What Do We License?

We license VVC Decoders and VVC Encoders in Consumer VVC Products, whether made available in devices, software, or through Cloud Based Services, and VVC Content on Digital Media Storage.

Our royalty rates are based on four product categories:

1. Mobile Devices, including Mobile Phones and Other Mobile Devices (e.g., tablets, laptop PCs)
2. Connected Home and Other Devices, including Other Consumer Devices (e.g., set-top boxes, game consoles, desktop PCs, non-4K UHD+ TVs, digital video recorders, digital cameras, video surveillance cameras, video conferencing equipment, medical imaging devices, digital signs) and VVC Software
3. 4K UHD+ Television/Displays (e.g., UHD-Capable TVs, projectors, VR/AR headsets)
4. VVC Content on Digital Media Storage, including Commercial VVC Content stored on physical digital media (e.g., Blu-ray discs, external hard drives)

---

VVC Advance is primarily focused on licensing VVC Decoders and/or VVC Encoders installed in devices or software at the time of First Sale.

We seek to be paid one royalty per device/software copy on First Sale.  Multiple VVC Decoders and/or VVC Encoders installed in a device/software at First Sale incur ONLY a single royalty fee at the highest applicable rate for the device/software, with limited exceptions:

• Royalties are due for VVC Software Sold separately from a device and for Preloaded VVC Pay-To-Use Software/Content (i.e., software/content on a device at First Sale but for which a separate payment is due for use or continued use)

• Royalties are due annually (or as otherwise agreed) per authorized user for VVC Decoders and/or Encoders used to provide or made available for use through Cloud-Based Services

What Patent Rights Are Licensed?

VVC Advance grants licenses to Licensees only for the Practiced Claims of the Licensor’s VVC Standard Essential Patents (i.e., claims of such patents that are essential to practice of the VVC Standard, and that would be infringed by the Licensee’s licensed activities).

• The VVC Advance Patent List identifies Licensor patents that include one or more claims found to be essential to the VVC Standard by our independent Patent Evaluators

• The VVC Advance Patent List identifies the relevant section(s) of the VVC Standard to which the essential patent claims map

All Practiced Claims of our Licensors’ VVC Standard Essential Patents are covered by the license grant, even those claims in a Licensor’s patents that have not yet been evaluated by our independent Patent Evaluators.

Who May Need a License⁽¹⁾?

Licenses are granted to parties that Sell Consumer VVC Products:

• Parties that Sell substantially completed devices or software (i.e., ready for sale to an End User), which items incorporate one or more VVC Decoders and/or VVC Encoders

• Parties that provide Cloud-Based Services (i.e., that (a) provide End Users with access to VVC Decoders and/or VVC Encoders through the internet or another public or private network, or (b) process content at the End User’s request using VVC Decoders and/or VVC Encoders, where the output is returned to the End User for distribution or use)

Licenses are granted to parties that Sell VVC Content on Digital Media Storage:

• Parties that Sell VVC Content on Physical Digital Media Storage (i.e., Commercial VVC Content that is stored on an optical disc, or on other physical media) to End Users

We Do NOT License:

• Commercial VVC Excluded Products (i.e., products designed or marketed primarily for encoding and/or transmitting Commercial VVC Content or providing Cloud-Based Services), except for video or image recording/capture devices (e.g., cameras and camcorders)

• The Transmission of VVC Content by non-physical means (e.g., satellite, broadcast, cable, streaming, download, or via the internet)

Footnotes:

⁽¹⁾ Access Advance reserves the right to seek licenses from any party infringing VVC Standard Essential Patents of our Licensors for all their infringing products.  Our primary focus, however, is to license (a) parties selling Branded products to End Users directly or through a Chain of Distribution, and (b) OEM’s and other parties that customarily handle licensing obligations for their customers in certain market segments.