When is a Patent license for Azure Media Services/HEVC needed

Question

Hi,
In the Microsoft Online Service Terms the following statement can be found:

Notice about Azure Media Services H.265/HEVC Encoding
Customer must obtain its own patent license(s) from any third party H.265/HEVC patent pools or rights holders before using Azure Media Services to encode or decode H.265/HEVC media

Azure Media Services is used behind the scenes for multiple Microsoft 365 services as I understand it. Services lite Microsoft Teams, Microsoft Teams Live Events, Stream etc. These services are paid services that I think use Azure Media Services in the back end. Does the services include the necessary patent licenses?
The two scenarios I’m envisioning is:

1. If an organization builds something on top of Azure Media Services, they will need to obtain a HEVC Patent License. If an organization use Microsoft 365 services the Patent License is handled by the service in question and the organization does not need to obtain a HEVC Patent License.
2. Regardless of how you use Azure Media Services, you must obtain a HEVC Patent License.

I hope Scenario 1, or close to it, is the correct one.
If you do need to obtain a HEVC Patent License, how many licenses will you need to get. Enough to cover the organizations users in Azure AD, or enough for the projected participants in Microsoft Teams Meetings or Live Events etc?

I have tried to be as clear as I can, but if there is anything I can clarify, I'll happily do so.

Answer 1

I've also spoken with Microsoft Support, and with a Patent representative from MPEG LA. They were in agreement that a Patent License was not required for this usecase.

The correct scenario is #1.