Do you have a reference for that?

I was under the impression that the first 100,000 units are free, and then 20c per unit afterwards to a max of $25m.

H264 drops to 10c per unit after 5m units, to a max of $6.5m.

You need to be shipping 125 million units annually to hit the full $25m.

Yes it's more, but it's not quite ten times. And notably if the chip maker pays the royalties, then the content creators don't need to (though that was excepted indefinitely with H264).

Parts regurgitated from a quick google for reference [1]

[1] http://www.theregister.co.uk/2014/10/03/hevc_patent_terms_th...