INTRODUCTION

MPEG LA's AVC/H.264 Patent Portfolio License provides access to essential patent rights for the AVC/H.264 (MPEG-4 Part 10) digital video coding standard used in set-top boxes, media player and other personal computer software, mobile devices including telephones and mobile television receivers, Blu-ray Disc^TM players and recorders, Blu-ray video optical discs, game machines, personal media player devices, still and video cameras, subscription and pay-per view or title video services, free broadcast television services and other products. To align with the real-world flow of AVC/H.264 commerce, reasonable royalties are apportioned throughout the AVC/H.264 value chain. The License employs annual limitations to provide cost predictability, threshold levels below which certain royalties will not be charged in order to encourage early-stage adopters and minimize the impact on lower volume users or demo products, and certain licensing options that require no royalty reports.