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

VVC Advance Patent Pool:

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

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

Royalty Rate Structure

The VVC Advance Royalty Rates can be found here.

Geographic Rate Differentials: Stated rates apply based on the country/territory in which the Consumer VVC Product and VVC Content on Digital Media Storage is Sold to an End User.

Royalty reduction (50% discount): If the First Sale is in a country/territory in Region 2 (an emerging market), except for certain products Sold at or below $80, where different reduced rates apply.

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(1) and for using the VVC Advance Trademark Logo.

Standard Rates (i.e., non-discounted rates) apply if the Licensee or its Affiliates are not In-Compliance.

All profiles in Versions 1-3 + Optional Features are included in a single per-device royalty.

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

Annual In-Compliance Royalty Caps

Multiple Cap Product Categories:  Separate caps apply to Mobile Devices, Connected Home and Other Devices (excluding certain VVC Software), 4K UHD+ Television/Displays, and VVC Content on Digital Media Storage.

Single Enterprise Cap:  An additional cap applies to aggregate royalties due for all product categories (excluding certain VVC Software).

Affiliates:  All Affiliates included under a Licensee’s PPL receive the benefit of the caps.

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

Annual Reset:  All caps reset annually on January 1 of each year.

Standard Rates:  If royalties are payable at Standard Rates, the caps do not apply.

Annual Enterprise Credit

An Annual Royalty 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.


(1) In-Compliance means compliance with all the provisions and obligations imposed on Licensee and its Affiliates under the agreements.