FAQ

Please email any questions you have to our Q&A Department.

Q:What does the MPEG-2 Systems Patent Portfolio License cover?
A: The MPEG-2 Systems Patent Portfolio License provides coverage under the MPEG-2 Systems Patent Portfolio Patents for the MPEG-2 Systems standard as specified in ISO documents IS 13818-1 (including annexes C, D, F, J and K) in products without licensed MPEG-2 video encoders or decoders.

Q: What is the current Term of the MPEG-2 Systems Patent Portfolio License?
A: The current term runs through December 31, 2015. The License is renewable for successive five year periods for the useful life of any Portfolio patent on reasonable terms and conditions.

Q: Who are the essential patent holders ("Licensors") to the MPEG-2 Systems Patent Portfolio License?
A: The MPEG-2 Systems Patent Portfolio License currently includes essential patents owned by Alcatel Lucent, GE Technology Development, Inc., Hitachi, Ltd.*, Mitsubishi, Philips, Samsung Electronics Co., Ltd., Scientific Atlanta, and Thomson Licensing.

Q: Is there a limitation on the amount that royalty rates may increase at each renewal?
A: If royalty rates were to increase for a specific sublicense, they will not increase by more than 10% of the royalty rates for that sublicense set forth in the License immediately prior to renewal.

Q: How is the MPEG-2 Systems Patent Portfolio License organized?
A: Please refer to the License Agreement.

Q: What are the royalties for the MPEG-2 Systems Patent Portfolio License and on which products are they payable?
A: The royalty is US$0.50 for each product that constitutes or incorporates a fully functioning MPEG-2 Systems Device as defined in Section 1.9 of the License Agreement. In effect, such a product is one that uses the MPEG-2 Systems Standard without licensed MPEG-2 Video decoding or encoding functionality.

Q: What is the effect on Licensees when new patents are added to the MPEG-2 Systems Patent Portfolio License?
A: New Licensors and new patents are added with no increase in royalty rates during the current Term of the License. Licensees enjoy coverage under such patents from the License effective date (January 1, 2006) forward.

Q: What are the obligations of the Licensors with regard to their essential MPEG-2 Systems Essential patents?
A. Each Licensor is under an obligation to grant to MPEG LA a worldwide, nonexclusive license under all MPEG-2 Systems Essential Patents that it has the right to license or sublicense to allow MPEG LA to grant worldwide, non-exclusive sublicenses under such patents under terms of the MPEG-2 Systems Patent Portfolio License.

Q: How does MPEG LA ensure that sublicensing remains fair, reasonable and non-discriminatory?
A: The patent portfolio license offered by MPEG LA has the same terms and conditions for all licensees. Further, the license also ensures a fair process of obtaining new MPEG-2 Systems essential patents and for a licensee to license its own MPEG-2 Systems Essential Patents.

Q: If I have an MPEG-2 Transport Program Stream Product as defined in the MPEG-2 Patent Portfolio License, is that product covered by the MPEG-2 patent Portfolio License or the MPEG-2 Systems Patent Portfolio License?
A: It is covered under either of them, but under the MPEG-2 Systems Patent Portfolio License, the applicable royalty is US $0.50 per device while the applicable royalty under the MPEG-2 Patent Portfolio License is the greater of US $4.00 times greater of input or output streams. To the extent such a product is licensed with applicable patent holders under one of these agreements, it need not be licensed under the other.