MPEG-2 / MPEG-4 Video

2 AVR32722
32097A-AVR32-01/08

4 MPEG-2 / MPEG-4 Video
Patents covering MPEG-4/MPEG-2 video are claimed by many companies. The MPEG Licensing Authority (http://www.mpegla.com) licenses patents required for MPEG-4 Part 2 Visual and MPEG-2 from a wide range of companies. New licenses for MPEG-4 System patents are under development and no new licenses are being offered while holders of its old MPEG-4 Systems license are still covered under the terms of that license for the patents listed.
The MPEG Licensing Authority has two licensing models for MPEG-2/MPEG-4, a “system” license and “codec” license. The system license applies for devices which handle MPEG-2/MPEG-4 but do not have a licensed video encoder/decoder. This is the case when the device only handles MPEG data streams.
For MPEG-2/MPEG-4 video decoding another license is needed.

4.1 MPEG-2 (2008년 기준)
The fee for a MPEG-2 System license is US$ 0.50 for each product.
Following royalty categories are available for a MPEG-2 “codec” license:
• Decoders: $2.50 per unit
• Encoders: $2.50 per unit
• Distribution Encoders: $2.50 x L per unit, where L is the number of programs encoded in parallel

Consumer Products (Encode & Decode): $2.50 per unit
• Intermediate Products: License to make and sell (no royalty), end user product bears royalty

4.2 MPEG-4 Visual (2008년 기준)
Currently no information about a MPEG-4 system license is available. For further details please contact the MPEG Licensing Authority.
Following royalty categories are available for a MPEG-4 “codec” license:
• Decoders sold to end users and/or as fully functioning for PCs
o 0 - 50,000 decoders/year = no royalty (available to one legal entity in an affiliated group)
o US $0.25* per decoder after first 50,000 decoders/year
o Annual cap per Legal Entity: $1,000,000
• Encoders sold to end users and/or as fully functioning for PCs
o 0 - 50,000 encoders/year = no royalty (available to one legal entity in an affiliated group)
o US $0.25* per encoder after first 50,000 encoders/year
o Annual cap per Legal Entity: $1,000,000
• Enterprise cap - $3 million per year

6 References
[1] Information about various video/audio formats: http://www.wikipedia.org
[2] MP3 licensing from Thomson: http://www.mp3licensing.com
[3] Atmel as MP3 licensee: http://www.mp3licensing.com/licensees/index.asp
[4] MPEG-2 MPEG-4 Audio (AAC) licensing: http://www.vialicensing.com
[5] Windows Media licensing:
http://www.microsoft.com/windows/windowsmedia/licensing/default.mspx
[6] Windows Media licensing fees and royalties: http://www.microsoft.com/windows/windowsmedia/licensing/licensing.aspx
[7] Atmel contact email: avr32@atmel.com
[8] Sisvel (Audio MPEG) MP3 licensing: http://www.audiompeg.com

July 06, 2009 12:15 AM Eastern Time

New MPEG LA MPEG-2 License Agreement Offers Extended Coverage at Reduced Royalty Rates

DENVER--(BUSINESS WIRE)--MPEG LA, LLC, world leader in alternative one-stop patent licenses, today announced the offering of a new MPEG-2 Patent Portfolio License that will provide uninterrupted coverage for the life of the MPEG-2 essential patents at reduced royalty rates beginning January 1, 2010.

“MPEG LA and the MPEG-2 Licensors are committed to assuring that our MPEG-2 License continues to be responsive to the needs of our customers and the marketplace, and the new MPEG-2 License provides further affirmation of that objective”

“MPEG LA and the MPEG-2 Licensors are committed to assuring that our MPEG-2 License continues to be responsive to the needs of our customers and the marketplace, and the new MPEG-2 License provides further affirmation of that objective,” said Larry Horn, MPEG LA President and CEO.

From the later of January 1, 2010 or the execution date of the new License, the royalty rate for each MPEG-2 Decoding, Encoding and Consumer Product (as defined in the new License) will be US $2.00, down from the current $2.50, and royalties for MPEG-2 Packaged Medium (e.g., DVD Video Discs) will be reduced to US$0.0176 during 2010, and US$0.016 after 2010.

