Streamcrest's MPEG-4 License Estimator

MPEG-4 Advanced Codecs License Estimator

This calculator will estimate annual royalties for systems using open-standard audio and video codecs. Just choose your desired codecs and fill in the unit shipment values for products you produce or content you distribute. You can compare codec costs just by clicking on a different one.

Note that because of per-entity caps, when calculating the cost of an entire system, each manufacturer or content distributor's contribution should be entered seperately.

This page is self-contained and may be used off-line. Check here for the latest version. Of course, this calculator is not an official estimate of royalties - contact the licensing agents (listed below) for more information.

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Choose Your Desired Technology

Video

Audio

	MPEG-4 AVC (part 10/H.264)
	MPEG-4 SP, ASP (part 2)
	MPEG-2
	No Video

	MPEG-4 AAC-HE
	MPEG-4 AAC
	MPEG-2 AAC
	MPEG-1 Layer3 (MP3)
	No Audio

	Mono
	Stereo
	5.1 Multichannel

Use of the MPEG-4 systems layer has not been considered here.

Video products you will produce as final manufacturer

	other	as PC Software
Encoders (annual units)
Decoders (annual units)
Codecs (annual units)

If you expect to sell under 50,000 units of these products and collect less than $500,000 from their sale, check this box .
PC Software means for a traditional desktop or laptop computer, not a PDA device, and is for retail applications software only. Special terms are available for software pre-installed by a hardware OEM in some cases which are not considered. Special terms for temporary decoders provided with content are not considered. Professional video encoders exception for part 2 Stored Content and MPEG-2 Packaged Media ignored. Under Via terms for AVC, enter only the number of end-user products, for others enter the number of encoder, decoder, codec systems in the products.

Audio products you will produce as final manufacturer

	other	as PC Software
Professional Decoders (annual units)
Professional Encoders (annual units)		@ Each
Professional Codecs (annual units)		@Each
Consumer Encoders (annual units)
Consumer Decoders (annual units)
Consumer Codecs (annual units)

PC Software means for a traditional desktop or laptop computer, not a PDA device, and is for retail applications software only. Special terms are available for software pre-installed by a hardware OEM in some cases which are not considered. Special terms for temporary decoders provided with content are not considered. Manufacturer is assumed to ship only one MPEG-4 AAC consumer PC software product. Professional Codec Price is end-user retail price. For MP3, it is assumed you have not purchased a DSP or ASIC chip for which a license has already been paid.

Electronically distributed content you will sell under your brand

Pay-per-view basis:
	Titles 0-11 minutes (annual units)
	Titles 12-30 minutes (annual units)
	Titles 31-90 minutes (annual units)
	Titles longer than 90 minutes (annual units)
Subscription basis:
	Number of subscribers
Free Over-The-Air Broadcasting:
	Number of encoders used Per-market option of MPEG-LA AVC terms not considered
Estimated Annual Revenues from this content (mp3 terms)

If your total annual gross revenue is less than $100,000, check this box .

Physical media content you will replicate

Titles 0-11 minutes (annual units)
Titles 12-30 minutes (annual units)
Titles 31-60 minutes (annual units)
Titles 61-90 minutes (annual units)
Titles longer than 90 minutes (annual units)
Estimated Annual Revenues from this content (mp3 terms)

Calculations do not include "second movie" conditions of MPEG-2 or content sold for less than $1.00 for AVC.

Predict Market Development and Licensing Actions

MPEG-4 AVC (Part 10/H.264)

Pools of MPEG-4 AVC essential patents are being formed by Via Licensing and MPEG-LA. These two pools are contending for patent holder members and for licensees. At present, although there is some overlap in their members, a license from either would not include essential patents from the firms that are not in both. As licenses are offered and accepted, one pool may become dominant through competition, or both may gain full membership. Alternatively, it may be necessary for a user to take a license from both pools, or to negotiate with outside patent holders individually.

	I will license from the MPEG-LA pool
	I will license from the Via pool
	I think a license from both pools will be needed, and I estimate each will charge % of their proposed rates.

Your License Fees (on annual basis in USD)

	MPEG-LA	Via	Thomson	Total
Video Products			---
Video Content			---
Audio Products	---
Total

Caps and fees calculated based on initial (2005) values, Via initial fees of $15K not included. This document uses the "," character as a thousands seperator and the "." character as the decimal point or seperator (American convention).

Please consult the following licensing agents for definitive terms and conditions of licensing:

MPEG-LA: MPEG-2, MPEG-4, AVC
Via Licensing: AAC, AAC-HE, AVC
Thomson: MP3

Please report any errors to

Streamcrest has used ordinary care in preparing this model. While it has been checked and tested using some routine cases and methods, your use of it is at your own risk. You have paid nothing for this program, and should expect nothing from it. Its source code is readily availble for inspection and verification by using the "view source" feature of your web browser. It is possible the model contains errors, and before making any financial decisions, it would be worthwhile to check the results by hand or alternate programs.
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