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1、Builtintothescheduleisa10%labelingdiscount;ifyou'reaTVvendoranddon'tdisplaytheHEVCAdvancelogo,yourroyaltyincreases10%to$1.65.There'salsoa25%"compliance"discount;ifyoudon'tvoluntarilypay,thebasepriceincreasesby25%.Again,ourTVvendorpriceincreasesfrom$1.50to$1.875,plu
2、sthe10%labelingdiscount,sinceifyoudidn'tpay,youprobablydidn'tlabel.Royaltiesstartatthedateoffirstsale,eventhoughyouwon'tbeabletosignalicenseuntilOctober1,2015. ThesepricesareabouttentimeshigherthanMPEGLAischarging andthereisnocap;MPEGLA'sroyaltyiscappedat$25million
3、annually.Guessinghere,Applewillhavesoldperhaps150millionHEVC-equippediPhone6and6PlusphonesbyOctober1,2015,whichmeansthey'llhavetowriteacheckforabout$120milliononOctober1.I'mthinkingthatAppleandotherhighvolumemanufacturerswillchallengetheroyaltyastoohighundertheFair
4、,Reasonable,andNon-Discriminatory(FRAND)pricingguidelinesthatcontroltechnologieslicensedaspartofastandard.Thoughthesuitwouldcost$2-$4million,it'salmostcertainlyworthit. MostTVandmobiledevicemanufacturersshouldhavebeenreservingforadditionalHEVCroyaltiessincetheystar
5、tedmanufacturingproductsthatusedthetechnology,thoughI'mguessingfewreservedinthepricerangeactuallysetbyHEVCAdvance.Ifnot,thesecompanieswillhavetoaddverysignificantadditionalreserveswhichtranslatestoashorttermfinancialhit. NotethatHEVCAdvanceisnotpursuingroyaltiesonp
6、rofessionalencodersanddecoders,hardwareorsoftware.Consumerdecoders,likethosecontainedinbrowsers,willbesubjecttotheroyaltyatthe$1.10rateforotherdevices.Withnocap,theroyaltyessentiallymeanswe'llneverseeHEVCplaybackinbrowsers. ContentRoyaltiesThoughtherearecontentroya
7、ltiesforMPEG-2andH.264intheMPEGLApatentpools,theHEVCgroupinexplicablydecidednottopursuecontentroyaltiesforHEVC.HEVCAdvanceischarging.5%,plusthe25%non-compliancepenaltyforthosewhodon'tpayvoluntarily.Theroyaltyappliestopay-per-viewandsubscriptionservices,plusvideotha
8、t'sadvertisingsupportedlikeESPNorCNN. IransomenumbersforaStreamingMediastoryonHEVCAdvance.Fora$4.00moviedownloadedfromAmazonPrimeorM-Go,theroyalt