OneCodec Ltd.

PROJECT PROPOSAL

SMART Application: Feasibility Study

OneCodec: Simplifying Mobile Video

Technology:
Customers:
Market:

Mobile video capture and playback.

Mobile processor and platform manufacturers.
Worldwide.

Overview

Video performance is key to the success of current and next-generation

mobile devices. Mobile device manufacturers are faced with the problems of
sub-standard video quality and performance, too many incompatible video
formats and high upgrade costs. Our solution is a single, multi-format video
compression codec that delivers optimum performance and can be easily and
rapidly upgraded to handle new formats. Using our technology, customers can
deliver fast, clear video on mobile devices with a short time-to-market for
new products.
OneCodec is a new concept in video processing for mobile devices. A single,
general-purpose video coding engine is automatically and flexibly reconfigured to handle any digital video coding format. The self-upgrading
OneCodec cuts through the complexities of multiple video coding formats,
delivering the best video compression for every application and platform.
Exploiting recent developments in flexible, high-performance processing
technology, OneCodec delivers more efficient video compression, seamless
multi-format support, reduced design times and rapid upgrades. The size and
rapid rate of change of the digital video market is driving manufacturers to
seek efficient coding solutions with lower design and upgrade costs. This
concept meets that need in a unique and innovative way. With a large and
growing market, strong industry interest and a clear route to market, we
believe this is an excellent proposition for funding.
In this Feasibility Study we propose to develop the first ever self-configuring
video compression prototype for mobile devices. Video compression or video
coding is an essential component of the digital media industry, fundamental
to products and services such as internet video, digital television, mobile
video and video conferencing. The increasing number of video compression
formats is a growing and costly problem for manufacturers. Digital media
devices must deal with multiple compression formats including XXXX, XXXX,
XXXX, XXXX and XXXX. Supporting more formats means increased design
times, longer time-to-market, complex and inefficient decoders and
conversions between formats. Our proposal provides an elegant, powerful and
novel solution to this costly problem.
Unique benefits of the proposed technology when compared to existing
offerings:

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1. A single OneCodec engine is required for a particular mobile platform,

rather than a suite of customized video codecs.
2. OneCodec provides faster video performance and lower power
consumption.
3. OneCodec allows re-use of video codec configurations across multiple
mobile platforms.
4. OneCodec enables rapid deployment of new video compression
formats.

Objectives

Aim: to develop and prototype OneCodec, a general-purpose video coding

engine, for a mobile application processor such as the XXXX.
Technical objectives:
1.
2.
3.
4.
5.

Develop, test and optimize ....XXXX

Develop reference .XXXX
Develop converter tool .XXXX
Develop a prototype demonstrate system .XXXX
Optimize the prototype system .XXXX

Commercial objectives:
6. Apply for international patents .XXXX
7. Demonstrate prototype system at .XXXX
8. XXX.. route to market.XXXX

Technological Innovation

3.1 The technical area

The technical area of this proposal is video compression or video coding. This
is the process of reducing the size of a video source and converting it into a
suitable form for transmission or storage, known as encoding, and,
conversely, extracting a video output from a coded video stream, known as
decoding. Video coding is essential to digital video products such as digital TV
(DTV), DVD-Video, internet video, mobile video and surveillance. A number of
mutually-incompatible video coding formats are in widespread use, including:
XXXX
XXXX
XXXX
XXXX
XXXX

3.2 The technical problem

This proposal addresses a growing problem for manufacturers of consumer
video equipment, namely the proliferation of video formats and the difficulty
of supporting them all in a flexible, efficient and cost-effective way. This is a
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costly issue for manufacturers of XXXX, with content increasingly available in

XXXX and XXXX, and XXXX, with the need to support XXXX, XXXX and XXXX.
It is an even bigger problem for manufacturers of XXXX, which must handle
XXXX. XXXX, a leading provider, states: XXXX [i]. For example, a video
player for XXXX of XXXX must support XXXX. Figure 1 shows a typical
scenario:XXXX.
Figure 1 XXXXXXXX

The problem of supporting multiple video formats affects the XXXX, XXXX and
XXXX of XXXX. Manufacturers are faced with several choices:
1. XXXX. Result: expensive XXXX.
2. XXXX. Result: inefficient XXXX.
3. XXXX. Result: restricted XXXX.
None of these choices are appealing. The rapid pace of change and the high
levels of competition in the mobile and internet market means that short
time-to-market and cost-effective design cycles are essential. The drive to
XXXX and to XXXX make it imperative that XXXX are as XXXX efficient as
possible. The explosive growth of video content makes it vital to support all of
the current and emerging video formats.
This expensive technical problem is particularly acute for manufacturers of
XXXX and XXXX, given the XXXX, XXXX and XXXX in this sector. The solution
we propose will improve XXXX and XXXX by XXXX. It will permit fast and
flexible development of XXXX and will permit end-users to XXXX.

