HEVC Advance Patent Pool: Where and When is a Royalty Due?

HEVC Advance Patent Pool:
Royalty Rate Structure

A royalty is due upon the Sale of a Consumer HEVC Product or HEVC Content on Digital Media Storage for which an HEVC Standard Essential Patent (listed on the HEVC Advance Patent List) is in force in either the country/territory of manufacture or the country/territory of Sale.

If there are no patents in both the country/territory of manufacture and the country/territory of Sale, then no royalties are due for Consumer HEVC Products or HEVC Content on Digital Media Storage Sold in that country/territory.

Royalty Rate Structure

Geographic Rate Differentials: Stated rates apply to the country/territory in which the Consumer HEVC Product and HEVC Content on Digital Media Storage is first Sold.

Royalty reduction (50% discount) if the First Sale is in a country/territory in Region 2 (an emerging market), except for Connected Home and Other Devices Sold at or below $80.

Region Definitions:

  • Region 1 = U.S., EU, UK, Japan, S. Korea, Australia, New Zealand, etc. See a complete list of countries/territories here.
  • Region 2 = All countries/territories outside of Region 1.

Royalty rates shown include separate and non-additive discounts for being In-Compliance and for using the HEVC Advance Trademark Logo.

Standard Rates (i.e., non-discounted rates) apply if Licensee is not In-Compliance.

Main, Main Still, and Main10 profiles + Advanced Profiles (Rext, MV-HEVC, and SHVC) + Versions 3-7 + Optional Features (e.g., SEI messages) are included in a single Per-Device Royalty (see Royalty Rates Summary).

Royalty Rate Term Increase Cap: Royalty rates and caps will not increase more than 20% for any Renewal Term.

Annual In-Compliance Royalty Caps

Multiple Cap Categories (i.e., Mobile Devices, Connected Home and Other Devices, 4K UHD+ Television/Display, and HEVC Content on Digital Media Storage), generally excluding HEVC Software.

Single Enterprise Cap for aggregate of all Categories, generally excluding HEVC Software.

Affiliates included under a Licensee’s PPL receive the benefits of the caps.

Caps apply only during those quarterly reporting and payment periods in which a Licensee and its Affiliates are In-Compliance.

All caps reset annually on January 1 of each year.

Standard Rates are not capped (i.e., royalties owed at Standard Rates do not accrue against any caps).

Annual Enterprise Credit

  • Annual Enterprise Credit of $25,000 applies to all Enterprises that owe royalties and are In-Compliance.
  • The credit is provided in four equal quarterly installments of $6,250 each.
  • Unused credit amounts do not carry over to future quarters.

Duplicate Royalties

Access Advance and its HEVC Advance Licensors have issued a Duplicate Royalty Policy to address and resolve the issue of duplicate royalties that may arise with certain HEVC Advance Licensees due to multiple program licenses, such as exists with the HEVC Advance and MPEG LA HEVC licensing programs. An explanation of this policy can be found here.