The Price of 'Free': AV1/AV2's Hidden Costs and the Rise of Patent Pools

BOSTON, MA – August 26, 2026

The digital world runs on video, and for years, the industry has chased a holy grail: a high-quality, efficient video compression standard, or codec, that is free for everyone to use. The Alliance for Open Media (AOM), a consortium including giants like Google, Meta, and Netflix, seemed to deliver just that with its AV1 codec. But a persistent and costly misconception is now coming into sharp focus, revealing that “royalty-free” is not always free from risk. In a move set to reshape the landscape, independent licensing administrator Access Advance has announced it is exploring a new patent pool for AV1 and its successor, AV2, aiming to bring clarity to a notoriously murky legal territory.

The 'Royalty-Free' Illusion

The core promise of AOM was to create an open-source, royalty-free alternative to the heavily patented and expensive codecs that preceded it, such as HEVC (H.265). AOM’s patent policy grants a no-charge, irrevocable license to any patents its members hold that are essential to implementing the AV1 standard. This was a game-changer, fueling rapid adoption across smart TVs, web browsers, and streaming platforms that were eager to reduce licensing overhead.

However, the policy’s protection extends only as far as AOM's membership roster. The complex technology behind modern video compression often builds upon decades of research and development, and many companies holding essential patents are not members of the Alliance. These outside entities never agreed to AOM’s royalty-free terms, leaving a significant legal minefield for any company implementing AV1 or the newly released AV2. Implementers, from device manufacturers to software developers, face potential infringement exposure from these non-AOM patent holders.

This is not a theoretical threat. The issue crystallized earlier this year when Dolby Laboratories, a key licensor in other video patent pools, filed lawsuits against Snap Inc. in the U.S. and Brazil, alleging infringement of patents related to the AV1 codec. The legal action served as a stark reminder that AOM does not, and cannot, grant a license to patents it does not own. Other patent holders have also asserted their intellectual property rights, and competing patent pools, such as one established by Sisvel in 2019, have long argued that a truly comprehensive license requires dealing with patent owners beyond the AOM consortium.

“The ‘royalty-free’ branding was brilliant marketing, but it created a blind spot for many in the industry,” noted one intellectual property attorney specializing in video technology. “Companies that invested heavily in AV1 integration under the assumption of zero patent liability are now having to re-evaluate their risk exposure.”

A Centralized Solution for a Fragmented Landscape

This is the complex environment Access Advance is stepping into. The company has launched an “exploratory phase” to form a patent pool that would gather essential AV1 and AV2 patents from non-AOM members and offer them to implementers under a single, transparent license. The goal is to create a one-stop shop for companies seeking legal certainty.

“As adoption of AV1 accelerates, with AV2 adoption expected in the near future, device and software makers need a clear, centralized way to license patents held outside AOM's royalty-free commitments,” said Peter Moller, CEO of Access Advance, in the company’s announcement. By inviting all entities who believe they hold essential patents to participate in pool formation discussions, Access Advance aims to build a comprehensive and efficient solution.

A patent pool simplifies a chaotic process. Instead of forcing a device maker to individually negotiate licenses with dozens of different patent holders—a costly and time-consuming endeavor—a pool administrator like Access Advance handles the aggregation, determines fair royalty rates, and distributes payments back to the licensors. For implementers, it offers predictability and a shield against infringement lawsuits. For patent owners, it provides a straightforward way to monetize their innovations without resorting to expensive litigation.

The Expanding Empire of Patent Pools

This move also solidifies Access Advance’s position as a central power broker in the world of video technology licensing. The company is no stranger to managing complex patent ecosystems, already administering massive pools for the HEVC and VVC codecs, which together comprise tens of thousands of essential patents. Its Multi-Codec Bridging Agreement and Video Distribution Patent (VDP) Pool already offer streamlined licensing for services that use multiple codecs, including VP9, AV1, HEVC, and VVC.

The proposed AV1/AV2 device and software pool is a logical extension of this strategy. By bringing the supposedly “open” codecs into its fold, Access Advance is effectively positioning itself as the indispensable clearinghouse for nearly all major video compression technologies. The company has also stated it anticipates adding AV2 coverage to its existing VDP Pool for streaming services in 2027, further consolidating its offerings.

This growing centralization has significant implications. On one hand, it provides much-needed efficiency and predictability in a market historically plagued by patent wars. On the other, it concentrates immense power in the hands of a single administrative body, which will set the terms and prices that could shape the future of video innovation and adoption. The structure and royalty rates of the eventual AV1/AV2 pool will be scrutinized heavily by an industry that has grown accustomed to the promise, if not the complete reality, of a royalty-free future.

Navigating the Path Forward

For the companies at the heart of innovation—the device manufacturers, streaming services, and software developers—the path forward requires a careful balancing act. The emergence of a formal licensing structure for AV1 and AV2 patents introduces new costs, challenging the economic models built around a free-to-use codec. However, ignoring the legal risks is no longer a viable option, as recent litigation demonstrates.

Participating in a pool like the one proposed by Access Advance represents a trade-off: accepting predictable licensing fees in exchange for legal peace of mind and the freedom to innovate without the constant threat of an infringement lawsuit. The alternative is to navigate the patent minefield alone, a high-risk strategy that could lead to costly legal battles and injunctions that disrupt business.

The industry is at a crossroads where the ideals of open-source collaboration are meeting the realities of intellectual property law. Access Advance’s initiative is not just a business proposal; it is a direct response to a fundamental tension in modern technology development. As AV1 and its successor AV2 become further embedded in our digital infrastructure, the framework for licensing them will be a critical factor in determining how we create, distribute, and consume video content in the years to come.