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MPEG 4, Windows Media 9 At War

Andy Tai writes "According to this News.com report, backers of MPEG 4 are protesting Microsoft's licensing fee structure for Windows Media 9, which is up to 50% less than MPEG 4's. They accuse Microsoft of blocking the progress to move to an 'open standard' (MPEG 4), posing unfair competition and threatening consumer choice. Of course, what is really needed is a third choice, a totally Free Software media codec solution that's competitive with both Windows Media and MPEG 4."

83 of 523 comments (clear)

  1. Wow. by NerveGas · · Score: 4, Insightful


    It's not often that people become angry because a corporation is selling things cheaply.

    Rather than be mad at Microsoft for charging so little, I'd be mad at the MPEG body for charging what they do.

    steve

    --
    Oh, you're not stuck, you're just unable to let go of the onion rings.
    1. Re:Wow. by Ninja+Master+Gara · · Score: 5, Insightful

      Undercutting to gain market control and then skyrocketing prices is the reason anti-trust legislation exists.

      --

      ---
      When I grow up, I want to be a kid again.
    2. Re:Wow. by jsonic · · Score: 3, Insightful

      Anti-trust legislation exists to keep companies from illegally abusing their market position. In your example, the raising of prices after killing the competition would be the abuse, not the lowering of prices. Lowering prices is the entire point of competition from the point of view of the consumer.

    3. Re:Wow. by oliverthered · · Score: 5, Informative

      Wrong,
      it's the abuse of a monoply position to unfairly leverage another market.

      So if they bundle WMP9 with a monopoly product and then set the licensing at a loss making level then that's unfair, since there leveraging a monopoly product (windows) by intergrating WMP9, and then undercutting the competition on content costs.

      --
      thank God the internet isn't a human right.
    4. Re:Wow. by Daniel+Dvorkin · · Score: 4, Interesting
      In your example, the raising of prices after killing the competition would be the abuse, not the lowering of prices. Lowering prices is the entire point of competition from the point of view of the consumer.
      Um ... and how exactly do you suppose "killing the competition" happens? Look, when a company makes a better product and sells it at a better price, that's competition. When a company makes a product (whether or not it's better -- usually not, because monopolies and shitty products always seem to go hand in hand) and sells it at a better price for however long it needs to do so to drive the competition out of business, even if it's taking a loss in doing so, that's abuse.

      Has Microsoft ever, in its entire history, made a better product than the competition, sold it for a better price, and made a profit doing so? I'm not trolling; I'm genuinely curious to know if this has ever happened.
      --
      The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
    5. Re:Wow. by sharkey · · Score: 4, Insightful

      So if they bundle WMP9 with a monopoly product and then set the licensing at a loss making level then that's unfair,

      Hell, they can leave out the bundling. Use the profits from Windows, Office, etc. to make it possible to undercut the competition for WMP2 is dumping in and of itself. The bundling is the kick in the nuts for the enemy who's already cut off at the keeps due to the MS product dumping.

      --

      --
      "Outlook not so good." That magic 8-ball knows everything! I'll ask about Exchange Server next.
    6. Re:Wow. by oliverthered · · Score: 3, Informative

      Buy taking Netscape out of the market, many web sites only work correctly with IE and windows(maybe mac).

      Also there is no choice, or very little.

      If Microsoft price standards bodies out of existence then there will be no non M$ standards (ok gross oversimplification), open standards tend to be free for free use.

      Standards bodies should really be not for profit.

      --
      thank God the internet isn't a human right.
    7. Re:Wow. by ergo98 · · Score: 4, Insightful

      Firstly again this is anti-Microsoft revisionist history: Netscape came out with a full featured virtually free browser that virtually no one actually paid for (everyone was a "educational" user), destroying the market for companies like Spyglass. Indeed, when IE first came out you had to buy it in the Plus! pack.

      Secondly have you heard of Mozilla? What about Opera? Either are VERY credible competitors to Internet Explorer. Opera even charges money for their browser.

    8. Re:Wow. by Angry+White+Guy · · Score: 3, Insightful

      No, but by the same token, killing netscape, Microsoft stands to profit through IIS server sales, programming technology sales, consulting, etc.

      They are creating a dominant environment for all their products by dumping (giving away, selling at a loss) a handful of core components.

      --
      You think that I'm crazy, you should see this guy!
    9. Re:Wow. by blazerw11 · · Score: 4, Insightful

      MS Office. Since Win3.11 days, MS Office has generally been easier to use than other similar apps.
      I think that Office is probably still the best. However, have you ever put a non-techie on a new version of Word and listened to them scream at their computer about all the "intelligent" changes it trys to make?
      Also, I don't think they can make the help system any worse. When I click on Help, I don't want Excel taking up half the screen and help taking up the other half. That makes both apps unusuable.

      Also IE. Netscape sucked, IE worked, prices were the same (free).
      For clarification:
      1. Netscape was not originally free (as in beer).
      2. IE 2 sucked.
      3. IE 3 sucked (a bit less).
      4. IE 4 was almost as good as Netscape 4 (some would say as good.)

      --
      A great many people think they are thinking when they are merely rearranging their prejudices. -- William James
    10. Re:Wow. by a_n_d_e_r_s · · Score: 3, Insightful

      Well, they had to do that because most other client was free - but some people does not seam to remember that the web browsers from the beginning was free...

