A massive shift has rocked the video codec licensing market. In December 2025, patent pool giant Access Advance officially acquired the HEVC and VVC patent pool businesses of its competitor, Via LA.
While this industry restructuring might seem sudden, it is actually the climax of a multi-year, high-stakes legal battle over massive royalties and corporate pride between Samsung and MPEG-LA (now Via LA).
Based on public records, this article provides an in-depth analysis of the “50% Reduction Penalty” lawsuit that reshaped intellectual property (IP) practices, leading up to the dramatic acquisition at the end of last year.
1. The Root of the Dispute: What Was MPEG-LA’s “50% Reduction Penalty”?
This epic courtroom battle stems from the licensor agreement rules of the HEVC (H.265) patent pool formerly managed by MPEG-LA (which later merged with Via Licensing to become Via LA).
At the time, the pool included an incredibly strict penalty clause: if a licensor chose to exit the pool, their past and future royalty distributions from the pool would be permanently cut by 50%.
- MPEG-LA’s Goal: To prevent major patent holders from leaving the pool to start independent licensing activities or switching to competing pools (lock-in strategy).
- Samsung’s Grievance: Despite contributing a massive portfolio of HEVC standard-essential patents (SEPs) to the pool, Samsung viewed this clause as highly unfair—a retaliatory measure designed to restrict a licensor’s freedom to expand their business.
Arguing that the clause was unlawful, Samsung withdrew from the pool and filed a lawsuit in the New York State Court.
2. The Judicial Ruling: A Total Victory for Samsung
The lawsuit captured the attention of IP professionals worldwide as an unprecedented case testing the legal validity of exit penalties in patent pool agreements. In the end, the court sided entirely with Samsung.
- December 2023: Summary Judgment Victory in the Lower Court The New York State Supreme Court (trial level) granted Samsung’s motion for summary judgment. The court ruled that MPEG-LA’s “50% reduction penalty” clause was not a reasonable forecast of damages but rather an unenforceable “penalty” under contract law, rendering it null and void.
- October 2025: Appellate Court Affirms the Lower Court’s Decision Via LA appealed the ruling, but in October 2025, the Appellate Division of the New York State Supreme Court upheld the lower court’s decision. This solidified Samsung’s legal victory, completely stripping Via LA of its primary financial weapon against departing licensors.
3. December 2025: The Sudden Acquisition by Access Advance
Just two months after the appellate ruling, the market moved rapidly.
With its penalty clause invalidated, Via LA’s HEVC/VVC pool struggled to maintain its leverage over licensors. Sensing an opportunity, Access Advance—which had been locked in a fierce market-share battle with Via LA in the HEVC/VVC space for years—made its move.
In December 2025, Access Advance officially announced its acquisition of Via LA’s HEVC and VVC patent pool businesses.
Practical Benefits of the Acquisition: Previously, when implementers (licensees) integrated HEVC or the newer VVC (H.266) technologies into their products, they had to navigate separate licensing negotiations and pay separate royalties to both Access Advance (HEVC Advance) and Via LA due to market fragmentation. This consolidation establishes a single point of contact, which is expected to drastically reduce transaction costs for licensing negotiations.
4. Conclusion: Key Takeaways for IP Practices and Licensing Strategy
This series of events offers crucial lessons for future patent pool management and Standard Essential Patent (SEP) licensing practices.
- Clarity on Exit Restriction Risks: Excessive penalty clauses within pool agreements now face a significantly higher risk of being deemed void (as a matter of public policy or unenforceable penalties) in court.
- Healthy Market Consolidation: A bitter legal dispute ultimately catalyzed an industry restructuring—the consolidation of patent pools—that directly benefits implementers.
As the video codec licensing landscape streamlines under a unified front, the industry will closely monitor Access Advance’s upcoming rate structures and new licensing plans.
References
Primary sources regarding the court rulings and the acquisition detailed in this article can be accessed via the following official websites and court databases:
- Access Advance Official Website: Provides ongoing updates regarding official statements on the acquisition and unified HEVC/VVC pool licensing terms.
- Via LA (formerly Via Licensing / MPEG LA) Official Website: Features announcements regarding the transition of patent pool operations and future support.
- New York State Unified Court System: Allows users to search and view case numbers and detailed text for both the December 2023 summary judgment and the October 2025 appellate ruling in Samsung v. MPEG-LA (Via LA).
This text was translated by a large language model (LLM).