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HEVC Advance Patent Pool no longer used by Technicolor

By Jan Ozer

HEVC Advance

Will HEVC Advance Reduce its Royalty Rate?

On Wednesday, February 3rd, 2016, Technicolor issued a press release stating that the company had decided to “license its HEVC Advance IP portfolio directly to device manufacturers rather than through the HEVC Advance patent pool.” The release further stated that Technicolor had signed a “material patent license” with an unspecified third party which it hoped would “pave the way for the industry to adopt the HEVC standard.”

Technicolor indicated that it had “chosen to license its patents for use in devices and does not plan to license industry players for content streaming.” It hinted at its motivation for leaving HEVC Advance by commenting that the “early licensing success demonstrates the quality of Technicolor’s IP position…and provides evidence of the Group’s ability to generate value more effectively than would have been possible through participation in a patent pool.” In other words, Technicolor felt that it could make more money faster by licensing separately.

Later the same day, HEVC Advance issued a press release thanking Technicolor for its participation in the pool, and specifying that it was removing the 12 Technicolor patents from the HEVC Advance Patent pool. The release goes on to claim that, “HEVC Advance remains the most effective and efficient means to acquire a license to a substantial portfolio of the most important and foundational HEVC essential patents.”

Will HEVC Advance Reduce its Royalty Rate?

No. Technicolor has 12 patents, leaving about 390 remaining on the patent list, with several hundred more to come once MediaTek’s patents make it through the examination process, Moller says.

“HEVC Advance does not believe that Technicolor has a material portfolio of HEVC essential patents,” Moller adds, leading to the decision not to reduce prices.

On a positive note, royalty prices won’t increase when additional licensors join the pool, or when existing licensors add patents to the pool, which Moller expects to grow significantly over the next few years.

Read More on streamingmedia.com

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