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Sigma Designs Accused of Copyright Infringement

Cygnus v1 writes "The XVID team has ceased development of the XVID video codec for the time being because they say that Sigma Designs' REALmagic MPEG-4 Video Codec software includes their code and has claimed it as Sigma Designs' own work. The current XVID homepage includes some binary-level comparisons." Update: 08/23 03:14 GMT by T : Apparently the folks at Sigma have seen that no good is likely to come from this; an anonymous reader submits a link to this release on Yahoo! which says "complete source code will be available for download starting August 23, free of charge, through Sigma's website."

27 of 417 comments (clear)

  1. press release text by Anonymous Coward · · Score: 5, Informative

    XVID TEAM REQUESTS SIGMA DESIGNS' TO HALT COPYRIGHT INFRINGEMENT

    ERLANGEN, GERMANY -- August 22nd, 2002 -- The XVID development team, author of the popular XVID MPEG-4 video codec, claims that Sigma Designs' REALmagic MPEG-4 Video Codec is an illegal copy of the XVID software and publicly requests the company to stop violating their software license and copyrights.

    XVID is a leading open source MPEG-4 video research project: software distributed by XVID is covered by a Free Software license, the GNU General Public License (GNU GPL). The XVID team announced that Sigma Designs' REALmagic MPEG-4 Video Codec includes wide portions of XVIDcodec software. By not offering a corresponding source code distribution and by claiming sole authorship on the product, Sigma Designs' Inc. is violating the GNU General Public License and the copyrights of the XVID authors.

    XVID learned about the license violation in early July, soon after the initial release of the REALmagic software (version 1.0). Sigma Designs' were immediately contacted, and replied confirming the violation and promising to replace all violating code.

    Version 1.1 of the REALmagic software was released on the 9th of August. After examining the new version, XVID developers concluded that the violating code was not replaced, but disguised by programming and compiling tricks. Sigma Designs' were again contacted and asked to remove the REALmagic download link from their website. Thus far, they have not shown any sign of cooperation.

    In a statement to the XVID development team, project founder Michael Militzer showed his disappointment regarding Sigma Designs' behaviour: "We have been quite reasonable and have given Sigma Designs' ample opportunity to resolve this issue. Apparently none of our demands have been taken seriously. Nearly two months after the initial release of the REALmagic MPEG-4 Video Codec, Sigma Designs' is still knowingly infringing the GNU General Public License."

    Militzer believes this infringement might be of high general interest: "This is an unfortunate event, not only for us but for the whole Free Software movement. Therefore we hope to receive wide support from the Free Software community in our efforts to convince Sigma Designs' to respect the terms of the GPL."

    Evidence supporting the claim has been published on the XVID website.

    http://www.xvid.org/v1_0_comparison.pdf
    http:// www.xvid.org/v1_1_comparison.pdf

    About XVID (http://www.xvid.org/)
    XVID is a leading open source MPEG-4 video research project, founded by the German student Michael Militzer in August 2001 to continue the efforts of DivXNetworks' former OpenDivX project. Today, the XVID project consists of users and developers from all over the world. XVID publishes all its software under the GNU General Public License (GNU GPL).

    About Sigma Designs Inc. (http://www.sigmadesigns.com/)
    Sigma Designs' headquarters are located in Milpitas, California. The company specializes in MPEG based video hardware for encoding and decoding. Recently Sigma Designs' introduced the Xcard, the first consumer hardware MPEG-4 decoder in the form of a personal computer add-on card.

    About GNU GPL (http://www.gnu.org/copyleft/gpl.html)
    The GNU General Public License is the most frequently used software license for Free Software development and is supported by the Free Software Foundation (FSF). Software distributed under the GNU GPL grants everyone modification and redistribution rights, on the condition that derived or redistributed software carries the same license.

    Contacts

    For contacting the XVID team please use the e-mail addresses contact@xvid.org or contact@xvid.de

    Please address your request to one of the following persons:

    Daniel Smith (USA)
    Michael Militzer (Germany and international)
    Christoph Lampert (Germany and international)
    Edouard Gomez (France)

  2. As someone who once worked for Sigma Designs... by StevenMaurer · · Score: 5, Informative

    ...all I can say is that I'm not one bit surprised. Many companies are morally flawed somehow, but not all of them revel in it quite so obviously.

