Question · Q4 2025
Steven Frenkel pressed for clarity on the new video distribution patent pool model, asking if it involves selling new capabilities to streamers or enforcing patents on technologies they are already using. He also inquired about the progress of Dolby Atmos music and Dolby Vision in automobiles, specifically its growth trajectory, potential for a separate reporting segment in FY2026, and penetration into lower price points and North American brands. Additionally, he asked about true-ups for the quarter.
Answer
CEO Kevin Yeaman clarified that the patent pool initially involves the same patents previously established for device licensees, with the industry now recognizing their essential nature for content streamers. He stated that the pool's approach is a combination of bringing licensees on board and providing value through certainty of operation against a growing number of patents, with enforcement as a last resort. Yeaman indicated that automotive is still in early days but is one of the fastest-growing areas, and while he doesn't anticipate a separate segment in FY2026, it will become one eventually. He noted progress in deepening penetration into existing brands' lineups (e.g., Cadillac's EV lineup) and a strong pipeline for broader adoption. CFO Robert Park stated that true-ups for the quarter were a minor factor, at minus $1 million.
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