H.265 Licensing Fees Examined / CEO Interview

By: Brian Karas, Published on Jul 14, 2016

Axis has repeatedly warned about H.265 licensing, most recently:

[The H.265 license model] includes a royalty on revenues generated on the content developed by any HEVC-enabled device. This royalty on content has prompted strong backlash

Is this true?

We spoke with the CEO of HEVC Advance, Peter Moller, the licensing company representing H.265 patent holders, to better understand H.265 licensing for security devices.

In this report, we examine why Axis is wrong, and break down the details of how H.265 licensing will apply to the video surveillance industry.

**** *** ********** ****** about *.*** *********, ************:

[*** *.*** ******* *****] includes * ******* ** revenues ********* ** *** content ********* ** *** HEVC-enabled ******. **** ******* on ******* *** ******** strong ********

** **** ****?

** ***** **** *** CEO ****** *******,***** ******, *** ********* ******* representing *.*** ****** *******, to ****** ********** *.*** licensing *** ******** *******.

** **** ******, ** examine *** **** ** wrong, *** ***** **** the ******* ** *** H.265 ********* **** ***** to *** ***** ************ industry.

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

0.5% ******* *** **********

*** **** ***************** *** *.*% ******* royalty******** ** ******** ****, after ************** ******** ** **** model. ** ******* *** forming ** *********** *** **** *****, ***** *** *** to ****** * **** alternative ** *.*** ********** this ********.

**** *.*% *** *** originally ******** ** ** payable ** ********* **** Netflix. ** *** ********* unclear ***, ** **, this *** ***** ***** to ***** *********, ***** did *** **** * per-stream ******, *** *** have ***-****** ******* *************.

*********** ** **** *** should ***** ** ********* and *********** ***** ***** companies ********* **** *** streaming ******** *****.

**** ****** *** **** Commercial *******, *** ********** To ********

***** **** ******** ******* is *** ********** ** any ******* ************, **** though **** ***** *****, confirmed *** ***.** ************ ***** ***** VSaaS-style ********* *** ***** security-related ************, *** **** informed **** ***** ******* of ******** ****** ***** were ********** "***-********** *****" and *** ********** ** any ********* **** ****** the ******-**** ******* *** the ******* ******* (********* below).

Licensing *** ******** *** ********

*** **** ******* ******** per-unit **** *** ******** devices, ** ******** *************, that ********* ** *.*** encoder ***/** ******* ********. These **** **** **** is ******* ** *** "Connected **** *** ***** Devices" ********. ** ** a ***-**** ***, *** is ***** ** *** country *** ******* ***** to, ********** ** ***** it ** ************.

******** ******* **** ****** 1 *********, ***** *** shown ** *** ***** below, *** * *** $0.80 ***. ****** * countries, ***** *** *** not ****** ** ****** 1, **** * *** $0.40/device ***.

***** ****** * ****** the ******** ** *** market *** ********, ********** Region * ********* ******* China, ******, *****, ****** and ***** ******. *******, products **** ** ***** and **** **** **, e.g., *** ** ** EU ***** ***** *** higher ****** * ****.

*** ********* **** *** Other ******* ******** *** a ******* ****** ******* cap ** ***$**,***,***.

******** ****** ********* *******

******* *** * ****** license ***, ********** ** type.** ************ ***** ***** multi-sensor ******** ******* *** were ******** ***** **** incur * ****** ***, even ** **** ******* multiple *******, ******** *******, tiled *******, ** *** other *******.

******** ******** ********* *******

********* ** *** ***, VMS ********* ***** *** a ******* *** *** hardware ******, ********** ** number ** ********* *******, or ********* *******.

*** ******* ***** **** an *.*** ******* ******** in ***** ********, ***** require * ******** ******* for **** ****** ************. When ** *** ******* out **** *** ****** software ** ********* *******-**** from *** ************, *** installations *** *** ****** tracked, *** *** ********* there *** ** *********** options *** ****** "** *** *****, ** would **** ** **** faith ** **** * reasonable *** ******** ********."

