MPEG2 Patent Portfolio License

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• MPEG-2 Patent Portfolio License
• Briefing
• This presentation is for information purposes
  only.
• Actual license agreements will provide the only
  definitive and reliable statement of license
  terms.

V04/27/06
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Coverage

• Each patent in the MPEG-2 Patent Portfolio
  License is essential for implementing a portion
  of the
• MPEG-2 Video and Systems specification
• focusing now on main profile includes HDTV,
  excludes scalable extensions

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Coverage

• Essential is defined, in the context of the
  main profile, as well as for a given legal
  jurisdiction of patent authority, as
• directly documented on MPEG-2 video standard
  (excluding scalable extensions) as clarified but
  not extended by the MPEG-2 conformance document
  or
• directly documented on MPEG-2 systems standard
  and the following annexes
• C. Program Specific Information
• D. ITU-T Rec. H.222.0 Systems Timing Model and
  Application Implications
• F. Graphics of Syntax for systems
• K. Interfacing Jitter Inducing Networks to MPEG-2
  Decoders
• L. Splicing Transport Streams

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Coverage

• Patents covering specific implementations are not
  essential and are not in the Portfolio
• Some examples of specific implementations are
• butterfly DCT circuits, telescopic motion vector
  search, smart encoding techniques, such as using
  the output of the motion compensation or motion
  estimation to control the quantizer, intra-slice
  refresh, etc.

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Coverage

• In selecting the US patents in the Portfolio, we
  studied
• over 8,000 US patent abstracts,
• over 1,000 US patents,
• over 80 US patent prosecution histories,
• owned by over 100 assignees

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The Owners of the MPEG-2 Patents in the Portfolio
Coverage

• Alcatel
• Canon Inc.
• CIF Licensing, LLC
• Columbia University
• France Télécom RD
• Fujitsu
• GE Technology Development, Inc.
• General Instrument Corp.
• Hitachi, Ltd.
• KDDI Corporation
• LG Electronics Inc.
• Matsushita

• Mitsubishi
• Nippon Telegraph and Telephone Corporation (NTT)
• Philips
• Robert Bosch GmbH
• Samsung Electronics Co., Ltd.
• SANYO Electric Co., Ltd.
• Scientific Atlanta
• Sharp Corporation
• Sony
• Thomson Licensing
• Toshiba Corporation
• Victor Company of Japan, Limited (JVC)

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Coverage

• Worldwide coverage - more than 795 patents
• US, Japan, Europe, other countries
• In publication jurisdictions published
  applications covered
• Licensors include all of their essential patents
• The number of essential patent families currently
  in the Portfolio is 139 (95 have US)
• Essential counterparts in other countries also
  included
• Attachment 1 to the MPEG-2 Patent Portfolio
  License is updated regularly

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Coverage

• More patents in the evaluation pipeline
• New Licensors and essential patents may be added
  at no additional royalty during term coverage
  for whole term

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Coverage

• Key Technologies in the MPEG-2 Standard covered
  by Patents in the Portfolio
• Spatial Encoding
• Motion Compensation
• Picture Sequence
• Bit Rate Control
• Systems
• Illustrative examples of patents in each patent
  family appear in slides 10-22
• See also http//www.mpegla.com/m2/m2-essentiality.
  cfm for a cross-reference chart showing
  illustrative essential claims

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Coverage
Spatial Encoding
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Coverage
Spatial Encoding (contd)
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Coverage
Spatial Encoding (contd)
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Coverage
Motion Compensation
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Coverage
Motion Compensation (contd)
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Coverage
Motion Compensation (contd)
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Coverage
Motion Compensation (contd)
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Coverage
Picture Sequence
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Coverage
Picture Sequence (contd)
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Coverage
Bit Rate Control
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Coverage
Systems
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Coverage
Systems (contd)
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Coverage
Systems (contd)
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Product Categories Examples

• MPEG-2 Decoders
• MPEG-2 Encoders
• Consumer Products
• Packaged Medium
• Transport or Program Stream Products
• Intermediate Products

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Product Categories Examples

• MPEG-2 Decoders
• Set-top boxes
• TV receivers
• DVD Players
• Packaged Medium playback equipment
• Computers
• with hardware decoder
• loaded with decode software
• Software to end users- bundled or not
• Royalty 2.50 from Jan. 1, 2002 / 4.00 per unit
  before Jan. 1, 2002

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• MPEG-2 Encoding Product
• Hardware encoders
• Computers
• with hardware encoder
• loaded with encode software
• Software sold to end users - bundled or not
• Not including right to use for Packaged Medium
• Royalty 2.50 from Jan. 1, 2002 / 4.00 per unit
  before Jan. 1, 2002

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• MPEG-2 Distribution Encoding Products
• Program encoders sold to commercial end-users for
  real-time terrestrial, cable, satellite, etc.,
  broadcast/distribution
• Not including right to use for Packaged Medium
• Royalty 2.50 x L from Jan. 1, 2002 / 4.00 x L
  before Jan. 1, 2002 where L is the number of
  programs encoded in parallel

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• Consumer Products Encode Decode
• DVD recorders
• Camcorders
• Tape recorders
• Computers
• with hardware encoder/decoder
• loaded with encode/decode software
• Software sold to end users - bundled or not
• Royalty 2.50 from Jan. 1, 2002 / 6.00 per unit
  before Jan. 1, 2002

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Product Categories Examples

• MPEG-2 Packaged Medium (e.g., DVD discs with
  MPEG-2 data)
• 0.03 from March 1, 2003 for the first MPEG-2
  Video Event1 per copy (US 0.04 before Sept. 1,
  2001, 0.035 from Sept. 1, 2001 Feb. 28, 2003),
  plus
• US 0.01 for each additional 30 minutes or
  portion recorded on the same copy
• Not to Exceed
• US 0.03 for a single Movie2 (US 0.04 before
  Sept. 1, 2001, US 0.035 from Sept. 1, 2001- Feb.
  28, 2003)
• US 0.02 for the second Movie recorded on the
  same copy as the first Movie
• US 0.01 for each copy having a normal playing
  time up to and including but not more than 12
  minutes of MPEG-2 video
• Alternatively (for MPEG-2 Packaged Medium
  products from September 1, 2005), a Licensee may
  elect to pay US 0.03 for each MPEG-2 video disc
  regardless of its specific content or playing
  time (except when playing time is 12 minutes or
  less where royalty is still US 0.01)
• 1MPEG-2 video information with normal playing
  time up to and including 133 minutes
• 2Movie Single motion picture and related
  materials (but not a second picture whether or
  not related)

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• MPEG-2 Transport or Program Stream Products
• File Servers
• Multiplexers
• Royalty 4.00 x N where N is the greater of
  input and output streams

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• Intermediate Products
• IC Chips
• Circuit Boards
• Subassemblies
• Firmware Software
• Royalty License to make and sell, end user
  product bears royalty
• Notice of need for license and payment of royalty
  required to be given to customers who incorporate
  the intermediate product into their end products