Sisvel AV1 Patent Pool Royalty Rates Per Device

The Sisvel AV1 licensing pool establishes a standardized patent royalty framework for hardware manufacturers implementing the AV1 video codec. This article outlines how Sisvel categorizes consumer hardware into distinct tiers, the specific per-unit fees assigned to display and non-display devices, and the conditions governing compliant licensing rates.

Device Categorization and Fee Structure

Sisvel divides hardware using the AV1 specification into two primary product categories: Display Devices and Non-Display Devices. The royalty is assessed as a flat, per-unit fee based on this hardware classification:

• Display Devices: Products that include an integrated display screen—such as smartphones, tablets, laptops, personal computer monitors with integrated receivers, and smart televisions—carry a royalty rate of €0.50 per unit (or approximately $0.55 USD, depending on prevailing pool terms).
• Non-Display Devices: Hardware that decodes or encodes AV1 content but relies on an external display—such as set-top boxes, streaming media players, digital dongles, desktop computer towers, and standalone graphics processing units—is subject to a lower rate of €0.25 per unit.

Compliant vs. Non-Compliant Rates

Sisvel enforces a dual-pricing model designed to incentivize timely reporting and voluntary adoption:

1. Compliant Rate: The standard rates (€0.50 for display devices and €0.25 for non-display devices) apply exclusively to licensees who remain in full compliance with the agreement terms. Compliance requires regular, transparent reporting of shipped unit volumes and timely payment submissions.
2. Standard/Non-Compliant Rate: If a licensee defaults on reporting, delays payments, or requires legal enforcement actions to secure licensing, Sisvel applies higher non-compliant penalty rates, often double the baseline fee.

Scope of Application and Software Exclusions

Sisvel’s AV1 pool targets consumer hardware devices that incorporate AV1 decoding or encoding functionality. Key aspects of the pool’s scope include:

• Hardware Focus: Royalties are levied on end-product hardware makers (OEMs) who sell consumer-ready devices containing AV1 decoders or encoders.
• Software Exceptions: Sisvel’s standard terms generally exempt pure third-party application software distributed independently to end users, focusing liability instead on the operating system provider or the physical device vendor that integrates the codec framework.
• No General Device Caps: Unlike certain historical video codec pools (such as those for AVC/H.264), the Sisvel AV1 pool does not typically apply an annual aggregate royalty cap, meaning high-volume manufacturers pay the fixed rate per unit across all shipments.

Combined AV1 and VP9 Licensing

Because many patents within Sisvel's portfolio overlap between Google’s VP9 and the Alliance for Open Media’s AV1, Sisvel also offers joint licensing. Licensees producing devices that support both VP9 and AV1 can obtain a unified license that covers both codecs simultaneously, preventing separate, cumulative stacking fees for both standards on a single piece of hardware.