The Avigilon Patent License Program

The Avigilon Patent License Program

"The Early Adopter Plan further enhances the value of joining the License Program," said Chris Capuano, Avigilon's Vice President of Licensing. "The License Program makes fundamental patents available to industry participants, providing them with greater freedom to operate. We encourage all interested companies to join the License Program by taking advantage of the Early Adopter Plan.

Shades of Object Video's Amnesty Program intended to give qualified video analytic providers a 60-day window to enter into a global, portfolio-wide patent licensing agreement with OV.

It was reasonable to expect that they would start with something like this program. And their offer is backed by the list of Current Licensees.

And their offer is backed by the list of Current Licensees.

And their offer is backed by the list of Former Litigants. ;)

Huh, it would be even more efficient to name them so.

Alex from the 2016 Q2 investors call:

Thanks for the questions. So I'll start by the market today $20 million, growing to over $25 billion in a relative short timeframe. We believe that in the coming quarters and in the next few years that a majority of –if not all industry participants we'll have some form of analytics.

We target between 2.5% to 5% now, so you can basically work backwards from the market numbers and of course discount because you know, some industry participants are in maybe obscure jurisdictions or have very small market share where it doesn't really make sense to engage with them or they simply go into the radar.

So you know, we wouldn’t – I don't think it would be a realistic assumption to say that every single industry participants will become a target licensee. But we certainly plan to engage with the majority of them. And so I'll leave it up to you to make an assumption on what you think the percentage of the total market that we may be able to affect. But you know the royalty rates.

And then the other thing to factor into your assumption or that we factor internally with our pipeline, as you put it is there is a certain rate at which we can sign up licensees. And so we - it’s simply just not practical to go after 300 targets, let's say all at once.

And so we break them down into smaller bite-size chunks. And so we work on these. So as an example, as a frame of reference in the last quarter signed up seven new licensees and so over time these things will accumulate, these licensees and the royalties and then keeping in mind that we have catch up payments that are required.

And so as time marches on the catch up payments they stack and they get bigger. And so there is a - that create essentially a kind of a logarithmic increase as opposed to a linear increase in royalty revenues. And so I guess, just putting sort of bookends on that, we really launched our licensing program, really earlier this year, just a few months ago.

And so again, very, very early days. I stated on other calls, we really don't expect - you know, we're getting meaningful revenues in the millions. But we really expect the licensing program to start having – to moving the needle if you like more in 2017, and onwards.

So we see it as a 2 to 3 to 4 years to really gain the momentum and in 4, and 5 I think it will be in full stride and again so this is a longer term initiatives, but highly profitable.