3.3 The technical solution

Our proposal provides an elegant, powerful and unique solution to this costly
problem. Figure 2 illustrates the approach. The beauty of this concept is
that XXXX. To handle XXXX, the engine XXXX.
Figure 2 XXXXXXXX

This new approach has the following benefits:

1. XXXX
2. XXXX
3. XXXX
4. XXXX
Any XXXX manufacturer adopting this new approach benefits from XXXX,
XXXX and XXXX and XXXX.

3.4 Relationship to other technology

This proposal builds on research carried out by XXXX in order to solve a
compelling technical problem. The concept of a XXXX specifically designed to
XXXX has not been implemented in a commercial product or system. The
XXXX has proposed related ideas [ii] but has XXXX.

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Increasingly, manufacturers of media-enabled devices are moving away from

dedicated hardware solutions towards flexible, multi-purpose system on chip
(SoC) devices. XXXX. - XXXX, [Error: Reference source not found]. The
OneCodec solution capitalizes on this trend, offering XXXX and XXXX.
Our proposal is a new way of implementing video codecs that is significantly
different to any existing offerings in the world market. The compelling
benefits of our novel technology make it a strong and attractive prospect with
an international market.

3.5 Longer-term opportunities

The proposed work offers significant benefits to device and processor
manufacturers and is therefore an attractive international business
opportunity. In the longer term, the OneCodec framework has the potential
for far-reaching influence on the worldwide digital media market. The
following is a possible route to further international market opportunities:
1. XXXX.
a. Benefits: XXXX.
b. Customers: XXXX.
c. Scope: XXXX.
2. XXXX.
a. Benefits: XXXX.
b. Customers: XXXX.
c. Scope: XXXX.
3. XXXX.
a. Benefits: XXXX.
b. Customers: XXXX.
c. Scope: XXXX.

Technical Challenges

Objective 1: Develop, test and optimize XXXX for XXXX, the

OneCodec video coding engine.
The OneCodec engine is critical to the success of the project. It must be
capable of XXXX, whilst XXXX. Techniques used to achieve this will include
XXXX; XXXX; and XXXX. The task of optimizing performance will be simplified
by the fact that XXXX. Our extensive experience of advanced optimization
and video codec software development makes us ideally suited to achieving
this task.
Objective 2: Develop XXXX.
The availability of XXXX, together with our many man-years of video codec
software development experience, makes this task relatively straightforward.
To aid in the XXXX, XXXX will be used and XXXX will be inserted to aid
efficient XXXX.
Objective 3: Develop XXXX.
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The challenge here is to XXXX. Careful XXXX will make this a relatively
straightforward task.
Objective 4: Demonstrate system: XXXX
This task requires XXXX. The team has a track record of successfully XXXX.
Objective 5: Optimize system XXXX.
The main technical challenges are discussed under XXXX.
Likelihood of successful outcome:
The likelihood of achieving objectives 1-4 is very high. The technical
challenges are clear and we have considerable experience in solving these
and related challenges in software and hardware design. Successful
completion of objective 5 relies on XXXX.

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Project Timetable

Please see Section 9.

Rights to Intellectual Property

The proposed project does not rely on any proprietary technology.

Implementations of XXXX Licenses to use the relevant development tools and
implementation platform will be obtained XXXX.
Given the highly innovative nature of this project, it is expected that
patentable IP will be generated. OneCodec will apply for international patents
to protect such IP and to add value to any license deals.

Marketing and Commercial Exploitation

7.1 Likely demand and market size

Video capabilities are increasingly built in to mobile handsets. The mobile
processor market is forecast to grow from 350 million units in 2009 to 750
million units in 2013 [reference included here]. Much of the usage at present
is for video capture, storage and playback on the handset but mobile video
services over networks are set to increase. Over 160 million mobile devices
providing networked video services will be sold from 2008-2013 [reference
included here] and video traffic to mobile devices is expected to double each
year until 2012 [reference included here]. Shipments of XXXX are set to reach
2 billion units by 2013, with much of the growth driven by XXXX [reference
included here].
The mobile processor market is dominated by key players such as XXXX,
XXXX, XXXX and XXXX. These large players offer integrated circuits or
Intellectual Property (IP) suites which typically integrate a number of
processors or cores into a System on Chip for mobile processing. Many
niche players exist, typically those smaller companies which offer individual
processor cores optimized for a particular task, e.g. multimedia processing,
network interface, etc. Multimedia processing functionality is seen as a vital
differentiating factor that can determine the success or failure of a mobile
processor offering. For this reason, key players such as XXXX, XXXX and
XXXX are investing heavily into improving support for computationally
intensive multimedia processing [reference included here] and the smaller,
niche players seek technologies that give them a market advantage.
The customer base for the proposed OneCodec offering consists of the
companies operating in the mobile processor market. The OneCodec concept
is likely to be attractive to both larger and smaller players, as a highly
effective approach to video processing that gives a number of unique
benefits. It has an international market.

