HEVC Advance Says They Will “Adjust Fees” For Licensing HEVC Patents

It looks like patent licensing administrator HEVC Advance has finally realized that the fees they are charging content owners to license patents from their pool are too high. In a press release announcing that integrated circuit designer MediaTek has agreed to join HEVC Advance, they also mention that they have, “received significant market feedback, particularly on content fees, and will adjust fees to support widespread use of HEVC”. They haven’t yet said how the fee structure will change, but mention that HEVC Advance is actively soliciting input from market participants and considering adjustments to arrive at a royalty structure that enables continued and rapid adoption of HEVC. [see: New Patent Pool Wants 0.5% Of Every Content Owner/Distributor’s Gross Revenue For Higher Quality Video]

It’s a bit of a confusing message as they say they will “consider” adjusting fees, but then later say they “will adjust” them. Either way, it sounds like the companies that make up HEVC Advance are coming to their senses and realizing the rates they are charging are not ones that content owners are willing to pay. [see: Companies Should Reject Licensing Terms From HEVC Advance Patent Pool] I’ve reached out to HEVC Advance to see if they are willing to share more details, but I don’t expect them to be able to say too much right now. Either way this is good news for the industry as I have heard from numerous content owners who made it clear to me that they did not plan to pay the current fees to HEVC Advance and that they would fight any lawsuit brought against them by the patent holders. Lawsuits help no one, so coming to terms that both sides can agree on, that are actually fair, is a much better way to do it and the approach that HEVC Advance should have taken from day one.