What’s the source of the “one license per hardware device” policy?

Based on my reading of the AVC license packet text, it’s quite the opposite: each AVC encoder/decoder (or codec) is considered one “unit”, whether a single product contains one or more units, the license fee is calculated by “unit”, not by device.

From the license packet:

“AVC Codec(s) — shall mean any single product or thing which incorporates the
full functionality of both one AVC Decoder and one AVC Encoder. Any single
product or thing which incorporates more than one AVC Decoder and/or more
than one AVC Encoder shall constitute more than one AVC Codec.”

“Subject to the limitation of Article 3.1.9, the royalty
in any Calendar Year for the sublicense granted pursuant to Section 2.1
hereof upon the Sale after December 31, 2004 of each AVC Encoder,
each AVC Decoder or each AVC Codec (each AVC Encoder, AVC Decoder or AVC Codec shall be referred to in this Article as a “Unit”)
whether one or more Units are incorporated in a single product shall be
as follows:…”