OPPO acquires 20 video coding standard patents to lay out streaming media technology

According to foreign media reports, OPPO recently acquired 20 standard essential patents (SEPs) from the Korean research institute XRIS. The query results of the World Intellectual Property Organization (WIPO) and the Korea Industrial Property Information Service Center (KIPRIS) database show that these patents are related to video encoding and decoding, most of which were applied for in September 2019, and the applicant registration information has now been changed.

Video coding is one of the basic technologies of streaming media. The combination of video coding technology and network communication technology directly determines the convenience and experience of users watching videos. This is not the first time that OPPO has shown interest in video coding standards. In October last year, OPPO appeared as a formal member of the Global Media Coding Industry Forum (MC-IF) and revealed that it is continuing to lay out H.266/VVC video coding standard patents for the 5G era.

From its strong leadership in fast charging technology to the continuous enhancement of 5G patents, and then to the active layout of video coding standard patents, it is clear that OPPO is accelerating its pace of consolidating its existing "territory" and drawing up its future business map with patent layout as the guide.

The history of video coding

To understand OPPO's patent layout in the field of video coding, we must start with video coding technology and standards. As we all know, the original video data stream is very large. It is estimated that an unencoded video with a resolution of 1920×1280 and a frame rate of 30 has a video size of 186.6MB per second, and about 11GB per minute. In other words, a 90-minute movie will take up 1,000GB of storage space. Such a huge data stream is an extremely heavy burden for data storage and transmission, so video coding came into being. The so-called video coding, in simple terms, is to compress the video into a certain format, remove the spatial redundancy and temporal redundancy, and form a code stream that is more suitable for storage and transmission.

It has been more than 20 years since the Video Coding Experts Group (VCEG) of the International Telecommunication Union (ITU) adopted the H.261 video coding standard, and the video coding standard has also evolved from H.261 to H.265/HEVC. Each new coding standard represents a new coding technology, and each upgrade of coding technology means that users can watch higher-definition videos with less traffic, lower bandwidth, and faster speeds. The next-generation video coding standard H.266/VVC after H.265/HEVC is expected to be completed by the end of this year.

With the advent of the 5G era, the streaming media industry has ushered in new development opportunities. The maturity of VR and 8K ultra-high-definition video technology also puts higher requirements on video coding technology. Therefore, the upgrade of video coding technology and the standardization of the next-generation coding have become more important.

According to foreign media reports, the video codec patents acquired by OPPO this time are H.266/VVC related patents. In fact, since October 2018, OPPO has begun to participate in the H.266/VVC standardization work. By jointly promoting related technologies with university partners and applying for standard patents, OPPO is promoting the standardization of H.266/VVC while also enhancing its influence in the streaming media field and improving its own software basic technology "moat".

Advantages and Disadvantages of Patent Acquisition

Patent acquisition is an effective way to increase patent reserves in a short period of time. By acquiring patent assets, companies can avoid patent disputes in advance, expand market share, or obtain new cooperation opportunities. Previously, OPPO had acquired patents from companies such as Ericsson, Sharp, Dolby, Inventergy, and Intelligent Ventures. According to foreign media reports, OPPO sources believe: "This (patent acquisition) enables us to obtain patents to strengthen our portfolio, increase leverage in cross-licensing negotiations, and even join patent pools."

Slightly different from previous acquisitions, the counterparty of the 20 patents acquired by OPPO this time is not an international giant in a certain field, but a small company - XRIS. According to Jiwei.com, XRIS was founded in September 2018 and is a research-based startup founded and operated by Korean standards expert Lee Bae Keun. Lee Bae Keun has been engaged in video encoding and decoding for a long time and has worked in institutions or companies such as Korea Telecom and LG. In addition to OPPO, which reached a deal this time, intelligent Discovery has also purchased patent assets from XRIS.

The results of the WIPO and KIPRIS official website inquiries show that most of the 20 patents acquired by OPPO were applied for around September 2019, and it has been more than half a year. Early acquisitions allow OPPO to maximize its revenue potential during the validity period of the patents. Of course, early acquisitions are bound to be accompanied by risks. The standardization process of H.266/VVC and the status of related patent applications are both potential risks. OPPO's move also shows its determination and confidence in forward-looking investment in H.266/VVC video coding.

Patent strategy interpretation

近年来，OPPO专利布局成绩显著。日本领先的全方位知识产权服务商日本技术贸易株式会社（NGB Corporation）最新发布的全球5G标准专利族声明概况分析报告显示，截至5月17日，OPPO全球5G标准专利族声明量已达到980族，跻身全球前十大5G标准专利族声明者之列。

In addition to 5G, fast charging is OPPO's traditional technological advantage. With patent breakthroughs in video decoding, imaging, AI and other fields, OPPO's patent strategy is becoming clearer. Feng Ying, OPPO's senior director of intellectual property, said in a previous interview: "We will continue to accelerate and focus on the patent layout in important overseas countries. We have now formed a layout pattern in important fields such as 5G standard patents, charging technology, imaging, AI, IoT, etc., and will continue to make breakthroughs in key areas such as chips, display technology, antennas, etc."

Looking at the patent fields that OPPO focuses on, they are mainly centered around hardware foundation, software foundation, Internet of Everything and chip technology. Obviously, OPPO's patent strategy is highly coordinated with its market strategy. On the one hand, it consolidates the foundation, builds core underlying software and hardware technologies, and strives for a favorable position in patent cross-licensing. At the same time, it plans for the future, focuses on cutting-edge fields, clears obstacles to future product layout and establishes competitive advantages.