      Mosaic

      --
      Just saying it like it are.
    11. Re:Wow. by tshak · · Score: 5, Interesting

      But who said that they were selling WMP9 at a loss?

      --

      There is no longer anything that can be done with computers that is nontrivial and clearly legal. -- Paul Phillips
    12. Re:Wow. by Ninja+Master+Gara · · Score: 4, Interesting
      Microsoft's tactics against Netscape went MUCH further than just releasing another, superior browser, onto the market. The core of what MS did that was bad as opposed to Netscape's similar "free" release and success was bundling IE in Windows 95. The Plus! pack release is seldom called into contention, at least partly because IE was godawfully unstable at the time.

      Netscape's rise was more like Google's, where it rose to "power" by being more and more favoured by web surfers; it's major competition was also free. We used Internet in a Box which came with Spry Mosaic, but DOWNLOADED Netscape on top of that because it was better.

      My god man, Netscape 2.0 had BACKGROUNDS! The web was no longer gray!

      --

      ---
      When I grow up, I want to be a kid again.
    13. Re:Wow. by Milo+Fungus · · Score: 4, Interesting

      Original question: Has Microsoft ever, in its entire history, made a better product than the competition, sold it for a better price, and made a profit doing so? I'm not trolling; I'm genuinely curious to know if this has ever happened.

      Your answer: MS Office. Since Win3.11 days, MS Office has generally been easier to use than other similar apps. It's usually been fairly expensive too. But it has a *massive* market share, and the revenue from the Office suite is basically subsidising everything else in MS - operating systems make a small profit, Office makes an enormous profit, and everything else MS makes is actually making significant losses. And Office had to establish this position over the dead bodies of many other well-entrenched packages.

      What you say is true, but it doesn't answer the question. Some of the well-entrenched packages (ie: WordPerfect) were superior to Word in the opinion of end users. WP had full functionality by about version 5. The later releases were mainly GUI enhancements (not entirely, but in general). I used to work in IT for the LDS Church, which used WP back in the mid 90's. While I worked there WP was phased out in favor of Word. Many of our users were irate about this, especially when Word would put an indent in the same place no matter what you did (or some similar stupid behavior). In WP you could just reveal the codes and easily see the problem. Not in Word. You could make an argument that Word is superior to WP, but it wouldn't fly so well with a lot of people.

      Not a flame, just a nitpick.

  2. Basic economics by tempfile · · Score: 4, Insightful

    If a competitor offers a comparable product for a lower price than you do, he will sell more. The MPEG 4 people should rather lower their fees instead of complaining how evil MS is for making low prices.

  3. If they're pissed at MS... by jpmorgan · · Score: 5, Insightful

    If they're angry that Microsoft is selling WMA9 for 50% less than MPEG-4, imagine how pissed they'd be with a fully Free software solution, selling for 100% less than MPEG-4.

    1. Re:If they're pissed at MS... by jpmorgan · · Score: 3, Informative

      Mencoder is not a codec. It uses other codecs.

    2. Re:If they're pissed at MS... by MtViewGuy · · Score: 3

      Oh, you mean the Ogg Theora project, done more or less by the same people who developed the Ogg Vorbis codec for audio compression?

  4. Pot, meet kettle. by Hayzeus · · Score: 5, Funny

    It's like watching Hitler and Stalin Jello(tm)-Wrestle -- who to root for?

  5. Gawd, more whining from an also-ran by stratjakt · · Score: 4, Insightful

    Let the MSFT-flaming commence.

    Of course MPEG4 could be:

    a) cheaper
    b) better
    or
    c) all of the above.

    I don't need another 'open standard' like MPEG2.

    --
    I don't need no instructions to know how to rock!!!!
    1. Re:Gawd, more whining from an also-ran by thelexx · · Score: 5, Insightful

      "if Microsoft wasn't around as this big tough huge competition, things wouldn't progress nearly as much"

      Yeah, like all the progress from the startups that never started due to VC's refusing to fund a business that even _might_ compete with MS.

      --
      "Gold still represents the ultimate form of payment in the world." - Alan Greenspan, 1999
  6. Microsoft and Standards by tyrani · · Score: 4, Insightful

    I think that Microsoft is trying very hard to create the standard rather then accept a standard. As in the past, Microsoft wants to have ownership of important software and video is the next major software hurdle.

    --
    rejected (19) accepted (0)
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  7. Calling the Kettle Black by BigumD · · Score: 5, Insightful

    I can't believe that MPEG-LA would even consider airing this out publicly.

    "You're killing innovation because you charge less than us"

    Please... If you were really that worried about adoption of your standard you would either A) Drop your license rate, B) Open your codec completely or C) Make a better product than MS' and the cost is a moot point.

    It's hilarious to see people cry foul at Microsoft when their business practices are practically the same.

    --
    --The space between my ears was intentionally left blank--
  8. Let me get this straight.... by ZoneGray · · Score: 4, Insightful

    Let me get this straight... these folks say they're promoting an "Open Standard" that costs twice as much to implement as much as Microsoft's proprietary solution?

    Did the definition of "Open" change while I wasn't looking?

    1. Re:Let me get this straight.... by stratjakt · · Score: 5, Insightful

      They define "open" as "We will sell it to anyone"

      They define "proprietary" as "Microsoft will sell it to anyone".

