Chips&Media Patents VVC Video Standard, Poised for Additional Royalty Revenue

Seoul, South Korea – Feb 17, 2025 -- Chips&Media (094360) announced on February 3rd that it has begun receiving royalty revenue following the registration of a patent for the next-generation video codec standard, VVC (Versatile Video Coding). This patent, jointly filed by Chips&Media and the Electronics and Telecommunications Research Institute (ETRI), represents the successful culmination of a technical collaboration between the two organizations.

VVC, a high-efficiency video compression standard, succeeds HEVC (H.265) and boasts twice the efficiency. Optimized for the burgeoning VR and 360-degree video market, VVC supports 16K ultra-high resolution, HDR (10- and 16-bit color depth and up to 10,000 nits’ brightness), and frame rates from 0 to 120 fps. Market trends, driven by VR market growth and display advancements, are accelerating the adoption of this technology.

This patent registration mandates that major set makers utilizing VVC technology pay royalties. These royalties are distributed equitably among the companies holding VVC standard patents, with Chips&Media now a beneficiary.

"This achievement is the result of independent technology development and collaborative research with our partner, ETRI," the company stated. "We anticipate growth in sales volume due to the expansion of a new video standard royalty revenue model, supplementing our existing IP business."

Industry experts project steady growth in royalty revenues for patent-holding companies as the VVC standard proliferates. The rapid expansion of high-speed networks and streaming services further underscores the increasing importance of next-generation video codec technology as a key industrial asset.