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`ETRI 2005
`Unified v. ETRI
`IPR2021-00827
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`Janua ry 9, 20 19 ( / ins igh ts /20 19 / 1 /9 / independen t -econom ic -
`s tudy -sugges ts -hevc - roya l t ies -shou ld -be -compa rab le - to -
`o r - less - than - ra tes - fo r -avc )
`Independen t
`econom ic s tudy
`A rch ive
`
`J O I N ( / J O I N )
`Z O N E S
`N P E ( / N P E )
`S E P ( / S E P )
`P A T R O L L ( H T T P S : / / P A T R O L L . U N I F I E D P A T E N T S . C O M / )
`P Q I ( / P Q I )
`A N A LY T I C S
`O P A L - L A N D S C A P E ( H T T P S : / / P O R T A L . U N I F I E D P A T E N T S . C O M / S T A N D A R D S / O P A L / H E V C )
`O P E N - S T A N D A R D S S U B M I S S I O N S
`( H T T P S : / / P O R T A L . U N I F I E D P A T E N T S . C O M / S T A N D A R D S / O P E N / H E V C )
`I S I X - B E S T L A W F I R M S ( H T T P S : / / P O R T A L . U N I F I E D P A T E N T S . C O M / P T A B / A N A LY T I C S / C A S E -
`L E V E L / I S I X ? S O R T = - F I L I N G _ D A T E )
`P V I X - P A T E N T V A L U E ( H T T P S : / / P O R T A L . U N I F I E D P A T E N T S . C O M / P A T E N T S / P O R T F O L I O )
`D A T A
`U P D A I LY ( / D O C K E T )
`P T A B ( H T T P S : / / P O R T A L . U N I F I E D P A T E N T S . C O M / P T A B / C A S E L I S T ? S O R T = - F I L I N G _ D A T E )
`L I T I G A T I O N ( H T T P S : / / P O R T A L . U N I F I E D P A T E N T S . C O M / L I T I G A T I O N / C A S E L I S T )
`E X A M I N E R ( H T T P S : / / P O R T A L . U N I F I E D P A T E N T S . C O M / P A T E N T S / E X A M I N E R )
`P A T E N T S ( H T T P S : / / P O R T A L . U N I F I E D P A T E N T S . C O M / P A T E N T S / S E A R C H )
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`R P I ( / R P I )
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`I N S I G H T S W E B I N A R ( / I N S I G H T S - W E B I N A R )
`A B O U T
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`E V E N T S ( / E V E N T S )
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`T E A M ( / T E A M )
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`(h t tp : / /www.un i f iedpa ten t s .com / in s igh t
`fo rma t = r s s )
`2
`
`sugges ts HEVC
`roya l t ies shou ld be
`compa rab le to o r less
`than ra tes fo r AVC
`( / ins igh ts /20 19 / 1 /9 / independen t -
`econom ic -s tudy -
`sugges ts -hevc -
`roya l t ies -shou ld -be -
`compa rab le - to -o r -
`less - than - ra tes - fo r -
`avc )
`Un i f ied is p leased to announce the re lease o f i ts f i rs t
`comp rehens ive ob jec t ive econom ic eva lua t ion (OVAL )
`s tudy o f HEVC / H .265 s tanda rd -essen t ia l pa ten t roya l ty
`ra tes .  The s tudy is a pa r t o f Un i f ied ’s
`V ideo Codec Zone
`(h t tps : / /www.un i f iedpa ten ts .com /sep /#v ideo -codec ) whose
`goa l is to p rov ide ob jec t ive , independen t ev idence
`re fu t ing unsubs tan t ia ted Standa rd Essen t ia l Pa ten ts (SEP )
`l icens ing demands . In con junc t ion w i th Un i f ied ’s
`Ob jec t ive
`Pa ten t Landscape (OPAL )
`(h t tps : / /www.un i f iedpa ten ts .com /opa l / ) , compan ies can
`now ob jec t ive ly eva lua te HEVC imp lemen ta t ion cos t and
`r isk . OPAL & OVAL a re in tended to ass is t a company ’s
`l i t iga t ion s t ra tegy and /o r nego t ia t ions based on good - fa i th
`Fa i r, Reasonab le , And Non -D isc r im ina to ry (FRAND )
`p r inc ip les .
`Email Address
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`

`3
`
`The 35 -page repo r t demons t ra tes tha t HEVC ra tes shou ld
`be compa rab le to o r less than the cos t o f l icens ing the
`ma in pa ten t poo l fo r AVC (MPEGLA ) , HEVC ’s p redecesso r
`codec .   I t conc ludes tha t the to ta l pe r un i t HEVC pa ten t
`roya l ty shou ld mos t l ike ly fa l l be tween $0.08 and $0.28
`pe r un i t , depend ing on use case and dev ice type . The
`repo r t takes in to accoun t HEVC ’s ma rg ina l imp rovemen t in
`comp ress ion bu t o f fse ts i t aga ins t fac to rs such as the
`d im in ish ing va lue o f s to rage and bandw id th .  
`The ana lys is sugges ts tha t some l icenso rs a re subs tan t ia l ly
`ove rva lu ing HEVC , wh ich has resu l ted in , among o the r
`th ings , unsubs tan t ia ted roya l ty demands and roya l ty
`s tack ing ove r mu l t ip le poo ls .  The repo r t su rveyed sub jec t -
`ma t te r expe r ts in a reas such as v ideo comp ress ion
`evo lu t ion , ma rke t adop t ion , and imp lemen ta t ion cos ts .
`The fu l l repo r t is ava i lab le to membe rs o f the
`V ideo Codec
`Zone (h t tps : / /www.un i f iedpa ten ts .com /sep /#v ideo -codec ) ,
`the on ly so lu t ion ava i lab le to p rov ide independen t means
`to eva lua te essen t ia l i ty, pa ten tab i l i ty, and cos ts fo r HEVC
`o r o the r codecs (such as AV 1 , VP9, and VVC / H .266 ) .  
`H EVC L i c e n s i n g Tr a n s p a r e n c y Re p o r t
`