      Pure PR move. They count on the geek community viewing Microsoft as evil, vile monsters, and themselves as a committee of care bears.

      --
      I don't need no instructions to know how to rock!!!!
    2. Re:Let me get this straight.... by benwaggoner · · Score: 5, Informative

      No.

      MPEG-4 is open because all implementation details are public. You can get a copy of the standard, and build your encoder, decoder, server, etcetera based on it. No NDA's to sign or anything. You have to pay license fees in some cases if you distribute commerical products, but writing the software is something anyone can do.

      This isn't true with Windows Media 9. While some details are avalable, not all are, and some are under restrictive licenses.

  9. And this is surprising because? by Epeeist · · Score: 3, Insightful

    How many standards based pieces of software has MS tried to extinguish. In most cases because it didn't fit with their assumption that it might just undercut their monopoly.

  10. Um. Yeah right. by MetalHead666 · · Score: 5, Insightful

    "posing unfair competition and threatening consumer choice" - Of course... Don't you think Intel would have said something like that when AMD started selling cheaper CPUs? (Not nessecarily better, just cheaper). And what about Star Office? Cheap or even for free at times. It's just plain ridiculous to start complaining about the opponents' pricing points, instead of pushing your own advantages. But, of course, as far as "consumer choice" is regarded, a free alternative would probably make both of the others go bonkers.

    --

    "If you go to the next town, going across a desert is a shorter way." - Pu-Li-Ru-La (Taito)
  11. MP3 != MPEG3 by spanky1 · · Score: 3, Informative

    MP3 is the audio codec used in MPEG1. MP3 is short for MPEG1 LAYER 3. It is not MPEG3 (audio/video codec).

  12. MP3 is not MPEG3 by missing000 · · Score: 4, Informative

    You don't understand what an mp3 is.
    mp3 IS NOT MPEG3. It is MPEG1, layer 3.
    MPEG4 is not an mp3 replacement.
    See this for details.

  13. No. by spanky1 · · Score: 4, Insightful

    Since when does open == free?

  14. Come on... by jvmatthe · · Score: 3, Insightful
    They accuse Microsoft of blocking the progress to move to an 'open standard' (MPEG 4), posing unfair competition and threatening consumer choice.

    Most open standards cost nothing right? I mean, that's what I thought TCP/IP, XML, C/C++, and so forth were all about. So what's with calling something that requires a license fee to use an open standard?

    If they were really open, at least in the sense that I have come to expect, then MS couldn't possibly undercut them.
  15. I'm extremely confused by eyez · · Score: 4, Interesting
    Exactly how is it an open standard if you have to pay licensing fees to use it, and assumedly write code to create it?

    It seems like they're giving the whole idea of "open standards" a bad name. I realize it's more open than windows media, but I don't really think it's that open.

    What am I missing? What are the licensing fees for?

    --
    get 0wned. irc.w30wnzj00.com
    1. Re:I'm extremely confused by Koos+Baster · · Score: 5, Interesting

      Before Open Source Software became a mainstream notion (say 1990), "Open" as in "Open Standards" used to imply that a company supplied descent documentation with it's API. That's about as open as SUN's OpenLook.

      MPEG is "open" in that the standard was developed by a consortium of companies and other institutions. Therefore, it is propriety, patented, copyrighted and whatever... but these rights are not owned by a single company that's reluctant to reveal the ins and outs of its "standard". MPEG is open in that it openly discussed MPEG4's features before it hit the market.

      So, although MPEG indeed extorts consumers for using their stuff just like any company, a consortium is a much healthier construction viewed from other company's perspectieves. And therefore ultimately (due to competition) also to customers.

      So yes. It is confusing. (And I agree with the majority of posts that only a fully open standard, like Ogg Theora will settle this matter.)

      --
      The good thing about standards is that there are so many to choose from -- Andrew S. Tanenbaum

  16. Progress to move to an open standard by FooBarWidget · · Score: 5, Insightful

    They don't want Microsoft to block progress to an open standard? Then they should get rid of that stupid MPEG-4 licensing fees! It should be free for anyone. The licensing fee issues have blocked the progress of a lot of open source MPEG-4 codecs, like XviD.

    1. Re:Progress to move to an open standard by IamTheRealMike · · Score: 5, Interesting
      It should be free for anyone.

      Agreed, but I know what my dad would say to that (he works in the UK digital tv industry and is on several digital tv standards boards):

      Him: "Son, things like MPEG aren't simple, and take a lot of smart people a lot of time to create. They should be rewarded for their efforts"

      Me: "But how can something be an open standard if you have to pay for it?"

      Him: "Who says open standards have to be free to implement? It's documented and vendor neutral, that makes it open in my eyes"

      Me: "What about GPLd decoders though! Everyone will just end up using Ogg instead."

      Him: "What about them? It's easy for people to recreate technologies once the expensive research has been done, Vorbis is based on similar ideas to MP3 for instance. Creating them in the first place takes money though, who's going to do that if all the codecs have to be free of charge?"

      At that point I usually shut up, because I don't have a good answer. Looking at the way Ogg is developed I have tremendous respect for those guys, but they are working out their metaphorical basements. See how Tarkin (the research codec) lies abandoned? How would the people who worked on MPEG4 make money without licensing fees? Anybody? I'm sure there must be answers.

