IPR policy of the standard bodies greatly influences the IP cost of the developed standards. ITU-T and ISO/IEC’s IPR policy is so unassertive that the development of necessary patent licensing programs falls to the industry, such as MPEG LA. ITU-T and ISO/IEC also take the risk that the standard may be rejected by the market because of the harsh licensing terms developed by MPEG LA.

It is worth introducing the IPR policy of AVS, the audio and video coding standard of China. AVS IPR policy is designed to consider the licensing in parallel with the technical work, when deciding which contributions to adopt into the standard, the standard committee does not consider only efficiency and complexity, but also considers the IPR implications. To avoid high IP cost, some compromises are required, but the benefits of a non-proprietary open standard and the licensing cost savings easily outweigh the small loss in performance. The IP cost for each AVS equippment is only one CNY.