    1. Re:As someone who once worked for Sigma Designs... by StevenMaurer · · Score: 5, Insightful

      It wouldn't work. This is a case of civil copyright infringement, not the penalty phase of a felony conviction.

      What the XVid folks really need is some sugar-daddy corporation (FSF, IBM, anyone?) to fund their legal costs going after SD.

      But before they do even that, I'd suggest the XVid people just tell Sigma Designs that if they don't conform to the GNU Public License, they'll start contacting their distributors to tell them about the situation - and that they're selling products in violation of someone's copyright.

      Believe me when I say that Sigma Designs will fold like a house of cards if they do that. At one time they had such a bad reputation with distributors, they had a terrible time just getting their products out on the shelves. Assuming little has changed (and this episode convinces me it hasn't) it wouldn't take much to have them get dropped completely. And that would hurt them where it hurts the most - in the pocketbook.

    2. Re:As someone who once worked for Sigma Designs... by JoeShmoe · · Score: 5, Informative

      I agree. My first experience with Sigma Designs was consulting for a company and finding out they were purchasing MPEG-1 decoder cards for $200 a pop to play training videos.

      This was in 1998. Well after software-based codecs were freely available (Microsoft shipped ActiveMovie with MPEG-1 playback support back when it released Internet Explorer 3.0 somewhere around 1995? 96?)

      I did a demo for the deparment head showing two systems side-by-side, one with Signa's REALMagic card and their codec, and the other with Windows Media Player installed. Ironically, the guy picked the software based solution as the "higher quality" solution and said it was worth the extra $200.

      Needless to say, when the labels were revealed, they immediately cancelled the pending order for 6000 REALMagic cards, a savings of $300,000.

      Sigma Designs seems like a bunch of snakeoil salesmen to me.

      - JoeShmoe

      .

      --
      -- I wonder which will go down in history as the bigger failure: the War on Drugs or the War on Filesharing
  3. I'm not surprised by IamTheRealMike · · Score: 5, Insightful
    If this is true, it doesn't surprise me at all. It was only ever going to be a matter of time before a corp violated the GPL. I mean, there's a huge amount of free code out there - if you're looking at what would be for your project 6 months work right in front of you, ready to use, the temptation just to "accidentally" include it must be tremendous.

    It's easy to think, who would ever know? Comparing binary compiles is a good way of testing, but it's not 100% proof. It's damn close, but would a judge know that?

    Most interesting of all, will the FSF actually do what it always said it'd do, and protect this GPLd software? And will the GPL stand up in court? IANAL, but I don't see any reason why it shouldn't. This sort of thing needs to be dealt with swiftly however, lest other companies get the idea that it's OK.

    1. Re:I'm not surprised by Rick+the+Red · · Score: 4, Interesting
      Unfortunately, the FSF has no legal standing to bring suit because they are not the copyright holders. I hate to say it, but in this case the bully just chased XVID off the playground, and kept their ball. If the XVID guys won't stand up to the bullies, the bullies win.

      --
      If all this should have a reason, we would be the last to know.
  4. Re:GPL Powerless by gorilla · · Score: 5, Insightful
    if someone infringes upon it, they can just ignore your complaints and take an 'so sue me' attitude.

    They can do this for any license, including one where you only release binaries (I've seen at least one instance where the only difference between two programs is that one had the startup messages patched to display a different message).

  5. Any Questions? by SloWave · · Score: 5, Informative

    SIGMA DESIGNS TO HOLD SECOND QUARTER CONFERENCE CALL

    MILPITAS, CA, (August 12, 2002) - Sigma Designs (NASDAQ: SIGM), a leader in digital decoder solutions, announced today that the Company will be discussing second quarter results during a conference call on Tuesday, August 27, 2002, at 4:45 p.m. Eastern time. The dial-in number is (612) 332-0226. A question and answer period will take place at the end of the discussion. The earnings release will cross the wire at the close of market on the same day.

    The call will be webcast live from www.vcall.com. An audio replay of the call will be available shortly thereafter the same day and will remain on-line for 30 days. For further information, please see the link to this site on our website at www.sigmadesigns.com or email investor relations at IR@sdesigns.com.

  6. Read the diassembler output by SirSlud · · Score: 4, Insightful

    It's pretty damning.

    Makes you wonder how often companies silently steal code .. any famous examples from the past that never received widespread attention? I'm asking about GPL'd source specifically. I'm aware there is tons of BSD licence'd code in commercial projects, but the licence, being Bill Gates' wet dream, allows for this, right?

