The world of video compression is a complex web of technical and legal requirements, and the HEVC (High Efficiency Video Coding) codec is at the center of it all. This article delves into the reasons why tech companies are disabling HEVC support in their devices, the financial and legal implications for users, and the potential alternative codec, AV1 (AOMedia Video 1).
The Cost of HEVC Support
HEVC support is expensive, and it's not just the licensing fees that are a burden. The risk of lawsuits from patent holders can deter companies from incorporating HEVC support. The space is crowded with pending and settled lawsuits, intercorporate finger-pointing, and complex domestic and international legal concerns. This legal landscape can be a significant deterrent for companies, especially when they are already facing financial pressures.
The Financial Burden of HEVC Licensing
HEVC patent licensing deals typically happen behind closed doors and as part of newly consolidated and created programs. Companies can obtain patent licenses directly from a licensor and try to negotiate pricing or secure a deal that covers technologies beyond just HEVC. Some licensors work through third parties, like patent pool administrators, which allows licensees to offload pricing, operating principles, term negotiations, and other relevant housekeeping to the third party. Patent pools may also allow licensees to access thousands of patents from numerous holders.
Access Advance and Velos Media are the only non-licensor entities administering HEVC patent licenses in the US. That has been the case since December, when Access acquired Via Licensing Alliance’s HEVC/VVC program. Access administers licenses through patent pools that cover about 80 percent of global HEVC patents. The company launched in 2015 with licensing for 500 HEVC patents and currently administers licenses for almost 29,000. Velos, meanwhile, claims to cover 450 HEVC-related patents, though it ended its HEVC patent pool in 2023.
One of the most widely speculated reasons that tech companies are forgoing HEVC support is Access’ increased royalty rates for its HEVC Advance patent pool. The new royalty rates were originally supposed to take effect in January, but Access pushed the start date to July 1. HEVC Advance licensees agree to 10-year contracts, with royalty rates guaranteed not to increase in the first five years. After those five years, the terms may change, and royalty rates can increase by up to 20 percent.
The Legal Landscape of HEVC
The legal landscape of HEVC is complex and often contentious. The removal of HEVC support is less about patent pool fees and more about companies’ concerns about lawsuits from licensors that don’t work with pools. Such firms, he suggested, may be asking for “an outsized piece of the royalty stack disproportionate to what their patent holdings are.”
The Alternative: AV1
As HEVC support confuses users and challenges tech companies, an alternative codec addresses much of the complexity associated with HEVC. AOMedia Video 1 (AV1) was created as an open, royalty-free video codec by a group of companies called the Alliance for Open Media (AOMedia), which was tired of dealing with HEVC patent licensing. AV1 launched in 2018 under a royalty-free patent policy, and its reference implementations use a permissive software license.
Despite these challenges, AOMedia continues to push for AV1 adoption. In September 2024, the group said that about 95 percent of Netflix’s catalog and more than 50 percent of YouTube’s catalog are available in AV1. Some streaming services, including HBO Max, Peacock, and Paramount Plus, are still holding out.
