HEVC Advance Patent Pool Updated Pricing

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HEVC Advance Program Update • Reduced royalties on both content distribution and devices § Limit royalties to places where revenue is generated from an end-user sale § Waive royalties for “Free-to-User” content (ad-supported, no fee to end-user, etc.) for both Broadcast TV and Internet Content § Simplify structure to eliminate “Attributable Revenue” calculations § Royalty phase-in for Content Subscriptions • Royalty caps added § Device and content category caps provide benefits to licensees in a single product category § Aggregate caps for multi-category licensees § Caps apply to an entire enterprise (i.e. royalties owed from a Legal Entity and its affiliates are aggregated and applied against the cap amounts) • Encourage market development § Royalty credit ($25,000 per year) to exempt smaller market participants § Reduced royalty rates (50% discount) in emerging markets (“Region 2”) § 20% limit on any increase to royalty rate and cap amounts during any 5 year renewal term. • Incentive Program for Prompt License Execution § Up to 50% reduction in royalty rates and application of annual caps on prior sales § 10% royalty discount on device royalties for first license term (through December 31, 2020) HEVC Advance Patent Pool Updated Pricing - December 18, 2015 2
Royalty Rates Summary Hardware Device Categories Examples Main Profiles Royalty (Region 1/2) Profile Extensions Any One (Region 1/2) Profile Extensions All Three (Region 1/2) Annual Category Cap Mobile Devices Mobile Phone, Tablet, Laptop PC $0.40/$0.20 +$0.10/$0.05 +$0.25/$0.125 Connected Home and Other Devices Set-Top Box, Game Console, Blu- Ray Player, Desktop PC, non-4k UHD+ TV, Software $30MM (All Mobile) $20MM (Excluding Phones) $0.80/$0.40 +$0.20/$0.10 +$0.50/$0.25 $20MM $40MM Combined Cap 4K UHD+ TV 4K UHD+ TV $1.20/$0.60 +$0.30/$0.15 +$0.75/$0.375 $20MM Content Distribution Categories Examples Main Profiles Royalty (Region 1/2) Profile Extensions Any One (Region 1/2) Profile Extensions All Three (Region 1/2) Annual Category Cap Free-to-End User Public TV, 100% Ad-Funded Commercial Broadcast TV and Internet Content Distribution Waived (Free) Waived (Free) Waived (Free) N/A Subscription Title-by-Title Digital Media Storage OTT Subscription, Cable TV, Satellite TV Pay-per-View, OTT Streaming Rental, Download to Own Blu-Ray Disc, other storage devices Per Subscriber/Month 2016-17: 0.5¢/0.25¢ 2018-19: 1.5¢/0.75¢ 2020+: 2.5¢/1.25¢ Per Title 2.5¢/1.25¢ Per Media/Title 2.5¢/1.25¢ Included in Main Profile Included in Main Profile Included in Main Profile Included in Main Profile Included in Main Profile Included in Main Profile $2.5MM $2.5MM $2.5MM $5MM Combined Cap HEVC Advance Patent Pool Updated Pricing - December 18, 2015 3
Page 1: HEVC Advance Patent Pool Updated Pr
Page 5 and 6: Key Concepts: Content Distribution
Page 7 and 8: Content Category Definitions “Tit
Page 9 and 10: HEVC Device Licensing Rates and Str
Page 11 and 12: Device Pricing Summary Device Categ
Page 13 and 14: Notes - Device Licensing • Multip
Page 15 and 16: Notes - General Licensing • Regio
Page 17 and 18: In Compliance Provisions • To be
Page 19 and 20: Notes - Software Licensing (cont.)

HEVC Advance Patent Pool Updated Pricing

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