enumeration tag

6

 

Context Upgrade

7

 

Increase number of users in one cluster (4,000-12,000 users)

9

 

Improvement stability, reliability

12

 

Support of subheadings (study only)*

13

 

On-going maintenance & consulting (MedQuist)

 

 

Total

 

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* PSP and MedQuist may mutually agree to substitute this feature with a
different one.

Note:  Feature numbers are not consecutive as they are derived from an earlier
list provided by PSP.

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APPENDIX B

The following is the schedule for delivery milestones for SMV6.0.

Ml 29/8 2003: Functional Spec:

 

deliverable: Functional Spec Document

 

 

 

M2 26/9 2003: Technical Spec:

 

deliverable: Technical Spec Document

 

 

 

M3 22/12 2003; Alfa version

 

deliverable: the Alfa version software

 

Payment shall be made as follows upon completion of each milestone:

[***]

[***]

[***]

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 ***  Confidential material which has been omitted and filed separately with the
Securities and Exchange Commission

 

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