    --
    "Old man yells at systemd"
  7. Re:MOD Parent Post up! by gimpboy · · Score: 4, Insightful

    I know it's posted anonymously, but this news release is important background that is not attainable through the links of the original post.

    if by not attainable you mean that clicking on the link to xvid.org then clicking on the press releases in the files section is an impossible feat, then yes the information is not attainable throught the links in the original post. it is indeed a harsh reality.

    how about the unattainable information in pdf format.

    for more unattainable information i would goto this oracle of truth

    --
    -- john
  8. Re:GPL Powerless by Bonker · · Score: 5, Interesting

    Tell that to Avery Lee who got his code stolen. The FSF was very helpful in forcing the individuals who stole it to comply with GNU terms.

    Being that Xvid is a larger project than Virtual Dub, I would be highly surprised to not see the FSF step in at some point.

    --
    The next Slashdot story will be ready soon, but subscribers can beat the rush and slashdot the links early!
  9. Re:No, use corporation speak instead by marcop · · Score: 5, Funny

    Why not just call them a bunch of pirates, as Disney, RIAA, MPAA, etc. call individuals who allegedly are involved in copyright infringement. Then the developers can claim "X" dollars lost and say how their children, pets, etc. are starving because of piracy.

  10. Re:Anybody else notice... by NanoGator · · Score: 5, Funny

    "Anybody else notice...that XVID is DIVX backwards?"

    Nice DMCA violation there. Heh.

    --
    "Derp de derp."
  11. Sigma Design Resumes by Clipper · · Score: 5, Funny
    Here's some snippets from resumes recently submitted to Sigma Design's HR department

    Qualifications:
    • Advanced knowledge of the C-c and C-v hotkeys in Windows
    Work Experience
    --
    /<en
  12. Re:Sue them by Dark+Paladin · · Score: 5, Insightful

    Us.

    There should be a donation system to finance a lawsuit for the GPL - perhaps with the EFF or the Free Software Foundation being the collector.

    We are the GPL. We are the ones who use it, live it breath it - and if we are truly a community that believes that the sharing of ideas is more powerful then the hording of them, then we must be the ones to pay for its support.

  13. Comment from the FSF by prizog · · Score: 5, Informative

    We at the FSF are saddened by this GPL violation. Because we do not hold copyright on Xvid, we can't act directly. We support the Xvid developers' effort to get full GPL compliance from Sigma. If you're interested in how we enforce the GPL when we hold copyright, please see our attorney Eben Moglen's essay, Enforcing the GPL.

  14. Re:GPL Powerless by kuroth · · Score: 5, Informative

    The best legal advice I ever recieved was from my father. It was, simply "I don't need a lawyer. I'm right." It's a philosophy that's been working for him for decades as a small business owner. It's worked equally well for me, also as a small business owner, for six years.

    If someone plagarizes your work, sue them. The only information the judge is going to need is a copy of their source, and yours. Are they the same? Judgement for plaintiff.

    Finding a couple of pro-bono expert witnesses in this case should be a snap, if that's even necessary. Hell, ask Stallman, he's always looking for a pulpit.

    Over the years, I've had three or four clients who didn't want to pay for work I had performed. A couple of them even said "We're ready to be the 800 pound gorilla on this matter." (That's a direct quote from one, BTW).

    Ok, you be an 800 pound gorilla. I have all my notes, all the specifications, all the correspondence related to the project ready to go. I have notes on every phone call, every meeting, every conversation. It costs me $40 to file, and all I have is time. If you want to tie up your $150 an hour lawyers for six months fighting an angry badger about a $20K project, go right ahead.

    Funny, the check always shows up after that.

    Don't let people push you around because you're a small operation, or because they think having more money guarantees them victory through intimidation.

    K.

  15. YES! I read it carefully - it's a smoking gun!! by Totally_Lost · · Score: 5, Informative

    I've been coding in asm since 1967 on two dozen different architectures. The asm routines that were disassembled are instruction sequence, register assignment and structure offset identical for dozens upon dozens of lines that are not simply C interface code. The probablility of two programmers choosing exactly the same data structures, exactly the same manual register assignments, and exactly the same instruction sequences is about the same as being struck by the planet venus in our lifetimes.