      Heh, perhaps we can chat about this on irc over the weekend foo :)

    2. Re:Progress to move to an open standard by platypus · · Score: 4, Informative

      Him: "What about them? It's easy for people to recreate technologies once the expensive research has been done, Vorbis is based on similar ideas to MP3 for instance. Creating them in the first place takes money though, who's going to do that if all the codecs have to be free of charge?"

      At that point I usually shut up, because I don't have a good answer.


      I'll help you. The answer is science. This old fashioned thing they do on universities. There are these people called scientists, who gave and many still give a flying shit about "patent license fees". Without them, all these "lots of smart people" working on compression schemes would still live in a cage and go in the woods to berry for their daily food.

      The idea that mp3 was so original that ogg wouldn't exist without it is blatantly wrong. At best, it showed that there is a market for that which motivated the creator, but nothing more.
      All the foundations were well known long before mp3 emerged.

  17. The jello... by wiredog · · Score: 4, Funny

    maybe they'll both drown.

  18. They cannot survive selling lower! by Viewsonic · · Score: 5, Insightful

    Have you not followed the entire Monopoly cases? Microsoft undercuts its competitors to the point where the competition simply CANNOT sell any lower because they dont have the BILLIONS in resources to stay in business like Microsoft can, their strategy is to out live the competitor. They (MPEG) will eventually go belly up, like most of Microsofts competitors. This is standard Microsoft Monopolistic tactics. Find market to take over, then release a product far cheaper than competitor with NO INTENTION of making a profit, watch competitor unable to compete with price wars, watch competitor fold shop. Microsoft wins!

    1. Re:They cannot survive selling lower! by guacamolefoo · · Score: 4, Interesting

      Have you not followed the entire Monopoly cases? Microsoft undercuts its competitors to the point where the competition simply CANNOT sell any lower because they dont have the BILLIONS in resources to stay in business like Microsoft can, their strategy is to out live the competitor.

      Sooooo...Microsoft should be forced to continue to charge a high price for its product in order to benefit consumers?

      GF

    2. Re:They cannot survive selling lower! by hkmwbz · · Score: 3, Insightful

      MSIE is not free. It is an important part of an expensive operating system.

      --
      Clever signature text goes here.
    3. Re:They cannot survive selling lower! by Zathrus · · Score: 4, Insightful

      Again, name one instance where MS raised prices AFTER the competition went away

      Both Office and Windows exhibit this behavior. Back when Office had stiff competition from competing suites the price was lower. When Windows was facing off against OS/2 it was cheaper as well.

      We may see a reduction in price in the near future, since there is some backing behind competing office suites (with HP and Gateway bundling non-MS suites, plus OSS products like AbiWord and OO.org). Windows is feeling increasing pressure on the server pricing from Linux as well.

      That said, I can't really whine about the royalties on MPEG4 vs MP9. The royalties on MPEG4 are generally considered excessive in the first place, particularly since most of the R&D by various companies was done as a tax write off. This really isn't a case where the competition can't afford to match prices.

      It's really amusing watching this thread as people try to decide which is the lesser of two evils.

  19. room to prove themselves? by The+Evil+Couch · · Score: 4, Insightful

    As many such issues get ironed out, supporters of MPEG-4 want to ensure that it has room to prove itself in the market.

    yes, as I recall, there was a college kid who coded a peer to peer network so that he could swap mp3s with his buddies. he called it Napster. the guy had absolutely no room to prove himself in the market and until the lawsuits rolled out, he was dominating it.

    another college kid coded a windows gui for playing mp3s. he called it Win-Amp. he eventually got his product bought by AOL-TW for several million and with virtually no marketing, winamp is one of the most preferred mp3 players out there.

    point is, you don't need "room to prove yourself". if your product is superior, the market will MAKE room for it.

    1. Re:room to prove themselves? by Idarubicin · · Score: 3, Insightful
      he called it Napster. the guy had absolutely no room to prove himself in the market and until the lawsuits rolled out, he was dominating it.

      winamp is one of the most preferred mp3 players out there.

      point is, you don't need "room to prove yourself". if your product is superior, the market will MAKE room for it.

      You've demonstrated that it's easier to make room for oneself in a market by giving your product away for free. Now show me how to get a product adopted when your competitor is pushing a loss leader financed by $40 billion in cash reserves and MS Office.

      Bit tougher, isn't it? Not to say that it can't be done, but this would not be the first time that MS has crushed a better product by pushing its own products at a loss--at least until the competition went away.

      --
      ~Idarubicin
    2. Re:room to prove themselves? by liquidsin · · Score: 3, Interesting

      Now show me how to get a product adopted when your competitor is pushing a loss leader financed by $40 billion in cash reserves and MS Office.

      Make a better product. Oracle costs way more than MS SQL Server, but people still use it. People (or, more specifically, companies) will pay more for a better product. Rather than whine about MS undercutting them, they should be trying to explain why their codec is better. If my DVD player costs an extra 25 cents to make but I know I'm getting a superior product, I'll spend it. Hell, I'll even eat that extra 25 cents per unit to keep my player priced with the competition who used the cheaper, inferior codec. The MPEG consortium has large corporations as members. I'm sure none of them are going out of business because they're selling fewer 50 cent licenses.

