ObjectVideo $18 Million Patent Licensing Revenue, Avigilon Reveals

By: John Honovich, Published on Mar 03, 2015

ObjectVideo is making millions on patents.

And Avigilon will now look to build on that momentum.

New financial disclosures as part of Avigilon's OV patent deal shows this. In this note, we break down the financials and examine what this means for manufacturers and the industry at large.

*********** ** ****** ******** on *******.

*** ******** **** *** look ** ***** ** that ********.

*** ********* *********** ** part ** ********'* ** patent **** ***** ****. In **** ****, ** break **** *** ********** and ******* **** **** means *** ************* *** the ******** ** *****.

[***************]

Business *********** ******

******:********'* ******** *********** ********* *** ** ****** deal.

Key ********* *******

** *** **** *.** years (**** - ** 2014), ****** ***** ****** licensing ******** ********* ~$** million ***** ******* ****:

  • $*.* ******* **** *******
  • $*.* ******* **** *******
  • $*.* ******* **-** **** revenue

** **********, ******** *** profit/loss ****:

  • ****: $*.* ******* ******** and $*.* ******* ****
  • ****: $*.* ******* ******** and $*.* ******* ****
  • ****: $*.* ******* ******** and $*.* ******* ******

****, **** *** *** initial **** ** ********, reflecting *** ******** ********.

** ******* *** ************ majority ** *** ******** herein *** *** ********** / ***** ********.

Few ************* - **% ** *******

**** * *** *************, likely *, ******* *** ~**% of *** ******* ********* so ***.

  • ** ****, *** ************ paid ** ~$*.* ******* USD, ************ **% ** the ****'* *******.
  • ** ****, *** ************ paid ** ~$***,*** ***, representing **% ** *** year's *******.
  • ** **** (**-**), *** manufacturers ******** **** ** $6.2 ******* ***, ************ 84% ** *** ****'* revenue.

** / ******** ******** cites ** ********, *** a ******** ** ***** represent ****** *** ** the *******. *** *** top ****** ************* *** is *** *********.

**** *** ******, ** believe ***** *** *** lump-sum ********, ****** ********* 10+ ***** ** ****** coverage ****** ******** *******, meaning **** **** *** unlikely ** **** ** pay ***** ** *** future.

Impact *** ********

***** ******* ** ********* by * *** ********, it ** **** ** project **** **** ***** for ********'* ****** ******* stream. *** *******, ** 2015, **** **** *** one '*****' ******* ** 5 ** *? *********** this ** *** ******* who *** ************* *** already **** *** (*.*., if **** *** ***** it ***** ** **** to ******** **** ***** manufacturers ** ************* **** might ***).

*******, ***** *** **** of *************, *** ** Avigilon *** ****** ~$* million **** **** ** them, ** **** *** take **** **** ** pay **** *** $** million *********** ****.

***********, ***** *** ****** of *** ********, ** might ** ********** *** a ****** ************ ** spend *** ***** ** try ** ********** *** Avigilon ******** ******* *****-*********** *******.

Comments (2)

Who the top paying manufacturers are is not disclosed.

Though one of the lower paying ones appears to be Avigilon themselves:

To eliminate intercompany royalty revenue and costs between the IP division and the Company of $41 for the nine months ended September 30, 2014 and $nil for the year ended December 31, 2013 for licensing agreements that existed before the close of the Transaction.

Paying only a modest $41,000 (CAD), while others paid millions (USD).

Nonetheless, given the amount of the payments, it might be worthwhile for a larger manufacturer to spend the money to try to invalidate key Avigilon payments through the re-examination process.

Could be a tough battle, the patents successfully emerged from re-examination last summer.

Good find on the Avigilon amount. Presumably, they were paying licenses on a per camera basis, rather than a lump sum.

