China Leads the Charge: ByteDance and Tencent Emerge as Frontrunners in Next-Gen Video Coding (H.267)

Source:IPRdaily

As the digital world increasingly demands higher quality and more efficient video, the race to define the next global video compression standard, beyond H.266/VVC (known as "Beyond VVC" or H.267), is intensifying. Chinese companies, particularly ByteDance and Tencent, are emerging as key innovators, signaling a strategic shift in the global video technology landscape. GreyB’s report on this topic provides detailed analysis of the patent and contribution landscape for those interested in early insights. 

The upcoming H.267 standard is crucial for powering future technologies like the metaverse, 8K streaming, and advanced autonomous systems. With Version 1 finalization targeted for late 2028, the foundational work happening now in the Joint Video Experts Team (JVET) will determine the key players in this new visual economy. 

Chinese Dominance in Foundational IP 

Analysis of 3,916 patent families and 1,357 JVET contributions related to Enhanced Compression Model (ECM) and AI-driven Neural Network Video Coding (NNVC) techniques shows a strong Chinese presence. 

● Over half of all relevant patents (53.8%) originate from China-headquartered companies. This demonstrates China's formidable investment and strategic focus on becoming a global leader in video technology innovation. 

● ByteDance, the company behind TikTok and Douyin, stands out as the top patent holder with 600+ patent families. Its robust patenting activity is clearly driven by the immense operational needs of its global content platforms. ByteDance is also the leader in JVET contributions with 250+ submissions.

● Tencent, operator of WeChat/Weixin and numerous gaming and streaming services, is a close second with 450+ patent families. Tencent's strategy appears to be a dual one, securing a strong IP position in the JVET ecosystem while also being a founding member of the rival Alliance for Open Media (AOMedia). This unique position ensures Tencent remains a major power player, regardless of which standard prevails. 

● Other significant Chinese contributors include Kuaishou Technology (owner of the popular short-form video app), Huawei, Oppo, Alibaba, and Xiaomi each holding a substantial number of patent families and / or making valuable JVET contributions. 

Beyond corporate giants, Chinese academic institutions are also playing a vital role. For instance, Xidian University has emerged as a major JVET contributor and a strategic R&D hub. Its partnerships, like the one with Xiaomi, are effectively channeling academic breakthroughs into commercial IP.

For a deeper dive into these developments and to better understand how Chinese entities are shaping the future of video coding, you can check GreyB's Beyond VVC report. It offers an in-depth analysis of the initial patent families, JVET contributions, and the strategic landscape of VVC. 

Dual-Track Innovation: ECM and AI-Driven NNVC 

The development of H.267 follows two parallel tracks within JVET: 

1. Enhanced Compression Model (ECM): This evolutionary path refines traditional block-based hybrid coding. ECM currently receives the majority of R&D investment, with over 3,000+ patent families and 1,000+ JVET contributions. Chinese companies like ByteDance, Tencent, and Oppo are leading in core ECM domains such as Intra Prediction, Inter Prediction, and In-Loop Filtering. 

2. Neural Network Video Coding (NNVC): This revolutionary track explores AI-based approaches to redefine video compression. While still nascent, NNVC represents a high-risk, high-reward bet on the future. Here, Tencent takes the lead in NNVC patent families, closely followed by ByteDance. This indicates Chinese firms are not only optimizing existing technologies but also investing heavily in the cutting-edge of AI-driven compression.

Navigating the Competitive Landscape and Licensing Future 

While Chinese companies lead, the global landscape also includes major players like Qualcomm, InterDigital, LG Electronics, and Nokia, who are actively contributing to JVET. However, the notable absence of most AOMedia members (except Tencent and Google) from JVET underscores a potential for market fragmentation, as the royalty-free AV1 codec continues to gain traction. 

For Chinese companies, there is a critical need for a "China-centric IP strategy." This involves: 

● Prioritizing monitoring, litigation, and licensing strategies with a primary focus on key Chinese players dominating patent filings and JVET contributions. 

● Investigating "Shadow" and Future IP, particularly in AI-driven codec architectures, to anticipate future licensing demands. 

● Recognizing the direct challenge and opportunity for semiconductor manufacturers to design hardware that accelerates AI workloads for video compression. 

The future of video coding is not a single destination but a dual path of traditional refinement and AI-driven revolution. With significant patent ownership and active engagement in JVET, Chinese companies are strategically positioned to shape and lead this exciting next chapter in digital media. 

Deeper Insights into VVC H.267 and the Competitive Landscape 

This article provides a snapshot of the emerging H.267 standard and the early patent trends shaping next-generation video coding. For readers seeking a more detailed understanding of the evolving IP landscape, GreyB’s full report, Beyond VVC – H.267, analyzes 3,916 patent families and 1,357 JVET contributions, highlighting the key Chinese organizations actively influencing ECM and AI-driven NNVC technologies. 

The report includes: 

● Analysis of major contributors and their roles in both ECM and NNVC development. 

● Identification of technology pathways and innovation trends shaping future video compression. 

● Insights into potential licensing and strategic IP considerations within this rapidly evolving space. 

The findings are particularly relevant for IP professionals, R&D leaders, and strategists aiming to track global innovation and understand Asia’s increasing role in video technology development.

Read the full GreyB report here.

Source:IPRdaily