Manufacturers Sound Off on Avigilon / OV Deal

JH
John Honovich
•Published Dec 22, 2014 05:00 AM

$80 million cash for no products, just patents - one of the most unusual deals in the history of the video surveillance industry.

IPVM did a survey of more than 50 manufacturers - Avigilon's competitors - to see what their outlook on the deal was.

The two open ended questions were:

  • "What impact, if any, do you believe Avigilon's acquiring OV patents will have on your company?"
  • "What impact, if any, do you believe Avigilon's acquiring OV patents will have on the industry overall?"

Short term, manufacturers generally had little concerns but long term the fears were huge.

Inside this note, we break down the commentary and share the full results.

Most - ** ****** ** ********* ******

**** **% ** *********** **** **** the **** ***** **** ** ****** or ********* ****** ** ****, ********* because **** ** *** **** ** offer ***** *********. **** ******** *** ************ weak ***** ** ***** ********* ** surveillance.

************** ********* ********:

  • "* ***'* *** *** ********* ****** on *** *******, ** ***'* **** any ***** ********* (***** **** ****** detection) ** *** *** ** *******."
  • "** ***'* *********** *** ********* ** I ***'* *** ** ****** ** us."
  • "****, ** ** *** **** *** internally ********* ********. ** ******* **** analytic ********* ** ***** ***** **** of *********."
  • "* ***** ****** ****** ****** ** our *******. ********* ** * **** small **** ** *** ********."

Some ***** **** ********

* ******** ********* *********** ****** ******** either ******* ** ******** ** * general ********** ** ******* ** ***** impact ** *********:

  • "******* ******** **** ****** ** ******* for *** *********** ** ***** ************ for **** ***** *** *********** ********* video ******** ******** **** ******* **** diligence ** ****** ********** ******* **** all *** ******** ********** ** ******* understood ** ** *** ******* ******* our *********."
  • "******** ** * *** ***** ** our ***** ** **** ********. ******** strengthening ***** ********* ********* **** **** things * ****** *** **** *********** from *** ** *** ******* ********."
  • "**** ****** ******* *** ********** ******** generation ****, *** **** ******* *** not **** ** **** *** ***** this **** ** **** ** ***** cameras ******* ** **'* *******. *** only ****, **** ******** **** *** consider **** **** ** ******** ** important *** *** *** ** **** money ***** ***** *********."
  • "******** ******** *** ****, ** ***, to ********* **** **** ** ***** Analytics ** *** ***** ** ****** timeframe."

Shut **** - ******** ********

*** **** ****** ***** **** ************* was **** ******** *** ***** ** use *** ******* *** ** ******** royalties *** ** ***** ***** ****** from ********* ** *** ********* *****:

  • "******** ***** **** **** **** * stranglehold ** *** ********** *** **** it *** **********, ** **** * competitive *********."
  • "****** **** ****** ** ** ****** aggressive ** *** **** *** ****** of ******** **** ********** *** ********* of ***** *********."
  • "** **** ** ***** *** ***** (like **** ************ ***) ** **** stop **** ***** ** ***** ******."
  • "* ***** ****** **** **** *** enormous ****** **** *****, ***** **** be ** ********** *********** ****** ****** in *** **** ******."
  • "* ******* ******* ***** *** ***** overly ********** ** *** ****** ******** will ****** *** **** **** ********* to **** **** ** *********** *** bullying ******."
  • "** *** ***** **** ********* ********* out ** ******** *** ** **** drive **** ******** ** ******** ******* analytics."
  • "* ***'* ***** **** ******** ** interesting ** ******* ********* ********. ** they *** ** **** ****** ***** this ******* **** ** **** ** a ******** *** *** ********."
  • "** *** **** ** ******** ** to "******" *** ***** ********* ******* on ***** ********, ** **** ****** in *** *** *** ****** *********** in **** ****. ** ***** ** a ******** *** *** ****** ********."
  • "** *** * ***** ******** ** entering **** ********* *********, ***** ********'* interests *** **** ******* ******* *** competition (** ** *****)"
  • "** *** **** ***, **** **** use ***** ********** ** ***** ******* to ***** ***** *********."
  • "* ***** ** **** **** ** adverse ****** ** *** ******** ******* we **** ******* **** *** **** that ******** ** ********* *** *** they **** **** **** ***** ** abuse ** ******* ***** *******."
  • "* ******* **** ******** **** ****** the **** ********´* ****** *****... **** can **** ** **** **** **** bad *** *** ******"

*** *** ***** ******* ** ****, noted ** * *** ***********, ** that **** ************* ******* **** ********** with **. ** *** ****** ***** agreements *** *** ****** ** ****** around ** ********, ***** ************* ****** be ********** ****, **** ** ******** aims ** ** **********.

Comments (7)
Avatar
Ricardo Souza
•Dec 22, 2014
Motorola Solutions • IPVMU Certified

Avigilon = Google of CCTV soon?

(1)
(2)
JH
John Honovich
•Dec 23, 2014
IPVM
In reply to Ricardo Souza

Well, no :)

Google has 60 - 70% share in their core market, Avigilon has ~2%

Now, in analytics, it depends how they use the patents, but clearly this sets them up to be the market leader (though who knows if they can get a majority of all analytic sales, hard given the fragmentation of thsi industry).

U
Undisclosed #1
•Dec 24, 2014
IPVMU Certified

Maybe Avigilon's competition should consider doing what Avigilon did when faced with the prospect of IP litigation from a rabid troll...

UD
Undisclosed Distributor #2
•Dec 26, 2014

It would be interesting to know how OV's existing licencing agreement address transfer of company ownership. Is there guaranteed continuity?

JH
John Honovich
•Dec 26, 2014
IPVM
In reply to Undisclosed Distributor #2

A few manufacturers commented on this in the survey. It was their belief that the licensing agreement simply transferred and that they were covered, as before.

Avatar
Robert Baxter
•Jan 06, 2015

"vendors are developing metadata generation code"

John, can you explain what this means in contrast to Avigilon analytics?

JH
John Honovich
•Jan 06, 2015
IPVM
In reply to Robert Baxter

That's a comment from a manufacturer so I can comment but I am not speaking for him.

In general, OV has claimed they have a patent on metadata for video analytics (they said as much to me directly a few years ago).

For example, if one uses video analytics to determine that a person is located in a video clip at 12:22 pm 1/5/2015 and you save / send that data, it would be considered metadata (i.e., data describing data) and would theoretically violate the claimed OV / now Avigilon analytics.

As the manufacturer commenting stated, it all depends how Avigilon decides to interpret / enforce this.