However, the acquired VideoIQ business was doing ~$20 million revenue the previous year, so the licensing amount would not be very significant compared to the revenue.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports on Acquisition

90+ Companies Profile Directory on Nov 05, 2019
While IPVM covers the largest companies in the industry regularly (like Axis, Dahua, Hikvision, etc.), IPVM strives to do a profile post on each...
Alarm.com Acquires OpenEye on Oct 21, 2019
Alarm.com is targeting commercial expansion and now they have a commercial cloud VMS with the acquisition of OpenEye. In this note, based on...
Dahua, Hikvision, Huawei US Ban Rules Released on Aug 08, 2019
The US government has released rules on how the 2018 NDAA ban of Dahua, Hikvision, and Huawei will be implemented when it takes effect in 5...
Motorola Acquires Watchguard, Adds to Vigilant And Avigilon on Jul 15, 2019
2 years ago, Motorola had no position nor relevancy to video surveillance. Now, they own major video surveillance, LPR and body camera providers...
ADT Eliminating Acquired Brands, Unifying Under 'Commercial' Brand on Jun 14, 2019
ADT is eliminating the brands of the many integrators it has acquired over the past few years, including Red Hawk, Aronson Security Group (ASG),...
OpenALPR Doubles Prices on Jun 06, 2019
There is no 'race to the bottom' in cloud / AI video surveillance. In May, Verkada increased their prices. Now, OpenALPR is doing the same with a...
"New" Arecont Fixes Failures "Without A Fight" on Jun 05, 2019
The "old" Arecont was infamous not only for its camera failures but for making their "partners" fight to get them fixed. IPVM drew the ire of...
Panasonic Sells Off / Spins Out Security Business on Jun 02, 2019
Panasonic has sold off its security systems business to a private equity firm, after suffering years of challenges. The new company, which will...
Pelco Sold Off, Now Independent on May 28, 2019
Pelco has been sold off by Schneider Electric, completing Schneider's terrible tenure, but giving Pelco a chance at life. IPVM spoke with...
San Francisco Face Recognition Ban And Surveillance Regulation Details Examined on May 14, 2019
San Francisco passed the legislation 8-1 today. While the face recognition 'ban' has already received significant attention over the past few...

Most Recent Industry Reports

Hidden Camera Detectors Tested on Nov 18, 2019
Hidden cameras are a growing problem as cameras become smaller, cheaper and easier to access. However, some companies claim to be able to detect...
Wyze Fires Back at JCI - Your Patents Are Invalid, Pay All Of Our Costs on Nov 18, 2019
Goliath JCI targeted startup Wyze this summer alleging the fast-growing consumer startup was violating a slew of JCI's patents. Now, Wyze has...
ADT Stock Surges - "Leading The Commercial Space" on Nov 15, 2019
Don't call it comeback... but maybe call it a commercial provider. ADT, whose stock dropped by as much as 2/3rds since IPOing in 2018, has now...
Gatekeeper Security Company Profile - Detecting Faces Inside Vehicles on Nov 14, 2019
Border security is a common discussion in mainstream US news and politics, as is the use of banned Chinese equipment by US Government agencies....
Hikvision CEO And Vice-Chair Under PRC Government Investigation on Nov 14, 2019
In a surprising and globally covered move, Hikvision CEO Hu Yangzhong and Vice-Chairman Gong Hongjia are being investigated by China's securities...
Camera Field of View (FoV) Guide on Nov 13, 2019
Field of View (FoV) and Angle of View (AoV), are deceptively complex. At their most basic, they simply describe what the camera can "see" and seem...
UK Big Brother Watch: Hikvision Is 'Morally Bankrupt' on Nov 13, 2019
UK civil liberties advocate Big Brother Watch has condemned Hikvision as being 'morally bankrupt' following IPVM exposing Hikvision marketing...
Color Low Light Mega Camera Shootout - Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision, Panasonic, Speco, Sony, Vivotek on Nov 12, 2019
This is the biggest color low light shootout ever, testing 20+ super low light models from 10 manufacturers: Increasingly, each manufacturer...
Wireless / WiFi Access Lock Guide on Nov 12, 2019
For some access openings, running wires can add thousands in cost, and wireless alternatives that avoid it becomes appealing. But using wireless...