H.264 Streaming Fees: What Changed, Who's Affected, and What It Means
4 hours ago
- #Streaming Fees
- #H.264 Licensing
- #Patent Royalties
- Via Licensing Alliance introduced a new tiered fee structure for H.264 streaming licenses starting in 2026, replacing the previous flat $100,000 annual cap.
- The new fees scale with platform size, with Tier 1 platforms facing up to $4.5 million annually, while only small or nascent platforms retain the $100,000 fee.
- Existing licensees as of the end of 2025 are grandfathered under the old terms; the new structure applies only to unlicensed implementers seeking licenses from 2026 onward.
- The change reflects updated market conditions, as AVC streaming has become a significant business category since the original terms were set over a decade ago.
- Fees are assessed per legal entity and service category (e.g., OTT, FAST, social media), with separate caps for devices and streaming services, meaning streaming fees are not offset by device royalties.
- Despite many H.264 patents expiring, licensing obligations remain due to remaining essential patents, and FRAND rates consider portfolio strength and comparable licenses, not just patent count.
- Strategies like using only Baseline or Main profiles to avoid patents are complex and require detailed legal and technical analysis, as patent claims do not neatly align with profile labels.
- Territorial patent risks persist; even if patents are expired in most countries, enforceable patents in key markets can sustain licensing obligations.
- Large unlicensed services have options: negotiate, redesign to avoid patents, accept risk, or litigate, with negotiation being the primary avenue.
- The H.264 fee changes occur in a broader context of evolving codec licensing, including pools for HEVC, VP9, VVC, and AV1, impacting overall platform costs.