      --
      do not read this line twice.
  20. Neither standard is open by rknop · · Score: 5, Informative

    From a free software purists point of view, does it matter who wins? Neither format is an "open" format.... MPEG-4 may be developed by an industry consortium, but as with so-called RAND licencing, unless I misunderstand something their licencing fees make it impossible to implement the code legally in free software. (Is this the case? I'm guessing that MPlayer's mpeg4 support is dubious legally.)

    What would be best is that if they make it contentions and messy enough fighting each other that both standards are weakend. That will make Ogg Theora look even that much more attractive to companies and the world at large once it comes out, and hasten the support of Ogg Theora. With some luck, that will become the standard, or at least a standard, that is so widely supported that those of us who care about and pay attention to these things can just use it.

    -Rob

    1. Re:Neither standard is open by benwaggoner · · Score: 5, Informative

      The licensing terms aren't that bad, and getting better for newer versions. For example, the forthcoming AVC MPEG-4 codec will be free to implement in all no-cost software. Even now, you get a pass on the first 50,000 distributed players. MPEG-4 is less difficult do deal with than MP3 licensing, and there are certainly lots of stuff in the Free Software community that can author and play back MP3 files!

      MPEG-4 is open because full implementation details are public. While you certainly need to pay to do commerical products with MPEG-4, all details are available for implementation. This NOT true of Windows Media 9. There are nearly a dozen companies today competing to develop the best MPEG-4 encoder. But the only company that can produce the WM9 codec is Microsoft.

      And Ogg Theora is still vaporware, with a public release not until this summer. It's based on VP3 and Vorbis, neither of which are as efficient as today's MPEG-4, let alone the next generation codecs like AVC and the AAC-SBR audio codec, both of which should be in products this year.

    2. Re:Neither standard is open by rknop · · Score: 3, Interesting

      The licensing terms aren't that bad, and getting better for newer versions. For example, the forthcoming AVC MPEG-4 codec will be free to implement in all no-cost software. Even now, you get a pass on the first 50,000 distributed players. MPEG-4 is less difficult do deal with than MP3 licensing, and there are certainly lots of stuff in the Free Software community that can author and play back MP3 files!



      Free to implement in no-cost software is better than per-seat licenses.... It does mean that Linux users (for example) can get something that will work. Still, that kind of limitation prevents a true open source implementation.



      Re: all the free software things that author and play back MP3 files, my understanding is that they are all black sheep-- not really legal given the current MP3 licencing requirements. Which practically may not be that big a deal, but it is a worry out there.



      Your point about the MPEG-4 standards being published is good, though. It's more open-- or at least far less closed-- than WM9, I would fully agree with that. It's just not completely an open standard :)



      As for Ogg Theora: vaporware, yes, but I predict we'll see it "for real" in 2003. (Come make fun of me if my prediction is wrong.) As for the technical quality, I don't know enough to comment intelligently. How does the efficiency really compare to MPEG-4? What are the efficiency drawbacks? (I.e. is it a speed thing, a size thing, etc.?) How does the quality compare? (Although that latter one, from watching some of the early Vorbis/MP3 debates, is necessarily subjective. I know from my point of view Ogg Vorbis is great and it's what I use for encoding audio.)



      -Rob


    3. Re:Neither standard is open by benwaggoner · · Score: 3, Insightful

      I'd say MPEG-4 is Open, but not Free, in FSF terminology. Different strokes for different folks. MPEG-4 probably has more engineer-hours in it that the Linux kernel, and a lot of those companies wouldn't have participated if they hadn't thought they'd get money back on licensing terms. But yes, more flexible licenses would certainly help. We'll see what happens.

      And I expect a lot of "black sheep" apps ala MP3, to exist for Linux. Check out MPEG4IP for a LAME-equivalent.

      As for Theora, who knows? It isn't even in beta yet. It's VP3 based, and unless they enhance that code a LOT, it isn't going to be quality competitive with the best MPEG-4 implementations. But maybe they are enhancing it a lot.

      Video codecs are a lot harder than audio codecs. And the new MPEG-4 audio codec (AAC-SBR) is a LOT better than Vorbis.

    4. Re:Neither standard is open by IamTheRealMike · · Score: 3, Insightful
      I'd say MPEG-4 is Open, but not Free, in FSF terminology. Different strokes for different folks.

      Indeed... in fact Alan Cox himself has said that the licensing of the code doesn't matter so much as open interfaces, so if people want to charge for implementations that's fine by me as long as free implementations are allowed as well...

      And I expect a lot of "black sheep" apps ala MP3, to exist for Linux. Check out MPEG4IP for a LAME-equivalent.

      Yes, well that's the worry isn't it - it's open now, and hopefully it'll stay open, but can the licensing be changed in future? Everybody thought you didn't need a license to decode MP3s until recently, and now people aren't so sure. That kind of legal vagueness is something to be warey of.

      As for Theora, who knows? It isn't even in beta yet. It's VP3 based, and unless they enhance that code a LOT

      According to the FAQ they have replaced the fixed lookup tables with dynamic ones that they can vary and tweak after Theora is actually released, and can possibly be altered on the fly. I don't know enough about codecs to say, but this approach seems to have worked well for Vorbis with the codec approaching and then surpassing MP3 for compression quality (though not by a huge amount).

  21. One Robber Baron to Another by javahacker · · Score: 5, Funny

    Let me understand this.... Microsoft didn't decide to price fix with the MPEG4 group, which would be an illegal practice, but instead decided to use their marker position to undercut them, which is also probably an illegal practice. This is the complaint?

