Video Distribution Patent Pool:

Additional Royalty Rate Details

Tier Determination for Multiple Video Streaming Services

Each distinct branded offering is treated as a separate Video Streaming Service.  For example, in the case of a hypothetical company, Super Video Inc., providing three Video Streaming Services branded Alpha, Beta, and Gamma, each of Alpha, Beta and Gamma will be treated as a separate Video Streaming Service.

The Tier determination for Licensees will be based on the sum of Monthly Active Video Users, Monthly Video Subscribers and Semi-Annual Streaming Revenue for each separate Video Streaming Service offered by the Licensee or its Affiliates.

If the same individual is a Monthly Active Video User and/or a Monthly Video Subscriber across more than one Video Streaming Service, that individual will count as one Monthly Active Video User and/or one Monthly Video Subscriber for each of those Video Streaming Services (e.g., if Super Video Inc. transmits content to an individual through all three services, Alpha, Beta, and Gamma, the individual will count as a Monthly Active Video User for each of the three services).

Royalty Adjustment “Ladder” during Startup Phase

The VDP Pool adjusts the semi-annual royalty amount depending on the number and assigned score of Licensors that have joined the VDP Pool at the end of each Semi-Annual period. Each Licensor receives a score based on factors such as:

  • Number of patents owned
  • Reported contributions
  • History of patent enforcement
  • Ecosystem influence

Once the sum of the scores of all Licensors participating in the VDP Pool is equal to or exceeds 75 points, then the full royalty (as outlined above) will apply. Otherwise, it will be adjusted proportionally.

  • For example, if the pool has 60 points on the “Ladder”, the rates will be proportionally adjusted to 60/75 = 80% of the full royalty rates.

As of June 30, 2025, the score of all Licensors was 55.5.

Term and Duration of Early Licensee Incentive

Initial Term is through 2030. Licensees have the right to terminate at the end of 2030 or continue to be licensed.

Licensees who join on or before June 30, 2026 will receive a 12.5% discount on Semi-Annual Royalties during the Initial Term and the first Renewal Term through 2035.

Semi-Annual Reporting Requirements

  • Average number of Monthly Active Video Users by country/territory for each Video Streaming Service
  • Average number of Monthly Subscription Video Users by country/territory for each Video Streaming Service
  • Streaming Revenue for all Video Streaming Service
  • Hours of video distributed to each country in each of the four codecs, which will be used to allocate royalty to each of the four codecs