Anger greets MPEG-4 licensing scheme

Anger greets MPEG-4 licensing scheme
By Junko Yoshida, EE Times
January 31, 2002 (2:28 p.m. EST)
URL: http://www.eetimes.com/story/OEG20020131S0061

SAN MATEO, Calif. — MPEG LA, an independent agency designed to provide one-stop technology standards licensing, will disclose the terms and conditions of its licensing structure for MPEG-4 video on Thursday (Jan. 31), EE Times has learned. Some service providers and content owners of are reportedly unhappy with the new licensing structure.

MPEG LA facilitated talks among licensors — representatives of the essential patent owners — to determine the details of its licensing plan.

The licensing fee per MPEG-4 client video decoder, whether implemented in software or hardware, is expected to be much cheaper than the fee for MPEG-2 video, but some licensors are reportedly unhappy with a specific feature of the license related to a so-called "use fee." The "use fee" is not a part of the license for MPEG-2 video.

Under the new scheme, a "use fee" will be charged to service providers based on the time or duration of MPEG-4 vi deo stream playback, industry sources said. Some licensors are concerned about the terms and price of that model, the sources said.

Rob Koenen, president of MPEG-4 Industry Forum, said he was not yet informed of the MPEG-4 licensing structure, but is "really glad that finally things are clear for MPEG-4 video licensing." He is looking forward to "an open debate in the industry" to see if the new licensing structure is the right model for MPEG-4, he said.

Representatives of the Internet Streaming Media Alliance, one of the initial users of MPEG-4-based video streaming technology, declined to comment, noting that they are not yet familiar with the MPEG-4 video licensing terms.