First **,*** ******* ******** *** ****

********* ****** *** **** licensing ********** ** * statement "******** ***** ********* of **** **** $**,*** annually ** *** **** to ******* * ******* Agreement, ******* ** ******* exceptions". ****, ** *******, means **** *** ****** manufactures (***** ********* **** than ~**,*** ******* ********) would *** *** *** H.265 ********* **** *** hardware *******.

Caveats ** *** *******

**** ********* ** **** report ********* ******-**** *******, as ***** *** **** HEVC ******* ********* ** "In **********" ***** *** companies ************ *.*** ****/****** profiles, *** ********** *** HEVC ******* **** ** product *********. ****** **** may ***** *** ********* that ********* ********** ******** in ********, ** *** considered ***-********* *** ***** reasons.

******* ******* ****** *** Be ******** *.*** ********

***** **** *************, **** as *********, ************* ************** *** ******* **** (and ******* ****) ** H.265 ******** ** *.***, there ****** ** ** concerns ***** *** ** when ***** **** *** applicable, ** **** *** final ***** **** **. Additionally, ******** *********, ******* using *****-****** ** **-**** installed *************, ****** *** fear ************* ** ********* licensing **** *** ************ H.265 ******** ** ******** functionality ** ***** ********, as *** **** ******* has **** ** ***** there *** ** ******* fees *** ********* ******** camera *****.

** ***** ********* ************* who *** ******* ** H.265 ********* ************ *** their ******** ** ******* HEVC ******* ** **** questions ** *** ******** and ** *** ****.

*** ** **** *****, other ****** *** *.*** adoption ******, *.*., ******* (though **** ** ** increasing *** *******) *** H.264 ***** ****** ***** a ****** ****** ********** without **** ** ******* / *** *.***.

Comments (6)

Not surprising that HEVC Advance didn't mention their competitor the MPEG LA.

But the MPEG LA is the company that handles h.264 royalties today and is also the company who had the first patent portfolio for h.265. HEVC Advance was actually born of the discontent of some of the MPEG LA manufacturers.

In any event, the quandary is that buying a license from one does not mean one does not need one from another.

We appreciate Brian reaching out to HEVC Advance and taking the time to get the facts for IPVM Members. The issue of MPEG LA wasn't raised during the conversation. Please note that we don’t view MPEG LA as a competitor but rather as a complementary patent pool administrator. Our programs are quite distinct and while I hope patent owners join our program to the extent that such patent owners believe the MPEG LA program better meets their needs I hope they join MPEG LA. HEVC Advance was, in fact, born because many key patent owners did not believe that MPEG LA provided a ‘product’ that meet the needs of both patent owners and patent users and thus would not provide a long term solution to the market place. We believe that HEVC Advance does provide that balance. And while having two patents pools might not be as efficient as having one patent pool, it is almost certainly far more efficient than having to execute multiple bilateral license deals.
Pete Moller
CEO
HEVC Advance

Thanks Peter.

Does joining one patent pool excuse one from joining the other? Will some/most need to join both?

What are, in your opinion, the ramifications of Technicolor exiting both pools? Does this create a third entity to pay?

Each patent pool generally offers a license to a different set of essential patents. So to the extent a company determines it needs a license to both of those separate sets of patents then yes, they would need to join both patent pools. I would note that HEVC Advance has offered the opportunity for all of the MPEG LA licensors to join the HEVC Advance patent pool with no change in our royalty rate structure. If that was to happen then companies would only need to join the HEVC Advance patent pool to obtain a license to both sets of patents.

Concerning Technicolor, please note that Technicolor did not exit both pools, rather Technicolor did not join either pool. That is, they were never a licensor in either pool. I believe the ramifications of Technicolor not being a licensor in either pool is negligible. It is my understanding that Technicolor has a relatively modest portfolio of essential patents, so IF they sought licenses from companies in this market category and IF companies determined they needed a license to those patents, then I would expect the royalty rate would also be modest. In any event, the licensing group at Technicolor is a professional organization and I have no doubt that they will act responsibly and not hinder adoption of HEVC technology. And who knows, maybe they will reconsider and decide to join either HEVC Advance or MPEG LA in the future.

Concerning Technicolor, please note that Technicolor did not exit both pools, rather Technicolor did not join either pool. That is, they were never a licensor in either pool. I believe the ramifications of Technicolor not being a licensor in either pool is negligible.

Thanks Peter.

