MPEG-4 Visual

LICENSE FEES

Section 1 – Decoders and Encoders

Decoders sold to end users (including fully functioning components for PCs)

Volume (per decoder / annual reset) Per Decoder Fee
For the first 1 to 50,000 decoders No Royalty*
For decoders 50,001 and more $ 0.25**

 

Annual cap per Legal Entity after December 31, 2010 $1.25M
* Available to one legal entity in an affiliated group.
** A licensee may elect to pay US $0.24 for every product whether or not manufactured or sold in a patent country without reporting country of manufacture and country of sale

Encoders sold to end users (including fully functioning components for PCs)

Volume (per encoder / annual reset) Per Encoder Fee
For the first 1 to 50,000 encoders No Royalty*
For encoders 50,001 and more $ 0.25**

 

Annual cap per Legal Entity after December 31, 2010 $1.25M
* Available to one legal entity in an affiliated group.
** A licensee may elect to pay US $0.24 for every product whether or not manufactured or sold in a patent country without reporting country of manufacture and country of sale

 

Enterprise cap: $3M per year prior to 2009; $3.3M in 2009; $3.6M in 2010; $3.75M after December 31, 2010

Section 2 – Participation Fees

Where End User pays for MPEG-4 Video

Subscription (Not Title-by-Title)

Volume (per subscription) Annual Fee
For the first 1 to 100,000 subscriptions No Royalty
For subscription 100,001 to 250,000 $ 25,000
For subscription 250,001 to 500,000 $ 50,000
For subscription 500,001 to 1,000,000 $ 75,000
For subscription 1,000,001 to 5,000,000 $ 100,000
For subscription 5,000,001 to 25,000,000 $ 200,000
For subscription 25,000,001 and more $ 300,000

 

Title-by-Title

Length (per title) Fee
12 minutes or less No Royalty
Longer than 12 minutes Lower of (a) 2% of remuneration paid in licensee’s first Arm’s-Length Sale or (b) $0.02 per title.

Where remuneration is from other sources

Description Fee
Free Internet Broadcast (not Title-by-Title, not Subscription) No royalty through December 31, 2023
Free Television (not Title-by-Title, Subscription or Free Internet Broadcast) One-time fee of $2,500 per transmission encoder

 

  • Enterprise cap (applies cumulatively across the participation fee categories in this Section 2):
    • $3M per year prior to 2009; $3.3M in 2009; $3.6M in 2010; $3.75M after December 31, 2010

 

Licensee could elect a combined $7.5M cap, which applies to the encoder and decoder cap and the participation fees cap noted above.

The actual License agreement provides the only definitive and reliable statement of license terms.

Effective date: January 1, 2000

Back royalty from January 1, 2004