Context:
- Implementers of video standards must catch up on licensing. For example, just yesterday Avanci Video announced a first license agreement with a major streamer (February 5, 2026 ip fray article).
- Amazon entered into a license agreement with Adeia (December 3, 2024 ip fray article) and settled a dispute with Nokia (March 31, 2025 ip fray article).
- It brought a pre-emptive FRAND (fair, reasonable and non-discriminatory licensing) action against research and licensing firm InterDigital in the UK, which has led to interjurisdictional friction, which in turn has the European Commission concerned (February 3, 2026 ip fray article). The latest development on that front is Amazon’s second Unified Patent Court (UPC) appeal (February 5, 2026 ip fray article).
- So far, Amazon’s implementation of video techniques has mostly received attention in connection with its Amazon Prime streaming service and certain related hardware products. But Amazon’s most profitable business unit is Amazon Web Services (AWS), the world’s leading cloud hyperscaler. Many websites and online services that implement streaming run on AWS infrastructure. Famous examples are Netflix, Disney+, and Paramount+. Those using AWS can implement all video streaming themselves, but Amazon offers such services as AWS Elemental MediaLive that support a laundry list of video standards, including (but not limited to) AV1, AVC/H.264, HEVC/H.265, MPEG-2, AAC, Dolby Digital, Dolby E, Dolby Digital Plus, MPEG Audio, and PCM.
What’s new: This week, Amazon contacted many of its customers (you can find the original email and other information below), criticizing royalty demands by video patent holders unreasonable and disclaiming, from here on out, any defense or payment obligations vis-à-vis AWS customers with respect to video streaming services. In the alternative, Amazon says it would have to raise prices. Let’s compare what Amazon is doing here to the policies of its major competitors (Microsoft Azure, Google Cloud Platform, Alibaba Cloud), and what it means in litigation.
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Notes:
- On ip fray‘s sibiling site ai fray, we have repeatedly discussed cloud competition topics because cloud services are a key input for AI purposes. Therefore, we are rather familiar with the cloud market landscape. On its About page, ai fray once disclosed support from Microsoft only in connection with AI regulatory matters. ip fray covers Microsoft patent topics irrespectively of any AI-specific considerations.
- We wish to thank our reader Erica Ghironi, an Italian patent attorney and analyst, for bringing this development to our attention. We do not do such “hat tips” unless someone communicated with us in public or asks to be credited.