  16. Re:Tempting by MrHanky · · Score: 4, Funny

    From WordNet (r) 1.7.1 (July 2002) [wn]:

    hipocracy
    n : rule by hippopotamus, a massive thick-skinned herbivorous animal living in or around rivers of tropical Africa.

    Sorry, couldn't resist. Yes, as you said, tempting. :-)

  17. Sony and SN Systems copied GCC for PlayStation by Myria · · Score: 5, Interesting

    In the early days of the original PlayStation, Sony and SN Systems took GCC and modified it to become a compiler for PlayStation. However, SN Systems made a number of additional modifications, such as by adding dongle-based copy protection to protect "their" work. This crap finally stopped a few years later when game developers complained and Richard Stallman got involved. This incident is rarely heard about because PSX game development was under NDA. However, an NDA that covers GCC is illegal, because it would restrict the rights of the next user to copy GCC (thus automatically revoking Sony's right to copy GCC). The PlayStation 2 compiler is now distributed with clear notice that the GCC and binutils portions are under GPL and not covered by the NDA. They also come with source code. They are in fact the same source tree for professional developers as the GCC used in PS2 Linux. myria

    --
    "Screw Sun, cross-platform will never work. Let's move on and steal the Java language." - Visual J++ Product Manager
  18. It's not a slam dunk by btempleton · · Score: 4, Interesting

    Did the authors register their copyright? They need to do that to get statutory damages. If they did, the statutory damages could be extremely high, and so you would have a case for Sigma to fear.

    If not, they should register it right away, while Sigma is still distributing the alleged infringement.

    If not registered, you can only get actual damages. And it's easy to see a court saying that actual damages -- which are financial, not personal -- are zero in a case like this. How much money did the team lose? You might do better arguing how much Sigma made from the infringing code but they would of course make the argument that the money came from their proprietary additions, not the GPLd code which of course anybody can get for free.

    To compel them to comply with GPL, you will have to get the court to agree with the implied licence. That's harder, though if they really have documents from Sigma admitting that they were aware of the GPL terms you might have a shot.

    Otherwise, I don't think anybody has had a court rule that you would be bound by the GPL contract if you used GPLd code. They would rule you violated copyright, but will they rule more?

    Think about it. If I put a licence in my code saying "Use this code without my permission and you must give me your whole corporation" no court would consider that enforceable.

    Will they consider it enforceable if the licence says "use this code without my permission and you must give away all the source code to everything you bundled with it"? Also in doubt.

    Could be. Could not be.

    --
    Has it been over a year since you last donated to the Electronic Frontier Foundation
  19. Re:Sue them - I agree, for all copyright violation by Sancho · · Score: 5, Interesting

    Check this thread out , though:
    http://forum.doom9.org/showthread.php?s=& threadid= 32015

    Specifically:
    I spoke to a manager at Sigma Designs over the phone a couple weeks ago, and he basically verified the accusation - a programmer "mistakenly" based their MPEG-4 codec around XviD, added a few patches, changed the interface (but not by much), then released it as their own. We were informed that they were replacing all GPL'ed code with their own, to avoid a licensing problem (even though copyright infringement had already occurred, of course).

    After that, version 1.1 came out, which was a complete slap in the face. Supposedly "rewritten", it was nothing but a different checkout of XviD with a few registers changed and some code reordered.

    Should be an interesting few days.

    -h


  20. Re:unanswered question by fishbowl · · Score: 4, Informative



    "why have they ceased development?"

    If you were painting someone's house, and you
    found out for certain that they had no intention
    of ever paying you, would you keep painting the
    house? Or would you take your ladder, your paint,
    and your brush, and go elsewhere?

    What if you were painting the house, and you found
    out that not only were you not going to get paid,
    but that the person was going to then take your ladder,
    your paint, your brush, your truck, and call the police
    to have you arrested for trespassing?

    Would you stay and finish the job?

    How would you feel about this story if the Sigma folks
    had finished their product, and then turned around
    and accused XVID of stealing THEIR work? Who's to
    say they STILL won't try that?

    --
    -fb Everything not expressly forbidden is now mandatory.
  21. Finally the missing step!!!! by JUSTONEMORELATTE · · Score: 5, Funny

    1: Create cool open source stuff
    2: Get ripped off by a for-profit outfit
    3: Prove it, and sue
    4: Profit!

