- Licensors are members of the Administrative Committee (AdCom) and agree to participate in the business discussions and decisions of the HEVC Advance pool.
- Licensors that make and/or sell HEVC Products which fall within the terms of the HEVC Advance PPL must be Licensees.
- Initial Licensor term continues until the end of 1st License renewal term (i.e., 12/31/2030 for new Licensors). This provides predictability for Licensees and Licensors.
- Licensors have obligation, upon request by an implementer, to offer bilateral licenses on reasonable terms agreeable to both the Licensor and implementer.
- Licensors agree to maintain confidentiality of the business discussions of the HEVC Advance pool.
- New Licensors are added at the reasonable discretion of the Licensing Administrator.
License Scope and Grant
- The PPL grant is to infringed patent claims that are essential to any of Versions 1 through 7 of the HEVC Standard:
- “HEVC Standard” – means (a) all versions through Version 7 of ISO/IEC 23008-2 MPEG-H Part 2 and ITU-T Recommendation H.265; and (b) such other profiles, extensions and versions thereof, and new standards separated therefrom (e.g., SEI messaging), as are adopted by the applicable standards setting organization(s) and explicitly added to this definition upon written notice by Licensing Administrator.
- Amendments to the definition of the HEVC Standard, and therefore to the scope of the PPL license grant, are approved upon Licensing Administrator’s recommendation unless vetoed by the AdCom.
- Licensors grant the Licensing Administrator a non-exclusive license to all their essential HEVC patent claims, with the right to grant sublicenses under the HEVC Advance PPL.
- Licensors must submit their HEVC patents to an independent Patent Evaluator to determine whether they include at least one claim that is essential to the HEVC Standard.
- When the Patent Evaluator determines a Licensor’s patent is an HEVC Standard Essential Patent (“SEP”), it is added to the HEVC Advance Patent List.
- Points are assigned to HEVC SEPs on the patent list; the assignment of points are subject to limits on how many points any patent family (with a common priority application) can accrue.
- Each Licensor receives an equal, annual allocation of 5% of Gross Collections, up to a cap of $125,000 (reduced if a Licensor joins during the year).
- Royalties for HEVC Products implemented in devices are allocated to Licensors with patents in the country/territory of Sale and country/territory of manufacture.
- Royalties for HEVC Content on Digital Media Storage are allocated to Licensors with patents in the country/territory of Sale.
- Net Collections for Distribution are allocated to Licensors based on the Licensor’s point percentage in each country/territory.
- Licensing Administrator may propose litigation to the AdCom, which proceeds unless disapproved by a majority vote of the AdCom.
- Each Licensor has the option to participate in each litigation, subject to a maximum number of plaintiffs as determined by the Licensing Administrator.
- Patents asserted in litigation are selected by counsel and Licensing Administrator per guidelines approved by the Licensing Administrator, counsel, and participating Licensors.
- Patents in litigation receive an additional patent point share and a special revenue allocation if recommended by the Licensing Administrator (and not vetoed by the AdCom).
- A litigation fund is maintained to support approved actions.