+ <title>MPEG LA on "Internet Broadcast AVC Video" licensing and non-private use</title>
+ <link>http://people.skolelinux.org/pere/blog/MPEG_LA_on__Internet_Broadcast_AVC_Video__licensing_and_non_private_use.html</link>
+ <guid isPermaLink="true">http://people.skolelinux.org/pere/blog/MPEG_LA_on__Internet_Broadcast_AVC_Video__licensing_and_non_private_use.html</guid>
+ <pubDate>Tue, 7 Jul 2015 09:50:00 +0200</pubDate>
+ <description><p>After asking the Norwegian Broadcasting Company (NRK)
+<a href="http://people.skolelinux.org/pere/blog/Hva_gj_r_at_NRK_kan_distribuere_H_264_video_uten_patentavtale_med_MPEG_LA_.html">why
+they can broadcast and stream H.264 video without an agreement with
+the MPEG LA</a>, I was wiser, but still confused. So I asked MPEG LA
+if their understanding matched that of NRK. As far as I can tell, it
+does not.</p>
+
+<p>I started by asking for more information about the various
+licensing classes and what exactly is covered by the "Internet
+Broadcast AVC Video" class that NRK pointed me at to explain why NRK
+did not need a license for streaming H.264 video:
+
+<p><blockquote>
+
+<p>According to
+<a href="http://www.mpegla.com/Lists/MPEG%20LA%20News%20List/Attachments/226/n-10-02-02.pdf">a
+MPEG LA press release dated 2010-02-02</a>, there is no charge when
+using MPEG AVC/H.264 according to the terms of "Internet Broadcast AVC
+Video". I am trying to understand exactly what the terms of "Internet
+Broadcast AVC Video" is, and wondered if you could help me. What
+exactly is covered by these terms, and what is not?</p>
+
+<p>The only source of more information I have been able to find is a
+PDF named
+<a href="http://www.mpegla.com/main/programs/avc/Documents/avcweb.pdf">AVC
+Patent Portfolio License Briefing</a>, which states this about the
+fees:</p>
+
+<ul>
+ <li>Where End User pays for AVC Video
+ <ul>
+ <li>Subscription (not limited by title) – 100,000 or fewer
+ subscribers/yr = no royalty; &gt; 100,000 to 250,000 subscribers/yr =
+ $25,000; &gt;250,000 to 500,000 subscribers/yr = $50,000; &gt;500,000 to
+ 1M subscribers/yr = $75,000; &gt;1M subscribers/yr = $100,000</li>
+
+ <li>Title-by-Title - 12 minutes or less = no royalty; &gt;12 minutes in
+ length = lower of (a) 2% or (b) $0.02 per title</li>
+ </ul></li>
+
+ <li>Where remuneration is from other sources
+ <ul>
+ <li>Free Television - (a) one-time $2,500 per transmission encoder or
+ (b) annual fee starting at $2,500 for &gt; 100,000 HH rising to
+ maximum $10,000 for &gt;1,000,000 HH</li>
+
+ <li>Internet Broadcast AVC Video (not title-by-title, not subscription)
+ – no royalty for life of the AVC Patent Portfolio License</li>
+ </ul></li>
+</ul>
+
+<p>Am I correct in assuming that the four categories listed is the
+categories used when selecting licensing terms, and that "Internet
+Broadcast AVC Video" is the category for things that do not fall into
+one of the other three categories? Can you point me to a good source
+explaining what is ment by "title-by-title" and "Free Television" in
+the license terms for AVC/H.264?</p>
+
+<p>Will a web service providing H.264 encoded video content in a
+"video on demand" fashing similar to Youtube and Vimeo, where no
+subscription is required and no payment is required from end users to
+get access to the videos, fall under the terms of the "Internet
+Broadcast AVC Video", ie no royalty for life of the AVC Patent
+Portfolio license? Does it matter if some users are subscribed to get
+access to personalized services?</p>
+
+<p>Note, this request and all answers will be published on the
+Internet.</p>
+</blockquote></p>
+
+<p>The answer came quickly from Benjamin J. Myers, Licensing Associate
+with the MPEG LA:</p>
+
+<p><blockquote>
+<p>Thank you for your message and for your interest in MPEG LA. We
+appreciate hearing from you and I will be happy to assist you.</p>
+
+<p>As you are aware, MPEG LA offers our AVC Patent Portfolio License
+which provides coverage under patents that are essential for use of
+the AVC/H.264 Standard (MPEG-4 Part 10). Specifically, coverage is
+provided for end products and video content that make use of AVC/H.264
+technology. Accordingly, the party offering such end products and
+video to End Users concludes the AVC License and is responsible for
+paying the applicable royalties.</p>
+
+<p>Regarding Internet Broadcast AVC Video, the AVC License generally
+defines such content to be video that is distributed to End Users over
+the Internet free-of-charge. Therefore, if a party offers a service
+which allows users to upload AVC/H.264 video to its website, and such
+AVC Video is delivered to End Users for free, then such video would
+receive coverage under the sublicense for Internet Broadcast AVC
+Video, which is not subject to any royalties for the life of the AVC
+License. This would also apply in the scenario where a user creates a
+free online account in order to receive a customized offering of free
+AVC Video content. In other words, as long as the End User is given
+access to or views AVC Video content at no cost to the End User, then
+no royalties would be payable under our AVC License.</p>
+
+<p>On the other hand, if End Users pay for access to AVC Video for a
+specific period of time (e.g., one month, one year, etc.), then such
+video would constitute Subscription AVC Video. In cases where AVC
+Video is delivered to End Users on a pay-per-view basis, then such
+content would constitute Title-by-Title AVC Video. If a party offers
+Subscription or Title-by-Title AVC Video to End Users, then they would
+be responsible for paying the applicable royalties you noted below.</p>
+
+<p>Finally, in the case where AVC Video is distributed for free
+through an "over-the-air, satellite and/or cable transmission", then
+such content would constitute Free Television AVC Video and would be
+subject to the applicable royalties.</p>
+
+<p>For your reference, I have attached
+<a href="http://people.skolelinux.org/pere/blog/images/2015-07-07-mpegla.pdf">a
+.pdf copy of the AVC License</a>. You will find the relevant
+sublicense information regarding AVC Video in Sections 2.2 through
+2.5, and the corresponding royalties in Section 3.1.2 through 3.1.4.
+You will also find the definitions of Title-by-Title AVC Video,
+Subscription AVC Video, Free Television AVC Video, and Internet
+Broadcast AVC Video in Section 1 of the License. Please note that the
+electronic copy is provided for informational purposes only and cannot
+be used for execution.</p>
+
+<p>I hope the above information is helpful. If you have additional
+questions or need further assistance with the AVC License, please feel
+free to contact me directly.</p>
+</blockquote></p>
+
+<p>Having a fresh copy of the license text was useful, and knowing
+that the definition of Title-by-Title required payment per title made
+me aware that my earlier understanding of that phrase had been wrong.
+But I still had a few questions:</p>