MPEG LA Announces HEVC Licensing; Annual Max Royalty Quadruples to $25M

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Just got the press release; No content royalties (H.264 had them for subscriptions and PPV) and max annual royalty quadrupled (more or less) from $6.5 million to $25 million to start.

Here’s the pasted bit from the press release: full release attached below.

Decoder-Encoder Manufacturer Sublicenses

• HEVC products sold by a legal entity to end users
   o 0 – 100,000 units/year = no royalty (available to one legal entity in an affiliated group)
   o US $0.20 per unit after first 100,000 units each year
  o Maximum annual royalty payable by an enterprise (company and greater than 50% owned subsidiaries): initially starts at $25M (H.264 was $6.5 million)
• Includes right to make, use and sell
• Royalties are payable for HEVC products from May 1, 2013 forward

Other

• No separate royalties for HEVC content
• Vendors of semiconductor chips or other products that contain an HEVC encoder and/or decoder may pay HEVC royalties on behalf of their customer who is a licensee