AAC License Fees – Standard Rate and Alternative Rate Structures

 

 

Standard Rate Structure

Worldwide Rates

Volume(per unit* / annual reset)Per Unit Fee
For the first 1 to 500,000 units $ 0.98
For units 500,001 to 1,000,000 $ 0.78
For units 1,000,001 to 2,000,000 $ 0.68
For units 2,000,001 to 5,000,000 $ 0.45
For units 5,000,001 to 10,000,000 $ 0.42
For units 10,000,001 to 20,000,000 $ 0.22
For units 20,000,001 to 50,000,000 $ 0.20
For units 50,000,001 to 75,000,000 $ 0.15
For units 75,000,001 and more $ 0.10
* Consumer Products with more than two Channels count as 1.5 units.

Alternative Rate Structure

Region-Based Rates

As an alternative to the Standard Rate Structure, a licensee may elect (as further explained in the AAC Patent License Agreement, “PLA”) to pay for Licensed Products according to the following rate tables; the first rate table for Licensed Products Sold in, or Sold for use in, R1 countries/regions (as defined here) and the second rate table for Licensed Products sold in, and for use in, R2 countries/regions (as defined here).

R1 Rate Table:

Volume(per unit* / annual reset)Per Unit Fee
For the first 1 to 500,000 units $ 0.98
For units 500,001 to 1,000,000 $ 0.78
For units 1,000,001 to 2,000,000 $ 0.68
For units 2,000,001 to 5,000,000 $ 0.45
For units 5,000,001 to 10,000,000 $ 0.42
For units 10,000,001 to 20,000,000 $ 0.22
For units 20,000,001 to 50,000,000 $ 0.20
For units 50,000,001 to 75,000,000 $ 0.15
For units 75,000,001 and more $ 0.10
* Consumer Products with more than two Channels count as 1.5 units.

R2 Rate Table:

Volume(per unit* / annual reset)Per Unit Fee
For the first 1 to 500,000 units $ 0.64
For units 500,001 to 1,000,000 $ 0.51
For units 1,000,001 to 2,000,000 $ 0.44
For units 2,000,001 to 5,000,000 $ 0.29
For units 5,000,001 to 10,000,000 $ 0.27
For units 10,000,001 to 20,000,000 $ 0.14
For units 20,000,001 to 50,000,000 $ 0.13
For units 50,000,001 to 75,000,000 $ 0.10
For units 75,000,001 and more $ 0.07
* Consumer Products with more than two Channels count as 1.5 units.

Licensed Products Sold in R1 regions and R2 regions must be reported separately. R1 volumes and R2 volumes may not be aggregated for purposes of determining the applicable rate under either the R1 or R2 rate table.

1 Additional information about the Alternative Rate Structure is presented in the FAQ page, here .

 

Note: This website description is not intended to replace or modify the full set of terms and conditions of the PLA. In the event of a conflict between this website description and the PLA, the PLA language shall govern.