In “Video Streaming: The New Frontier of SEP Disputes,” Kirti Gupta, Georgios Effraimidis, and Elias Ilin discuss how digital video compression standards have become the new frontier for standard essential patent (SEP) litigation, mirroring the intensity of earlier smartphone patent wars. As video codecs now underpin hundreds of billions of dollars in annual revenue across streaming platforms, consumer electronics, and cloud infrastructure, the industry faces significant pressure to establish reliable Fair, Reasonable and Non-Discriminatory (FRAND) licensing frameworks.
Key Insights
- Video codec SEPs are becoming a major global litigation battleground. As streaming, AI, and cloud applications expand, disputes over video compression standards (H.264, HEVC, VVC) increasingly resemble earlier smartphone patent wars, with coordinated multi-jurisdictional enforcement across courts worldwide.
- The licensing landscape is evolving and becoming more fragmented. While earlier standards relied largely on a single patent pool model (e.g., MPEG-LA for H.264), newer codecs involve multiple pools, independent licensors, and competing royalty structures.
- Antitrust policy around SEPs is shifting toward a more balanced approach. Recent U.S. Department of Justice (DOJ) and U.S. Patent and Trademark Office (USPTO) actions emphasize that strong patent enforcement—including injunctions in appropriate cases—can coexist with competition policy.
- Coherent FRAND valuation frameworks are becoming increasingly critical. Economically grounded methods—such as comparable licenses, top-down royalty analysis, and incremental value approaches—remain key to resolving disputes and supporting continued innovation and adoption.
Conclusion
As video streaming, AI, and cloud applications expand, video codec SEPs are likely to remain a focal point of global litigation and policy debates. Clear and economically grounded FRAND valuation frameworks will be increasingly important to help resolve disputes and support continued innovation in the digital video ecosystem.
This article was originally published by the American Bar Association’s Antitrust Law Section in March 2026.
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