For more information about the new MPEG-2 Patent Portfolio License or to request a copy of the License, please visit http://www.mpegla.com/m2/ or email Licensing@mpegla.com.

MPEG LA, LLC

MPEG LA is the world leader in alternative technology licenses, enabling users to acquire worldwide patent rights necessary for a technology standard or platform from multiple patent holders in a single transaction as an alternative to negotiating separate licenses. Wherever an independently administered one-stop patent license would provide a convenient marketplace alternative to assist users with implementation of their technology choices, the licensing model pioneered and employed by MPEG LA may provide a solution. Among MPEG LA’s licenses is a patent pool for MPEG-2 digital video compression that has helped produce the most widely employed standard in consumer electronics history. The MPEG-2 Patent Portfolio License, which includes more than 870 MPEG-2 essential patents in 57 countries, has more than 1,600 licensees accounting for most MPEG-2 products including set-top boxes, DVD players, digital television sets, personal computers and DVD Video Discs in the current world market. MPEG LA is an independent licensing administrator; it is not related to any standards agency and is not an affiliate of any patent holder. For more information, please refer to http://www.mpegla.com.

Contacts

MPEG LA, LLC
Tom O’Reilly, 860-620-0642
Fax: 301-986-8575
toreilly@mpegla.com

Permalink: http://www.businesswire.com/news/home/20090705005026/en/MPEG-LA-MPEG-2-License-Agreement-Offers-Extended

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August 26, 2010 01:00 AM Eastern Time

MPEG LA’s AVC License Will Not Charge Royalties for Internet Video That Is Free to End Users Through Life of License

DENVER--(BUSINESS WIRE)--MPEG LA announced today that its AVC Patent Portfolio License will continue not to charge royalties for Internet Video that is free to end users (known as “Internet Broadcast AVC Video”) during the entire life of this License. MPEG LA previously announced it would not charge royalties for such video through December 31, 2015 (see http://www.mpegla.com/Lists/MPEG%20LA%20News%20List/Attachments/226/n-10-02-02.pdf), and today’s announcement makes clear that royalties will continue not to be charged for such video beyond that time. Products and services other than Internet Broadcast AVC Video continue to be royalty-bearing.

MPEG LA's AVC Patent Portfolio License provides access to essential patent rights for the AVC/H.264 (MPEG-4 Part 10) digital video coding standard. In addition to Internet Broadcast AVC Video, MPEG LA’s AVC Patent Portfolio License provides coverage for devices that decode and encode AVC video, AVC video sold to end users for a fee on a title or subscription basis and free television video services. AVC video is used in set-top boxes, media player and other personal computer software, mobile devices including telephones and mobile television receivers, Blu-ray Disc™ players and recorders, Blu-ray video optical discs, game machines, personal media player devices and still and video cameras.

For more information about MPEG LA’s AVC License or to request a copy of the License, please visit http://www.mpegla.com/main/programs/AVC/Pages/Intro.aspx.

MPEG LA, LLC

MPEG LA is the world leader in alternative technology licenses, enabling users to acquire worldwide patent rights necessary for a technology standard or platform from multiple patent owners in a single transaction as an alternative to negotiating individual licenses. Wherever an independently administered one-stop patent license would provide a convenient marketplace alternative to assist users with implementation of their technology choices, the licensing model pioneered and employed by MPEG LA may provide a solution. By balancing patent users’ interest in reasonable access with patent owners’ interest in reasonable return, MPEG LA creates the opportunity for adoption of new technologies and fuels innovation. MPEG LA’s initial licensing program for MPEG-2 digital video compression helped produce the most widely employed standard in consumer electronics history, and the MPEG LA® Licensing Model has become the template for addressing other technologies. Today MPEG LA manages licensing programs consisting of essential patents in 70 countries. For more information, please refer to http://www.mpegla.com.

Contacts

MPEG LA, LLC
Tom O’Reilly
Tel: 303-200-1710
Fax: 301-986-8575
toreilly@mpegla.com

Permalink: http://www.businesswire.com/news/home/20100825006629/en/MPEG-LA%E2%80%99s-AVC-License-Charge-Royalties-Internet

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