In page 2 of The AVC Licensing terms (
http://www.mpegla.com/main/programs/avc/Documents/AVC_TermsSummary.pdf)
Quote:
In the case of the (a) encoder and decoder manufacturer sublicenses:
For (a) (1) branded encoder and decoder products sold both to end users and on an OEM
basis for incorporation into personal computers but not part of an operating system (a
decoder, encoder, or product consisting of one decoder and one encoder = unit),
royalties (beginning January 1, 2005) per legal entity are 0 - 100,000 units per year = no
royalty (this threshold is available to one legal entity in an affiliated group); US $0.20 per
unit after first 100,000 units each year; above 5 million units per year, royalty = US $0.10
per unit.
The maximum annual royalty (cap) for an enterprise (commonly controlled
legal entities) is $3.5 million per year 2005-2006, $4.25 million per year 2007-08, $5
million per year 2009-10.8
For (a) (2) branded encoder and decoder products sold on an OEM basis for incorporation
into personal computers as part of a computer operating system, a legal entity may pay
for its customers as follows (beginning January 1, 2005): 0 - 100,000 units/year = no
royalty (available to one legal entity in an affiliated group); US $0.20 per unit after first
100,000 units/year; above 5 million units/year, royalty = US $0.10 per unit.
The
maximum annual royalty (cap) for an enterprise (commonly controlled legal entities) is
$3.5 million per year in 2005-2006, $4.25 million per year in 2007-08 and $5 million per
year in 2009-10.9
