formally announced on March 26, 2015, as HEVC Advance. The terms, covering 500 essential patents, were announced on July 22, 2015, with rates that depend on the country of sale, type of device, HEVC profile, HEVC extensions, and HEVC optional features. Unlike the MPEG LA terms, HEVC Advance reintroduced license fees on content encoded with HEVC, through a revenue sharing fee. The initial HEVC Advance license had a maximum royalty rate of US$2.60 per device for Region 1 countries and a content royalty rate of 0.5% of the revenue generated from HEVC video services. Region 1 countries in the HEVC Advance license include the United States, Canada, European Union, Japan, South Korea, Australia, New Zealand, and others. Region 2 countries are countries not listed in the Region 1 country list. The HEVC Advance license had a maximum royalty rate of US$1.30 per device for Region 2 countries. Unlike MPEG LA, there was no annual cap. On top of this, HEVC Advance also charged a royalty rate of 0.5% of the revenue generated from video services encoding content in HEVC. When they were announced, there was considerable backlash from industry observers about the "unreasonable and greedy" fees on devices, which were about seven times that of the MPEG LA's fees. Added together, a device would require licenses costing $2.80, twenty-eight times as expensive as AVC, as well as license fees on the content. This led to calls for "content owners [to] band together and agree not to license from HEVC Advance". Others argued the rates might cause companies to switch to competing standards such as Daala and VP9. On December 18, 2015, HEVC Advance announced changes in the royalty rates. The changes include a reduction in the maximum royalty rate for Region 1 countries to US$2.03 per device, the creation of annual royalty caps, and a waiving of royalties on content that is free to end users. The annual royalty caps for a company is US$40 million for devices, US$5 million for content, and US$2 million for optional features. On February 3, 2016, Technicolor SA announced that they had withdrawn from the HEVC Advance patent pool and would be directly licensing their HEVC patents. HEVC Advance previously listed 12 patents from Technicolor. Technicolor announced that they had rejoined on October 22, 2019. On November 22, 2016, HEVC Advance announced a major initiative, revising their policy to allow software implementations of HEVC