I was asking because of their own press release, which contains a fair amount of puffing:

TECHNICOLOR WITHDRAWS FROM THE HEVC ADVANCE POOL TO ENABLE DIRECT LICENSING OF ITS HEVC IP PORTFOLIO

Very Informative article.

Much thanks for this update.

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

Repositionable Multi-Imager Camera Shootout - Avigilon, Axis, Dahua, Hanwha, Hikvision, Panasonic, Vivotek on Jun 19, 2019
Repositionable multi-imager cameras are one of the fastest growing segments in video surveillance, with a slew of new offerings being recently...
Startup Vaion Launching End-to-End AI Solution Backed with $20 Million Funding on Jun 17, 2019
An EU / USA video surveillance startup, Vaion, founded by ex-Cisco Senior Directors is launching an end-to-end VSaaS platform with $20 million in...
Sighthound Transforms Into Enterprise AI Provider Profile on Jun 14, 2019
Sighthound is now rapidly expanding its R&D team, building an enterprise AI service. This may come as a surprise given their origins 6 years...
Embattled $400 Million China Funded Philippines Surveillance System Proceeds on Jun 13, 2019
An embattled 12,000 camera surveillance system project that will cost ~$400 million will proceed.  The project contract was awarded, had its...
Carnegie Mellon AI Startup Zensors Profile on Jun 11, 2019
Zensors is a startup formed by Carnegie Mellon graduates from a Carnegie Mellon research project, offering customized models per camera that they...
Avigilon 32MP and 12MP H4 Multisensor Cameras Tested on Jun 11, 2019
Avigilon has released their H4 Multi-Sensor line of cameras claiming "broad scene coverage and high image detail" We bought and tested the...
Directory of 30+ VSaaS / Cloud Video Surveillance Providers on Jun 07, 2019
This directory provides a list of VSaaS / cloud video surveillance providers to help you see and research what options are available. 2019 State...
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...
Startup Rhombus Systems Says Twice the Features, Half the Price of Verkada on Jun 04, 2019
Closed cloud systems may be the fastest growing segment of video surveillance with Meraki and Verkada. Now another California company is joining...

Most Recent Industry Reports

Repositionable Multi-Imager Camera Shootout - Avigilon, Axis, Dahua, Hanwha, Hikvision, Panasonic, Vivotek on Jun 19, 2019
Repositionable multi-imager cameras are one of the fastest growing segments in video surveillance, with a slew of new offerings being recently...
Genetec Synergis Cloud Link - Complex, Costly and Confusing on Jun 18, 2019
Genetec's Synergis Cloud Link is complex, costly and confusing compared to competitor access control architectures. Inside this note, we examine...
Startup Vaion Launching End-to-End AI Solution Backed with $20 Million Funding on Jun 17, 2019
An EU / USA video surveillance startup, Vaion, founded by ex-Cisco Senior Directors is launching an end-to-end VSaaS platform with $20 million in...
Biometrics Usage Statistics 2019 on Jun 17, 2019
While face and fingerprint recognition are used regularly for smartphones, it is not as common in physical security. In this note, we examine...
The Scheme Hikvision and China Importers Use To Avoid Tariffs on Jun 17, 2019
Hikvision and numerous China importers are avoiding 25% tariffs by including an SD card slot in their IP cameras to claim they are 'digital still...
Sighthound Transforms Into Enterprise AI Provider Profile on Jun 14, 2019
Sighthound is now rapidly expanding its R&D team, building an enterprise AI service. This may come as a surprise given their origins 6 years...
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),...
NSA Director Keynoting Dahua and Hikvision Sponsored Cybersecurity Conference [Canceled] on Jun 13, 2019
The technical director for the NSA’s Cybersecurity Threat Operations Center will be keynoting a physical security cybersecurity conference that is...
Farpointe Data Conekt Mobile Access Reader Tested on Jun 13, 2019
California based Farpointe Data has been a significant OEM supplier of conventional access readers for years to companies including DMP, RS2, DSX,...
Embattled $400 Million China Funded Philippines Surveillance System Proceeds on Jun 13, 2019
An embattled 12,000 camera surveillance system project that will cost ~$400 million will proceed.  The project contract was awarded, had its...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact