AVC Patent Prtfli License Briefing* V02/13/18 *This presentatin is fr infrmatin purpses nly. Actual license agreements will prvide the nly definitive and reliable statement f license terms.
Objectives Offer an alternative license fr the cnvenience f users enabling them t acquire patent rights necessary fr the AVC/H.264 standard frm multiple patent hlders in a single transactin as an alternative t negtiating licenses with each f them individually Align with AVC prduct value chain Enhance use f AVC acrss different business mdels Caps t prvide cst predictability Threshld levels t encurage early-stage adptin and minimize impact n lwer vlume users 2
Cverage Pursuant t Sectin 1.13 f the AVC Patent Prtfli License, AVC Standard shall mean the vide standard as defined in the fllwing dcuments: I. ISO/IEC 14496-10:2008, 4th Editin (2008-09-15) fr all prfiles specified therein, II. nly the prtins f Annex H f ISO/IEC 14496-10:2010, 6th Ed., Dec. 15, 2010 (and the parts f: (a) clauses 2-9, and (b) Annexes A, B, C, D, and E f ISO/IEC 14496-10:2010, 6th Ed., Dec. 15, 2010 referenced by such prtins f Annex H) describing: (i) Multiview High Prfile signals cntaining nly a single view, (ii) Stere High Prfile signals cntaining nly a single view, (iii) decding Multiview High Prfile signals cntaining nly a single view, and (iv) decding Stere High Prfile signals cntaining nly a single view. III. ISO/IEC 14496-10:2014, 8th Editin (2014-09-01) fr all prfiles specified in: (a) Clauses 0-9, and (b) Annexes A, B, C, D, E, F, and G theref, and IV. nly the prtins f (A) Annex H f ISO/IEC 14496-10:2014, 8th Editin (2014-09-01) (and the parts f: clauses 2-9, and Annexes A, B, C, D, and E f ISO/IEC 14496-10:2014, 8th Editin, (2014-09-01) referenced by such prtins f Annex H), (B) Annex I f ISO/IEC 14496-10:2014, 8th Editin (2014-09-01) (and the parts f: clauses 2-9, and Annexes A, B, C, D, E, F, G, and H f ISO/IEC 14496-10:2014, 8th Editin, (2014-09-01) referenced by such prtins f Annex I) and (C) Annex J f ISO/IEC 14496-10:2014, 8th Editin (2014-09-01) (and the parts f: clauses 2-9, and Annexes A, B, C, D, E, F, G, H, and I f ISO/IEC 14496-10:2014, 8th Editin, (2014-09-01) referenced by such prtins f Annex J) describing: 3
Cverage (cnt d) i. Multiview High Prfile signals cntaining nly a single view, ii. decding Multiview High Prfile signals cntaining nly a single view, iii. Stere High Prfile signals cntaining nly a single view, iv. decding Stere High Prfile signals cntaining nly a single view, v. MFC High Prfile signals cntaining nly a single view, vi. decding MFC High Prfile signals cntaining nly a single view, vii. Multiview Depth High Prfile signals cntaining nly a single view, viii. decding Multiview Depth High Prfile signals cntaining nly a single view, ix. Enhanced Multiview Depth High Prfile signals cntaining nly a single view, and x. decding Enhanced Multiview Depth High Prfile signals cntaining nly a single view. Fr avidance f dubt, this definitin f AVC Standard in paragraphs I, II, III, and IV is intended t include the encding and decding f signals with nly a single view, which are a subset f the (a) Multiview High Prfile, (b) Stere High Prfile, (c) MFC High Prfile, (d) Multiview Depth High Prfile, and (e) Enhanced Multiview Depth High Prfile, and t exclude the encding and decding f signals with multiple views, which are a subset f the (a) Multiview High Prfile, (b) Stere High Prfile, (c) MFC High Prfile, (d) Multiview Depth High Prfile, and (e) Enhanced Multiview Depth High Prfile. 4
Cverage Each patent is essential t the AVC 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 5
