Not $20 but $0.20. (after the first free 100,000 and until it drops to $0.10 after 5 million) although you may have to sign a license with MPEG-LA to take advantage of the free 100,000 and potentially submit to audits so there are risks/costs.
I don't know how direct the distribution from Cisco to the end user has to be to be legal although I can imagine a range of possibilities for this I don't know if they would be practical in your situation. I imagine that you could ship a tool that creates an install package to be used on the non-connected devices and downloads the binary from Cisco and adds it to your install bundle but that is still an annoying extra step.
Practically I don't see anyone coming after you (and certainly not getting real damages) if you did include Cisco's binary with your product - it would be hard to see the real harm or damage caused.
I don't know how direct the distribution from Cisco to the end user has to be to be legal although I can imagine a range of possibilities for this I don't know if they would be practical in your situation. I imagine that you could ship a tool that creates an install package to be used on the non-connected devices and downloads the binary from Cisco and adds it to your install bundle but that is still an annoying extra step.
Practically I don't see anyone coming after you (and certainly not getting real damages) if you did include Cisco's binary with your product - it would be hard to see the real harm or damage caused.