MPEG-LA reveals HEVC / H.265 license fees – free for some, $25 million for others

MPEG LA today announced the availability of the HEVC Patent Portfolio Licence (“HEVC Licence”). The joint licence includes patents that are essential to the high efficiency video coding standard (HEVC, also known as H.265 and MPEG-H Part 2) designed to improve video coding and transmission efficiency. HEVC is expected to deliver next generation higher resolution HDTV video by broadcast, streaming, download, and 4K Blu-ray for 4K and 8K ultra high definition TV.

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Companies that want to use HEVC in their products can license the technology from MPEG LA in a single transaction. Without the MPEG LA license the companies would have to negotiate license from each of the about 20 HEVC patent holders. Essential patent holders include Apple, Hitachi, JVC, NEC, Samsung and Siemens.

The license fee depends on how many products you sell to end users:

  • 0 – 100,000 products sold means companies don’t have to pay for a license
  • After the first 100,000 products licensees have to pay $0.20 per unit per year
  • The maximum royalty to be paid by an enterprise is $25 million

The license includes the right to make, use and sell products containing HEVC technology and no separate license for HEVC content is required.