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H.265 Patent Fees
release time:2015-09-14 17:44:54 browse:

H.264 is one of the most popular video encoding formats at present. It is the advanced technology with very low royalties and enterprises only need to pay $ 6.5 million a year, while individual users are free.  Today, H.265 / HEVC is spreading, but the royalties is terrible high.


In the March 2015, Dolby, Philips, Mitsubishi, General Electric, Technicolor and other companies formed an alliance HEVC Advance last month, intended to build the new H.265 patent pool and charge externally.


In fact, MPEG LA, who owned the licensed H.264 format, has already opened the licensing of H.265.It is very obvious that such group of companies want to reinvent the wheel to get big money.


HEVC Advance claims to have more than 500 patents of H.265. The content manufacturer need to pay 0.5 percent of their gross income as royalties if they want to use them no matter where the contents are used.


The proportion does not seem high, but for Apple, Amazon, Facebook, Netflix etc., it is actually quite huge because each company has to pay more than 100 million USD every year.


It is even worse that all the H.265 content produced previously from the first selling day will re-counted and all the royalties should be charged.


Even equipment manufacturers have to pay such royalties. The royalties for each TV is $ 1.50, $ 0.80 for a phone, and for streaming media players, set-top boxes, game consoles, Blu-ray players,  DV recorders,  projectors, digital media storage device, GPS navigation, and digital photo frames, the charge is $ 1.10 for each.



In contrast, MPEG LA Company is much kind. Manufacturers are not charged for the first 100,000 sets of equipment per year, afterwards each is priced at just $ 0.20,  and is capped $ 25 million per year,  while the content creators are not charge any fees.













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