  22. Conference calls are for analysts. B-) by Ungrounded+Lightning · · Score: 5, Insightful
    No sense wasting your time; I can all but guarantee you the conversation will go something like this:

    Q: "Does Sigma Designs have any comment on the recent accusation from the XVID team that their MPEG-4 codec infringes on XVID's copyright?"

    A: "We're not aware of any court filings pertaining to the matter, so no, we have no comment."


    Perhaps you will get that answer, but you may make other shareholders aware of it and start thinking about if they should still own stock.

    That will get the company's attention better then anything.


    It's better than that.

    Conference calls are for analysts, i.e. reporters for the financial media and stock brokers. ANYONE can call in. (But you'll be asked for your affiliation. I recommend one of our big guns be the questioner - like somebody from FSF.)

    Ask that question and the whole financial media community will hear it as:

    XVID says you stole your core technology from them. They're about to sue. Since it's a GPL case they may have a well-endowed foundation and several large companies that are dependent on GPL for their business models to front the fees and several law professors to do pro-bono work for them as they litigate the enforcability of the GPL, with you funding the anti-GPL side. They'll also have the entire software community spreading the word that your technology is stolen, to your customers and distributors.

    What effect will this have on your stock price?


    There IS no good answer. So:

    The brokers will call their customers and tell 'em to dump ahead of the rush.

    The funds will just dump right away and try to beat the brokers to the market.

    The analysts will write scathing articles about the stock for the financial papers and shows.

    And their stock tanks. Even if the company survives the executives' stock options turn into wallpaper.

    And that's BEFORE you get around to actually filing a suit. B-)

    I'd go out and short 'em right now (or buy puts) - except that the software codec is not their core product. So they can clean up their act by releasing the source to the software codec under GPL before the conference call.

    And the news (including links to XVID's smoking gun and the fact that slashdot has this item already) is already on the Yahoo SIGM stock discussion board. So it will already be factored into the price by the time I could trade. B-(

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
  23. Rape Is still rape if you're not a hooker by Stephen+Samuel · · Score: 4, Interesting
    Just because I'm not charging cash for something doesn't mean that it's not valuable -- or that there isn't a 'price' associated with access.

    Software distributed with the GPL is not without cost The 'price' of using GPL code is that if you make changes to the code, you can't distribute the modified object code without also distributing the modified source code.

    (I.E. the price is your derivative code).

    In any case, these people are stealing copyright code without permission. Since they're charging for it, then they are liable for both the price they're charging for this stolen code and any punitive damages (which can be quite hefty for copyright violation).

    It looks like this might be a good time to call in the lawyers.
    ____________
    And yes there IS damage to me from having someone steal my GPL code. When I put code under the GPL, my expectation is that, in return for making my source code freely available, I'll get back from the community that uses my code the work that they do to improve my code. When someone steals my code and puts it into a proprietary product, I loose in a few ways:

    1. I don't get the 'payment' of the changes you made to my code.
    2. If you make 'interesting' changes, I have to pay you to get access to my code (as modified by you).
    3. If people start using your code instead of mine, then they may stop contributing GPL codebase.
    4. I don't get the public exposure that comes from the acknowledgement that people are using my code. (this could cost me job opportunities).
    --
    Free Software: Like love, it grows best when given away.
  24. Re:Sigma still doesn't get it. by grnbrg · · Score: 4, Insightful
    Yeah, they've released the source. Weeee! But there's still a nasty click through to get it --

    License. This Software is licensed by Sigma, free of charge, to you as end user solely for the purpose of building ISO MPEG-4 compatible content for your own use. This license to you is personal, non-transferable, non-exclusive, and without right to sublicense the use of the Software. You may NOT modify, prepare derivative works of, rent, lease, distribute, sublicense, sell or transfer the Software or any part thereof.

    And added to all (most?) of the source code files --

    Copyright © 2002 Sigma Designs, Inc. All Rights Reserved

    Source and object code (Copyright Sigma Designs 2002) may be covered by one or more pending patents.

    (GPL header stuff)

    Sigma Designs, Inc. www.sigmadesigns.com

    This code inspired by the XVID MPEG-4 VIDEO CODEC

    Although I think the best bit comes again from their Click-thru licence to get the source --

    You also expressly agree that you will not violate any copyright of a third party or Sigma in your use of the Software.

    Bwahahahaha. Do as I say, not as I do!

    Idiots.

    grnbrg