VVC Product (VVC codec in hardware or paid software)
Includes a VVC Codec in software and/or hardware Sold for compensation or other consideration to an End User. Compensation or other consideration may include subscription fees, pay per view fees, service fees, and/or the addition (whether or not for compensation or other consideration) of a first VVC Product to a product for which there has been compensation or other consideration.
| Volume (per unit / annual reset) | Per Unit Fee | Maximum annual royalty payable by an Enterprise** |
| For the first 1 to 100,000 units | No Royalty* | |
| For units 100,001 and more | $ 0.20 | $30,000,000 |
| * Available to one Legal Entity in an affiliated group | ||
VVC Free Software (VVC codec in free software)
Includes a VVC Codec consisting solely of software Sold for no compensation or other consideration to an End User. Where there are no fees to download, install and use a software app to create, edit or view VVC Content, compensation or other consideration does not include compensation received by the Licensee that (a) is indirectly or not directly paid by the End User, (b) is voluntary or (c) represents payments for the purchase of products or services advertised by the content provider through the software app even if the Licensee eventually receives a portion of such compensation.
| Volume (per unit / annual reset) | Per Unit Fee | Maximum annual royalty payable by an Enterprise** |
| For the first 1 to 1,000,000 units | No Royalty* | |
| For units 1,000,001 and more | $ 0.05 | $8,000,000 |
| * Available to one Legal Entity in an affiliated group | ||
** Maximum annual royalty (cap) for both VVC Products and VVC Free Software is limited to $30M. Caps do not apply to Back Royalties unless License is signed within the later of six (6) months from the date the License is first offered to the market (January 27, 2022) or within six (6) months of the date the Licensee first offers the product for Sale.
The actual License agreement provides the only definitive and reliable statement of license terms.
Royalty Waiver and Discount
- A waiver of royalties for standalone (not in or with hardware) VVC software products Sold (with or without compensation or consideration) to an End User is available to any VVC Licensee that commits to becoming a Licensor to MPEG LA’s VVC License if they or their Affiliates presently or in the future have the right to license or sublicense VVC Essential Patents
- A VVC royalty discount is available to any VVC Licensee who enters into and is compliant with MPEG LA’s AVC, HEVC and VVC Patent Portfolio Licenses
Effective date: first date of usage of the VVC standard in the market by the licensee.
Back Royalty date from January 1, 2022.