  22. Not as Simple as it seems by the-banker · · Score: 4, Insightful

    It is true that MPEG-LA is being ridiculous. I have no sympathy for them and we can all see what 'reasonable and non-discrinatory' type licensing schemes get you.

    That being said, keep in mind that what is true today may not be true tomorrow. It may not even be true today. Er...

    Anyway:

    1. WMP9 may be cheaper _right now_. MS can change that tomorrow. WMP10 may be 2x as much.

    2. Just because the CODEC is cheaper doesn't mean its cheaper to implement Windows Media Streaimng over a solution streaming MP4.

    3. WMP9 limits (to what degree is debateable) your audience.

    4. Both of these technologies are on the path of the Dodo, IMO. Just as Real Technologies has fallen from techno-marvel to techno-garbage, so will these.

    The past has shown that a truly open standard usually emerges in these areas, via governmental intervention or not. NTSC for North American television. Whatever guage the current railroad system runs on. An RJ-11 phone jack. Streaming video is just too young to be at that stage yet.

  23. In other news... by trcooper · · Score: 3, Insightful

    Kraft is protesting Shur-Fine Brand Macaroni and Cheese because it sells for 50% less.

    They think MS should be required to sell for more. How the hell does this help consumers? It doesn't. They're simply trying to ride on anti-MS sentiment and maintain the rate which they can fleece the public.

    Unless MPEG-4 is significantly better than Windows Media, they should drop their prices and be competitive. Suggesting that the consumers should be forced to pay more for similar service JUST because it's not MS is ridiculous.

    If they think their product is so much better that it warrants a higher price do what Kraft does and market the damn thing as such. If it's not, cut the price. That's the way a free economy works, you have a right to charge whatever you want, but don't have the right to mandate what your competitors charge.

  24. Paying for standard or implimentation? by Halo- · · Score: 3, Insightful

    I'm confused. If the standard is "open" it means the format of the data and the algorithims used to produce it as disclosed, right? (Among other things...)

    But for MPEG-4 someone wishing to write code which is compatiable has to pay money to license the technology for every copy distributed, correct?

    What is the good of that? A "closed" system couldn't be legally reversed (DMCA.. grrr...) but any implementor's could license the spec from the owner and then do it.

    So what has been gained? The ability to go to jail for writing the application rather than for cracking the format?

  25. Re:Free option already available by the-banker · · Score: 3, Informative

    Sorry to rain on your parade, but Ogg Vorbis is not a replacement for MPEG4. Vorbis competes with MP3, which means "Mpeg-1 Layer 3". Obviously, the audio layer. MPEG-4 is a next generation A/V standard, like MPEG-1 and MPEG-2.

    Currently we have no Free Software alternative to these codecs, tho OGG Theora may be done in the next year.

  26. OpenDivX is dead by FooBarWidget · · Score: 5, Informative

    I'm surprised people even think about OpenDivX today. OpenDivX is dead, for a long time now (more than a year).
    In case you didn't know what happened: Project Mayo suddenly closed the CVS, removed the source code and used that source code to create their own, proprietary DivX 4 codec. OpenDivX isn't developed anymore. It's codebase is dead. The latest release (from more than a year ago) is full of bugs.

    Oh, and DivX is not OpenDivX in case you didn't know. They are 2 completely different things.

  27. Too bad. by TheSHAD0W · · Score: 4, Interesting

    I'm afraid MPEG will have to make do on half their expected revenue. (Frankly, I suspect it'll be more than half; by cutting their own prices, they'll gain more customers, and since costs for royalties are pretty much arbitrary, they won't have more in expenses to lay out.)

    Microsoft can price their product however they please. When they start causing problems, by restricting the platforms their codec performs on, or restricting the performance on other platforms, or if they wait 'til MPEG is dead and then raise their rates, THEN you can slam them for monopolistic practices.

    In the meantime, projects like Ogg will proceed, as will DivX, producing competitors MS may prove hard to beat. So let 'em try to take over the market...

  28. Reason they can't undercut... by klocwerk · · Score: 3, Insightful

    Think about it.
    I agree that it's silly in a capitalist society to be complaining that someone's selling something for less than you.

    Microsoft has a significant other source of income. They can afford to LOSE money selling their codec licensing, as it will strenghen the hold of their OS on the market.
    the mpeg4 people, as far as I know, only do that, and can't really afford to lose money on it.

    Look at the xbox. MS lost massive quantities of money on it, and didn't care, because it gave them a foothold into a new market that they wanted to dominate.

    Yes, on the surface, it's a stupid and silly request. But when you consider the above, it's bordering on unfair competition.

    just my thoughts.

    --

    "You worthless post!"
    -Shakespeare, 2 Gentlemen of Verona, 1. 1. 147
  29. Re:Just do what I do by The+Evil+Couch · · Score: 3, Insightful

    well, there's always the convience of being able to do EVERYTHING at the computer. if I want to watch a DVD, I'll toss that in my DVD drive. if I want to listen to some music, I'll pick a few thousand songs and throw them in winamp (yes, they're all legal copies:p) my best friend is pretty much the same way, except he plays his gamecube games using a wave-bird IR controller and the video in for his PC. not to mention the overwhelmingly large amount of stuff that we can do on computers that can only be done on a computer.

    it's really a matter of personal opinion. if you view your box as a tool and your other electrionics as fun, then you'll naturally gravitate to your other electronics. however, I tend to view my computer as fun and something that I just so happen to be able to get work done on. so I'd rather be on a computer.

