The Brattle Group determined in a recently released report the aggregate value of video streaming technologies is already taken into account through existing device based royalty rates. Brattle considered various video codecs, streaming protocols, content delivery networks, and media players while excluding other technologies like wireless and Internet protocols.

The report follows the Club Goods economic theory, to determine viewers should pay a fixed fee irrespective of how much content is consumed. The value allocable to each patent holder should consider the substitutability of their patents and the component technology they cover.

Brattle determines a device-based royalty market has generated competition amongst various codecs, thus ensuring that innovation in this space remains vibrant and healthy while minimizing issues such as royalty stacking and double counting. Otherwise, they conclude there will be significant issues with a streaming-based royalty given so many different subscription models including ad based, annual, one-off live events, etc.  

The report was prepared for Unified Patents and is exclusively available to Unified Patents Video Codec Zone members. To join the Video Codec Zone or for more information on the Brattle report, please contact info@unifiedpatents.com.