New LexisNexis IPlytics VVC patent report shows: Video technology will shape the future

Berlin, June 26th 2024. LexisNexis Intellectual Property Solutions the leading provider of intelligent patent analytics brings unprecedented transparency to one of the world’s most important technologies and complex licensing markets in their 2024 report: Who Is Leading the VVC Patent Race? (lexisnexisip.com). On Wednesday, July 31st, at 11 am ET / 5 pm CET, we are hosting a webinar to address the current SEP licensing challenges in the video codec space. During the webinar, I will be joined by Luke McLeroy, President of Avanci Video; Manoj Deshpande, Senior Director at Qualcomm; Robert J. L. Moore of Moore IP Solutions; and John Mulgrew, Chief IP Officer at Lenovo, for an in-depth discussion on SEP licensing in the video coding market. Register here: https://www.lexisnexisip.com/resources/vvc-webinar/

The widespread availability of high-speed internet and video streaming services has led to a surge in video streaming and conferencing. Platforms like Netflix, Amazon Prime Video, YouTube, and Disney+ have seen significant subscriber growth. This shift has also boosted online video advertising, which has grown rapidly due to the expansion of digital platforms and changing consumer behaviour. According to Statista, global spending on digital video advertising was about $45.9 billion in 2019 and is projected to reach $120 billion by 2024. Social media platforms like YouTube, Facebook, Instagram, and TikTok have become major channels for video ads.

Emerging applications, such as automated video monitoring in manufacturing and remote surgery in healthcare, are further driving the demand for video content. It is estimated that in five years, half of global video traffic will be consumed by machines rather than humans, with Versatile Video Coding (#VVC) delivering optimized video for tasks like autonomous vehicle camera vision and industrial robots. VVC was developed to meet the growing need for efficient video compression and to support new applications.

However, implementing VVC in next-generation products requires navigating the complex landscape of thousands of Standard Essential Patents (SEPs). SEP holders will demand royalties from manufacturers using VVC, and these fees must be factored into the cost of bringing products to the global market.

Adding a new layer of transparency to the Video Codec innovation space?

The latest edition of the LexisNexis Intellectual Property Solutions report builds on one of the world’s most comprehensive and up-to-date patent data sets from LexisNexis IPlytics GmbH . Transparency regarding HEVC and VVC patent ownership is crucial because the standard organization ITU-T does not systematically collect patent declarations but allows companies to only make blanket statements. It is estimated that only about 10% of worldwide HEVC and VVC SEPs (standard essential patents) are listed in the ITU-T register. However, the VVC patent pool programs from Via LA and Access Advance provide lists of patents verified by third parties as essential for VVC technology. Despite this, two-thirds of VVC patent owners have not yet joined one of these patent pools, leaving public data on VVC patents incomplete. While the VVC patent lists from patent pools and specific ITU-T patent declarations are a starting point, they do not provide a complete picture of the VVC patent landscape.

To identify AVC, HEVC and VVC undeclared patents, LexisNexis IPlytics GmbH has utilized the LexisNexis PatentSight+ Classification (powered by LexisNexis Cipher ) to identify video standard-related patents. In addition to patent data, the report also uses VVC standards contribution data to rank the industry players but also factors in the Patent Asset Index, an industry-acknowledged patent valuation metric.

A comprehensive understanding of the HEVC/VVC patent landscape is crucial for successful SEP licensing. LexisNexis IPlytics’ analysis uncovers related patents not publicly listed, providing a more thorough and accurate view of the patent landscape. This complete perspective helps fill existing data gaps and addresses pressing uncertainties in the video patent licensing market, as illustrated in Figure 1.

Mapping out the numerators and denominators enables the determination of individual patent holders’ and pools’ share of all relevant HEVC/VVC patents.

The latest report: Who Is Leading the VVC Patent Race? (lexisnexisip.com) concludes that efficient video compression plays a crucial role in ongoing economic advancement worldwide. Currently, the bulk of video transmitted over the Internet is encoded using AVC and HEVC. However, as we approach the technological limits of these codecs, VVC is emerging as the next-generation solution to meet industry demands for video compression. The widespread deployment of VVC will inevitably bring up the issue of licensing VVC SEPs. Senior IP professionals should keep the following points in mind regarding VVC patents:?

--> Future technologies reliant on video will increasingly depend on patented technology standards like HEVC/VVC.?

--> Patent portfolio managers and IP licensing executives should not only rely on incomplete information from public registers such as pools or standards organizations but also monitor a comprehensive database on HEVC/VVC-related patents and standards contributions.?

--> Manufacturers of HEVC/VVC-compliant products should be prepared for patent holders and pools and platform to request royalties. Here, internet streaming companies will now be approached to pay video codec SEP royalties based on streaming hours

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