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7.2 Entry to market

Market entry will be via one or more license deals and/or joint ventures with
the customer base. Successful market entry will depend on three main
factors:
1. The unique benefits of the OneCodec technology, which XXXX,
both being critical to the target market. See Section 3.
2. The strength of the technical team. As internationally leading
researchers and developers of video coding technology, the team
members have XXXX of experience in developing world-leading
XXXX. See Section 9.
3. The teams high visibility and extensive list of contacts in the target
market XXXX
The combination of clear and persuasive technical benefits, world-leading
technical expertise and direct contact with decision makers in leading
companies provides an excellent route into the target market.

7.3 Worldwide competition

Larger players in the target market already have video coding solutions for
their mobile processor platforms. These are typically provided by third-party
developers of video codecs. Companies such as XXXX, XXXX, XXXX and XXXX
offer standards-compliant codecs in the form of software or hardware. This is
a well-established market with many versions of the most popular video
codecs on offer. Competition is particularly strong for (a) legacy platforms
such as XXXX and (b) popular standard codecs such as XXXX, XXXX and
XXXX. Because most consumer applications require a standardized coding
format, there is limited scope XXXX and hence for XXXX between codec
implementations.
Rather than competing directly with these established and narrowlydifferentiated players, our proposal offers a new paradigm for implementing a
video codec with key technical benefits. This may well be attractive to
established codec vendors who have established customer bases but are
seeking to differentiate their products, making the competitors potential
licensees or joint venture partners.

7.4 Benefits to Scotland

1. Feasibility study and subsequent product development and licensing:
XXXX. Timescale: XXXX.
2. Further technology development and products: XXXX. Timescale: XXXX.
3. Joint developments with other Scottish companies: XXXX. Timescale:
XXXX.

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4. Influence on next generation of multimedia coding standards: XXXX. This

will lead to XXXX. Timescale: XXXX.

7.5 Future events that could affect

competitiveness
The OneCodec concept exploits a number of important trends in the
semiconductor and consumer electronic industries, including XXXX, XXXX,
XXXX and continual improvements in processing capacity and flexibility. All of
these trends serve to highlight the benefits of the technology.
The XXXX has recently announced a timetable for standardizing the next
major video coding format, with a new standard due to be completed by
2012/13 [iii]. As rapid and efficient implementation of new coding
technologies is a key benefit of the OneCodec concept, this makes our
offering even more competitive. Manufacturers will be under pressure to
support the new format alongside existing formats as efficiently and costeffectively as possible and OneCodec is an ideal platform to achieve this.

7.6 Displacement of UK and overseas

technologies
The OneCodec technology displaces existing models for implementing video
codecs. The major vendors of commercial codecs tend to be based in the US
and the Far East. As the OneCodec proposal is a platform technology, i.e. a
new method of implementing video codecs, the established codec vendors are
potential partners or customers as well as competitors.

7.7 Supporting evidence for market

analysis
Please see References at end of proposal which verify how we have assessed
likely demand, market size and competition. Letters of support from XXXX
and XXXX are included.

Wider Impact

Successful development and commercial exploitation of the OneCodec

concept could lead to this new approach being adopted widely in video
communication applications. The impact of this would include:
- Better video communications performance for a wide range of
consumer and business applications including mobile video, broadcast
video, video archiving and surveillance. This in turn would benefit users
of these applications.
- The potential for a Scottish company to influence the worldwide
development of video applications, for example by building the
OneCodec concept into the next generation of video compression

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standards.

Business background and project management

9.1 The business

OneCodec Limited is registered in Scotland and was formed in XXXX to XXXX.
XXXX

9.2 Personnel

(2 pages of information about key project personnel was included here with
details of previous experience for each individual and their role in the
project.)
XXXX

9.3 Project management

A Gantt chart (see below) shows the major tasks, their inter-relationships,
and scheduled time allotments. Tasks are labelled with the initials of the
Directors with primary involvement in the design and development of each
stage. The first listed Director for each task will be the lead on the task.
XXXX
(Comprehensive project Ghannt Chart was inserted here)
XXXX

10 Need for SMART support

SMART support is essential to achieve the desired technical milestones in the
proposed timescale. Timeliness is essential given the pace of progress in the
target market. Without SMART support, the team would be required to
allocate more of their available time to generating early income. This would
reduce the manpower resources available to develop the OneCodec
prototype.
Without SMART support, the project plan would change in one or both of the
following ways:
a. XXXX
b. XXXX
The balance of funding for the project will be provided XXXX. The company
has been set up with the express purpose of XXXX.

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11 Project Costs
A comprehensive and detailed table of project costs was included here.

11.1 Cost justification

The first year expenditure totals XXXX of which XXXX is requested from
SMART. The remaining XXXX will be provided by XXXX.
A detailed breakdown (1.5 pages) of project costs was provided here:

Personnel: XXXX
Overheads: XXXX
Materials: XXXX
Consultancy charges: XXXX
Subcontract charges: XXXX
Fees for trials and testing: XXXX
Preparation of technical manuals: XXXX
IP costs: XXXX
Market Assessment: XXXX
Travel: XXXX
Capital Equipment: XXXX

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