  30. Re:Free option already available by supergiovane · · Score: 3, Funny
    Gzipped txt is another good compressed standard.

    Let's make a deal: tell me how do you store videos in OGG format and I'll tell you how I archive all the pr0n I create in gzipped textfiles.

    --
    Signatures are for stupids.
  31. Apple warned them.... by jjh37997 · · Score: 3, Insightful

    Apple warned them that their rates were too high. They had to fight tooth and nail to get MPEG-LA to drop its rates to their current level, maybe now they'll listen...

    1. Re:Apple warned them.... by IamTheRealMike · · Score: 3, Interesting
      (drat, posted anonymously for some reason, i must have clicked the box by accident)....

      Apple warned them that their rates were too high. They had to fight tooth and nail to get MPEG-LA to drop its rates to their current level, maybe now they'll listen...

      I doubt the MPEG-LA will ever drop licensing entirely. It's possible, but unlikely.

      That then raises the question - how is QuickTime open again? Yes yes, I know the container format is documented (although documenting something does not make it open obviously) but whenever people say "Apple should open QuickTime", the Mac apologists always say "QuickTime is open, it's just the codecs, and when everybody uses MPEG4 you won't have anything to complain about".

      So, what will Apple do now? It's getting easier to setup MPlayer to use the QuickTime codecs via Wine, but it's still ugly. When will all those trailors be encoded in a format that can be easily played on the platform from which it borrow so much? They say like want digital video for everyone, why don't they fund the Theora team?

  32. Re:XviD by FooBarWidget · · Score: 4, Interesting

    This isn't just about the codec. It's the standard. XviD implements MPEG-4. However, to use XviD, you still have to pay licensing fees to MPEG4-LA. That's why XviD calls itself an "educational project" so the developers don't have to pay the licensing fees. But the users of the codec still have to pay for a license.

  33. Not quite so anticompetative by Simon+Hibbs · · Score: 3, Interesting


    Their pricing may be a lot less than MPEG-4, but it's almost identical to the pricing already announced by realnetworks for their proprietary audio and video codecs.

    What's sauce for the goose is sauce for the gander and who was screamig about Real's pricing? I can't see a proprietary solution effectively competing with MPEG in the consumer market, so it's probably the only way they can make headway.

    Simon Hibbs

  34. This worked so well for Netscape... by TheConfusedOne · · Score: 5, Insightful

    1) Drop the license rate.
    MS called it "cutting off their air supply" if I recall correctly.
    2) Open your codec completely
    Then how can you get any license revenue from it?
    3) Make a better product
    It was widely regarded that the versions of NS were far superior to IE up to 4.0 (and there it's a debate).

    The foul is something called dumping. The practice of below cost in an effort to drive competitors out of the market.

    Now whether MS was dumping or MPEG-LA was gouging is something to be decided by the courts.

    --
    --- I wish I could hear the soundtrack to my life. That way I'd know when to duck.
    1. Re:This worked so well for Netscape... by TheConfusedOne · · Score: 3, Insightful

      First, your gas analogy is a trifle flawed. Comparison shopping is a tried and true past time these days. (Just look at sites like fatwallet.com.) The problem comes if one gas station were to come into the market and sell for something like $.40 per gallon. (The actual amount is arbitrary, as long as it is below the actual cost of getting the gas to the station.) Obviously, no competitor could reasonably keep up with prices like this. (The only way to do that would be to have supplemental income from another product/line covering these losses.)

      I have made absolutely no comments on the merits of the MPEG group's claims. I was merely pointing out that the collection of "this is how it works in the free market", "what's the matter, can't compete?", and "make a better product" retorts that I've seen here conveniently ignore the ramifications of actions by companies.

      The fact that I chose to do this using historical evidence of previous behavior from the company being accused in this case should give everyone a little more pause for thought.

      --
      --- I wish I could hear the soundtrack to my life. That way I'd know when to duck.
  35. Re:Unfair? by Waffle+Iron · · Score: 5, Insightful
    Can the MPEG Group COMPETE or not price-wise?

    Of course not. Nobody who doesn't have a $40 Billion war chest and a direct distribution back door hook (Tools->Windows Update) into 95% of the world's computers could possibly compete.

    That's why we have laws that are theoretically supposed to prevent this kind of market abuse.

  36. Re:Warped Logic? by praedor · · Score: 4, Interesting

    While I agree with you in principle, in practice it doesn't hold wrt M$. Why? Because M$ IS a court-recognized illegal monopoly violating just about every anti-trust law in existence then and now. Monopolists get to live by different regulations than others, particularly convicted monopolists. The problem here is that MPEG-4 really cannot compete. M$ has such a huge cash reserve and cash flow that even if MPEG-4 matches M$ price on WMP, M$ can still go lower, even to 0 cost for as long as it takes to kill MPEG-4.


    While MPEG-4 should drop its price as Apple suggests, M$ cannot be left to run as they wish because of their proven illegal activities. They WILL go to 0 pricing if anyone tries to compete (MPEG-4) on price. M$ can afford it for a lot longer than any (even better) innovators or software producers.