`

`4
`
`Un i f ied comm iss ioned D r. Ma r io A . Lopez f rom econom ic
`consu l t ing f i rm
`Edgewo r th Econom ics
`(h t tps : / /edgewo r theconom ics .com / ) and Ma r t in Bade r o f
`law f i rm Sheppa rd Mu l l in , to deve lop a me thodo logy
`g rounded in econom ic theo ry, rea l -wo r ld da ta , and recen t
`lega l dec is ions .  The au tho rs o f th is repo r t have been
`invo lved in many SEP and FRAND ma t te rs ove r the pas t
`decade .
`H EVC Pa t e n t L i c e n s i n g L a n d s c a p e
`NOTE : Cha r t Upda ted f rom Jona tan Samue lsson (D iv ideon )
`(o r ig ina l ) .
`The repo r t found tha t each o f the th ree ma jo r l icenso rs a re
`ask ing fo r l icens ing ra tes tha t l ike ly exceed wha t the to ta l
`HEVC ra te shou ld be , bo th ind iv idua l ly and when taken
`toge the r.    O f the ma jo r poo ls , MPEG -LA and HEVC
`Advance have pub l ic ly d isc losed ra tes f rom $0.20 to ove r
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`

`5
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`$ 1 .50 pe r un i t , w i th a yea r ly cap o f up to $40 m i l l ion .
`Ve los Med ia has no t d isc losed p r ic ing , bu t i ts ra tes a re
`rumo red to be ove r $ 1 .00 w i thou t any annua l cap [ 1 ] .
`Fo r po ten t ia l l icensees , these ra tes , when s tacked
`toge the r—w i thou t even tak ing in to accoun t o the r rumo red
`l icenso rs such as Nok ia and In te rd ig i ta l—amoun t to a ten -
`fo ld roya l ty ra te inc rease f rom the p redecesso r AVC
`s tanda rd .
`Un i f ied be l ieves th is repo r t p rov ides l icenso rs and
`imp lemen te rs an ob jec t ive , i l lum ina t ing means to he lp a l l
`to de te rm ine the app rop r ia te FRAND ra te and to ensu re
`tha t eve ryone is fu l ly and app rop r ia te ly compensa ted
`w i thou t de lay ing o r endange r ing adop t ion .  L icenso rs a re
`u rged to p rov ide a fu l l me thodo logy fo r the i r p r ic ing in
`response , to he lp eve ryone in the ma rke t make be t te r
`dec is ions and to a l lev ia te conce rns tha t cu r ren t p roposed
`ra tes exceed FRAND ra tes .
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`
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`6
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`7 L ikes
`
`Newe r Pos t
`Un i f ied seeks expe r ienced
`pa ten t a t to rneys to jo in i ts
`g row ing lega l team
`( / ins igh ts /20 19 / 1 / 1 1 /un i f ied -
`seeks -expe r ienced -pa ten t -
`a t to rneys - to -add - to - i ts -
`g row ing - lega l - team )
`O lde r Pos t
`Po r ta l Commun ica t ions
`(Dom in ion Ha rbo r ) pa ten t
`cha l lenged as l ike ly inva l id
`( / ins igh ts /20 19 / 1 /4 /po r ta l -
`commun ica t ions -dom in ion -
`ha rbo r -pa ten t -cha l lenged -
`as - l ike ly - inva l id )
`[1 ] Ve los does no t pub l ish the i r ra tes so i t is an es t ima te
`based on indus t ry da ta .  HEVC Advance does no t p rov ide
`caps du r ing such pe r iod when a l icensee is in no t in
`comp l iance w i th the HEVC Advance Pa ten t Po r t fo l io
`L icense .
`
` Sha re
`C O N T A C T U S
`H O M E ( / H O M E )
`S O L U T I O N ( / N P E )
`

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`7
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`( 6 5 0 ) 9 9 9 - 0 8 8 9 I N F O @ U N I F I E D P A T E N T S . C O M ( M A I LT O : I N F O @ U N I F I E D P A T E N T S . C O M )
`Copy r igh t © 2020 Un i f ied Pa ten ts , LLC .  A l l r igh ts rese rved .
`Lega l ( / te rm -o f -se rv ices )   |  P r ivacy Po l icy ( /p r ivacy -po l icy ) | DMCA
`(h t tp : / /un i f iedpa ten ts .com /dmca )
`( H T T
`P A T
`( H T T
`N E W S ( / N E W S )
`A B O U T ( / A B O U T )
`J O I N ( / J O I N )
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