HEVC advance收费标准.docx

Built into the schedule is a 10% labeling discount; if youre a TV vendor and dont display the HEVCAdvance logo, your royalty increases 10% to $1.65. Theres also a 25% compliance discount; if you dont voluntarily pay, the base price increases by 25%. Again, our TV vendor price increases from $1.50 to $1.875, plus the 10% labeling discount, since if you didnt pay, you probably didnt label. Royalties start at the date of first sale, even though you wont be able to sign a license until October 1, 2015.?These prices are about ten times higher than MPEG LA is charging?and there is no cap; MPEG LAs royalty is capped at $25 million annually. Guessing here, Apple will have sold perhaps 150 million HEVC-equipped iPhone 6 and 6 Plus phones by October 1, 2015, which means theyll have to write a check for about $120 million on October 1. Im thinking that Apple and other high volume manufacturers will challenge the royalty as too high under the Fair, Reasonable, and Non-Discriminatory (FRAND) pricing guidelines that control technologies licensed as part of a standard. Though the suit would cost $2-$4 million, its almost certainly worth it.?Most TV and mobile device manufacturers should have been reserving for additional HEVC royalties since they started manufacturing products that used the technology, though Im guessing few reserved in the price range actually set by HEVCAdvance. If not, these companies will have to add very significant additional reserves which translates to a short term financial hit.?Note that HEVCAdvance is not pursuing royalties on professional encoders and decoders, hardware or software. Consumer decoders, like those contained in browsers, will be subject to the royalty at the $1.10 rate for other devices. With no cap, the royalty essentially means well never see HEVC playback in browsers.?Content RoyaltiesThough there are content royalties for MPEG-2 and H.264 in the MPEG LA patent pools, the HEVC group inexplicably decided not to pursue content royalties