Cverage Attachment 1 t the License is updated regularly See http://www.mpegla.cm/main/prgrams/avc/page s/patentlist.aspx New Licensrs and essential patents may be added at n additinal ryalty during the current term; cverage fr entire term 6
7 Current Patent Owners Essential Patent Hlders currently include: Apple Inc. CableTelevisin Labratries, Inc. Cisc Systems Canada C. Cisc Technlgy, Inc. Dlby Internatinal A.B. Dlby Labratries Licensing Crpratin Electrnics and Telecmmunicatins Research Institute (ETRI) Fraunhfer-Gesellschaft zur Ferderung der angewandten Frschung e.v. Fujitsu Limited GE Vide Cmpressin, LLC Gd Kaisha IP Bridge1 Ggle Inc. HP Inc. JVC KENWOOD Crpratin Kninklijke Philips N.V. Krea Advanced Institute f Science and Technlgy (KAIST) LG Electrnics Inc. Maxell, Ltd. *Up t and thrugh date f last patent expiratin Micrsft Crpratin Mitsubishi Electric Crpratin NEC Crpratin NEWRACOM, Inc.* NTT DOCOMO, Inc. Nippn Telegraph and Telephne Crpratin (NTT) Orange SA* Panasnic Crpratin Plycm, Inc. Rbert Bsch GmbH Samsung Electrnics C., Ltd. Sharp Crpratin Siemens AG Sny Crpratin Tagivan II, LLC Telefnaktieblaget LM Ericssn The Trustees f Clumbia University in the City f New Yrk* Tshiba Crpratin Vidy, Inc. ZTE Crpratin*
8 AVC/H.264 License Terms Cdec Manufacture and Sale Prducts sld t end users and OEM fr PC but nt part f OS (decder, encder r prduct cnsisting f ne decder and ne encder = unit ) 0-100,000 units/year = n ryalty (available t ne legal entity in an affiliated grup) US $0.20 per unit after first 100,000 units/year Abve 5 millin units/year, ryalty = US $0.10 per unit Enterprise cap: $3.5M per year 2005-2006, $4.25M per year 2007-08, $5M per year 2009-10, $6.5Mper year 2011-2015; $8.125M in 2016 and $9.75M per year in 2017 thrugh 2020 An Enterprise selling branded OEM fr PC OS may pay fr its custmer 0-100,000 units/year = n ryalty (available t ne legal entity in an affiliated grup) US $0.20 per unit after first 100,000 units/year Abve 5 millin units/year, ryalty = US $0.10 per unit Enterprise cap: $3.5M per year 2005-2006, $4.25M per year 2007-08, $5M per year 2009-10, $6.5M per year 2011-2015; $8.125M in 2016 and $9.75M per year in 2017 thrugh 2020 Includes right t manufacture and sell AVC encders and decders with the right f End Users t use them fr persnal and cnsumer (including internal business) purpses withut remuneratin but nt fr ther uses Ryalties begin January 1, 2005
AVC/H.264 License Terms Participatin Fees Where End User pays fr AVC Vide Subscriptin (nt limited by title) 100,000 r fewer subscribers/yr = n ryalty; > 100,000 t 250,000 subscribers/yr = $25,000; >250,000 t 500,000 subscribers/yr = $50,000; >500,000 t 1M subscribers/yr = $75,000; >1M subscribers/yr = $100,000 Title-by-Title - 12 minutes r less = n ryalty; >12 minutes in length = lwer f (a) 2% r (b) $0.02 per title Where remuneratin is frm ther surces Free Televisin - (a) ne-time $2,500 per transmissin encder r (b) annual fee starting at $2,500 fr > 100,000 HH rising t maximum $10,000 fr >1,000,000 HH Internet Bradcast AVC Vide (nt title-by-title, nt subscriptin) n ryalty fr life f the AVC Patent Prtfli License Enterprise cap: $3.5M per year 2006-07, $4.25M per year 2008-09, $5M per year 2010, $6.5M per year 2011-2015; $8.125M in 2016 and $9.75M per year in 2017 thrugh 2020 Ryalties begin January 1, 2006 9
Term Renewable fr successive 5-year perids fr the life f any Prtfli patent n reasnable terms and cnditins (current term thrugh December 31, 2020) Rate Prtectin n Renewal ryalty rates fr specific license grants will nt increase by mre than 10% at renewals* * Annual ryalty caps are nt subject t the 10% limitatin 10
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