MPEG-4 Visual Patent Portfolio License Briefing*

Transcription

1 MPEG-4 Visual Patent Prtfli License Briefing* V12/11/17 *This presentatin is fr infrmatin purpses nly. Actual license agreements will prvide the nly definitive and reliable statement f license terms.

2 Objectives 2 Offer an alternative license fr the cnvenience f users enabling them t acquire patent rights necessary fr the MPEG-4 Visual (part 2) Standard frm multiple patent hlders in a single transactin rather than negtiating licenses with each f them individually Align with real-wrld flw f MPEG-4 cmmerce Apprtin reasnable ryalties thrughut MPEG-4 value chain Enhance use f MPEG-4 acrss different business mdels Caps t prvide cst predictability Threshld levels t encurage early-stage adptin and minimize impact n lwer vlume users Alternative ryalty payment ptins Give new business mdels time t emerge and mature

3 Cverage MPEG-4 Visual (Part 2) Standard prfiles cvered by Prtfli patents: Simple, cre, main, simple scalable, N-bit, basic animated texture, scalable texture, simple FA, advanced real time simple, cre scalable, advanced cding efficiency, advanced cre, advanced scalable texture, simple FBA, hybrid, advance simple, fine granularity scalable, simple studi and/r cre studi prfiles As defined in ISO/IEC :2001 [Part 2 Visual dated ], :2001/Amd.1:2002 [Studi prfile dated ], r :2001/Amd.2:2002 [Streaming vide prfile dated ] 3

4 Cverage Each patent is essential t the MPEG-4 Visual (Part 2) standard Specific implementatins fr which there are cmpetitive alternatives nt included Patent hlders submitted patents fr evaluatin f their essentiality by independent patent experts Wrldwide cverage (including essential cunterparts) Licensrs include all essential patents 4

5 Cverage Mre patents in the evaluatin pipeline Attachment 1 t the License is updated regularly See (Current Pls, MPEG-4 Visual, Patent List) New Licensrs and essential patents may be added at n additinal ryalty during the current term; cverage fr entire term 5

6 Current Patent Owners 6 Essential Patent Hlders currently include: British Telecmmunicatins plc* CableTelevisin Labratries, Inc. Calmare Therapeutics Incrprated* Cann, Inc.* CIF Licensing, LLC* Dlby Internatinal AB* Dlby Labratries Licensing Crpratin Fujitsu Limited* GE Technlgy Develpment, Inc. Ggle Inc. Hitachi, Ltd. KDDI Crpratin* Kninklijke Philips N.V. JVC KENWOOD Crpratin* (frmerly Victr Cmpany f Japan, Limited) LG Electrnics Inc. *Up t and thrugh date f last patent expiratin Micrsft Crpratin* Mitsubishi Electric Crpratin Nippn Telegraph and Telephne Crpratin (NTT) Oki Electric Industry C., Ltd.* Orange SA* Panasnic Crpratin Pantech Inc. Rbert Bsch GmbH Samsung Electrnics C., Ltd. SANYO Electric C., Ltd.* Sharp Crpratin Siemens AG Sny Crpratin Sun Patent Trust Telenr ASA* Tshiba Crpratin ZTE Crpratin

7 MPEG-4 Visual License Participatin Fees Where End User pays Subscriptin Title-by-Title Decder/Encder Manufacturers Free Internet Bradcast* Free Televisin Participatin Fees where Remuneratin is frm Other surces 7 * N ryalty thrugh the current term f the License (ending December 31, 2018)

8 MPEG-4 Visual License Terms: Decders and Encders Decders sld t end users and/r as Fully Functining fr PCs 0-50,000 decders/year = n ryalty (available t ne legal entity in an affiliated grup) US $0.25* per decder after first 50,000 decders/year Annual cap per Legal Entity: $1M per year prir t 2009; $1.1M in 2009; $1.2M in 2010; $1.25M after 2010 Encders sld t end users and/r as Fully Functining fr PCs 0-50,000 encders/year = n ryalty (available t ne legal entity in an affiliated grup) US $0.25* per encder after first 50,000 encders/year Annual cap per Legal Entity: $1M per year prir t 2009; $1.1M in 2009; $1.2M in 2010; $1.25M after 2010 Enterprise cap - $3M per year prir t 2009; $3.3M in 2009; $3.6M in 2010; $3.75M after 2010 Includes make, sell and limited right f persnal cnsumer use (e.g., in cnnectin with a vide telecnference r mbile messaging) Ryalties payable n prducts frm January 1, *A licensee may elect t pay US $0.24 fr every prduct whether r nt manufactured r sld in a patent cuntry withut reprting cuntry f manufacture and cuntry f sale

9 MPEG-4 Visual License Terms: Participatin Fees 9 Where End User pays fr MPEG-4 Vide Title-by-Title - 12 minutes r less = n ryalty; >12 minutes in length = lwer f (a) 2% f first Arm s-length Sale r (b) $0.02 per title. Licensees are (a) replicatrs f physical media and (b) direct sellers f ther media. Subscriptin (nt Title-by-Title): 0-100,000 subs/year = n ryalty; >100, ,000 subs/year = $25,000; >250, ,000 subs/year = $50,000; >500,000-1M subs/year = $75,000; >1M 5M subs/year = $100,000; >5M 25M subs/year = $200,000; >25M subs = $300,000 Where remuneratin is frm ther surces Free Televisin (nt Title-by-Title, Subscriptin r Free Internet Bradcast) - ne-time fee f $2,500 per transmissin encder Free Internet Bradcast (nt Title-by-Title r Subscriptin) n ryalty during the current term (thrugh 2018; nt greater than Free Televisin thereafter) Enterprise cap - $3M per year prir t 2009; $3.3M in 2009; $3.6M in 2010; $3.75M after 2010 Ryalties payable n prducts frm January 1, 2004

10 Term Current Term thrugh December 31, 2018 Renewable n reasnable terms and cnditins fr successive 5-year perids fr the useful life f any Prtfli patent Rate Prtectin n Renewal ryalty rates will nt increase by mre than 25% fr similar license grants (except fr Free Internet Bradcast*) *See Sectins and 6.1 f the MPEG-4 Visual Patent Prtfli License 10

11 Other Imprtant Prvisins Mst Favrable ryalty rates clause Licensee data is prtected as cnfidential Grant-back n essential patents similar in scpe t license grants N marking requirements 11