AVC/H.264 License Terms
Codec Manufacture and Sale
8
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Products sold to end users and OEM for PC but not part of OS (decoder, encoder or product consisting of one decoder and one encoder = “unit”)
o
0 - 100,000 units/year = no royalty (available to one legal entity in an affiliated group)
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US $0.20 per unit after first 100,000 units/year
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Above 5 million units/year, royalty = US $0.10 per unit
o
Enterprise cap: $3.5M per year 2005-2006, $4.25M per year 2007-08, $5M per year 2009-10, $6.5Mper year 2011-2015; $8.125M in 2016 and $9.75M per year in 2017 through 2020
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An Enterprise selling branded OEM for PC OS may pay for its customer
o
0 - 100,000 units/year = no royalty (available to one legal entity in an affiliated group)
o
US $0.20 per unit after first 100,000 units/year
o
Above 5 million units/year, royalty = US $0.10 per unit
o
Enterprise cap: $3.5M per year 2005-2006, $4.25M per year 2007-08, $5M per year 2009-10, $6.5M per year 2011-2015; $8.125M in 2016 and $9.75M per year in 2017 through 2020
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Includes right to manufacture and sell AVC encoders and decoders with the right of End Users to use them for personal and consumer (including internal business) purposes without remuneration but not for other uses
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Royalties begin January 1, 2005