    That isn't the market in action as it is supposed to work and is envisioned by la-la land capitalism apologists, that is abuse of monopoly position and leveraging monopoly in one area to gain monopoly in another. Illegal.

    --
    In Bushworld, they struggle to keep church and state separate in Iraq as they increasingly merge the two in America.
  37. There *is* an alternative - XVID by WD · · Score: 5, Insightful

    Of course, what is really needed is a third choice, a totally Free Software media codec solution that's competitive with both Windows Media and MPEG 4

    There is.... It's called XVID

    1. Re:There *is* an alternative - XVID by mcrbids · · Score: 5, Interesting

      From their website...

      "XviD is an ISO MPEG-4 compliant video codec. "

      MPEG4 is a framework for video codecs - not an algorithm in its own right.

      With MPEG4 video codecs (COmpression/DECompression algorithms) are handled "plugin" style, much like the plugins to WinAmp or XMMS.

      Using XviD would still require you to use the MPEG4 video framework, and thus you are still choosing between WM or MPEG4!

      -Ben

      --
      I have no problem with your religion until you decide it's reason to deprive others of the truth.
  38. No, you have it backwards by TheConfusedOne · · Score: 3, Insightful

    This would be like Shur-Fine Brand Mac and Cheese protesting Kraft for selling for 50% less. The issue would be if Shur-Fine could prove that Kraft's selling price is actually below the cost.

    There is a huge difference between arguing about premium priced products versus below-cost products. MPEG-LA would have to prove that MS is actually selling their codec below cost.

    BTW, you don't have a right to charge whatever you want in the US. There are anti-gouging and anti-dumping laws that keep things in check.

    --
    --- I wish I could hear the soundtrack to my life. That way I'd know when to duck.
  39. Re:Just do what I do by benwaggoner · · Score: 4, Insightful

    Computer playback is a relatively minor aspect of MPEG-4. MPEG-4 projects are in progress on integrating playback in everything from replacing the GSM codecs for audio transmission in cell phones, to HD DVD with red laser, to replacing MPEG-2 in set top boxes, to replacing Flash for interactive presentations.

    MPEG-4 is really meant to replace MPEG-1 and MPEG-2, not QuickTime, Real, and Windows Media. Of course, given those open standards (with HIGHER licensing fees) are responsible for probably 98% of all digital video watched worldwide, that's the real game. MPEG-1 and MPEG-2 are used in VideoCD, DVD, digital cable, etcetera.

    Windows Media 9 is incredibly good for computer-based authoring and playback, but is a Win32 only system right now. MPEG-4 already works on all kinds of devices.

  40. Re:OpenDivX? by benwaggoner · · Score: 3, Informative

    No, DivX Networks pays their licensing fee to MPEG-LA. If you write an app that uses their codec, you don't have to pay an additional fee for the video codec.

  41. Re:yet another stupid anti-microsoft thread. by cant_get_a_good_nick · · Score: 5, Informative

    Does anyone remember that browsers didn't use to be free until Internet Explorer came along ?
    Netscape was de-facto free well before IE came along. Early on, they figured that they needed to get the browser out to everybody to make it THE platform. Anyone that actually paid for it, well that was found money. They really wanted to make money from servers, bu Apache and IIS killed them on this.

  42. well, ain't that just too bad by g4dget · · Score: 3, Insightful
    Microsoft's media formats are not documented, hence they are less valuable. That's why they charge less. If the MPEG-4 folks think that they can't compete, they should lower their licensing fees. It is really an outrage anyway that MPEG-4 requires licensing fees for its implementations; it's difficult to see what profoundly new ideas are represented by its standards body.

    What we have here is two greedy organizations battling it out. If we want to avoid getting dragged into this, we really do need open video standards.

  43. Re:How about something like Ogg Theora? by FooBarWidget · · Score: 3, Insightful

    Open source != open standard.

    An open source codec that implements an open standard without licensing fees, now that would be sweet...

  44. MS Has Seen the Error of It's Ways by alteran · · Score: 5, Funny

    Microsoft's spokesman:

    "Lowering and removing licensing barriers is not only great for the consumer electronics and software industries, but also offers consumers the benefits of better quality video at smaller file sizes," said Michael Aldridge, lead product manager for Windows Digital Media division at Microsoft.

    I don't think I have anything to add to this except a smiley. ;-)

    --
    Who is RTFM and when will he help me with Unix?
  45. Doesn't WMV Violate Said Patents? by Xesdeeni · · Score: 3, Interesting

    As I understand it, Microsoft's CODECs are heavily based on MPEG4. Aren't they voilating the patents already at this point?

    As for MPEG-LA and the rest of the "standards comittee." There should be absolutely no charge for "standards" that are issued by a "standard comittee," unless that "standard comittee" actually provides something (software, hardware, etc.). Otherwise, the whole thing is a thinly veiled process to come up with ideas and then profit from someone else's actual work.

    At the point where you label it "standard" and push everyone to adopt it for "compatibility," you should lose the right to charge for the idea.

    Xesdeeni

  46. I'd love a free software option.... by DesScorp · · Score: 5, Funny

    But having to say "gnu/mpeg" all the time would be annoying as hell....

    --
    Life is hard, and the world is cruel
  47. Determining Price? by Ringwraith · · Score: 5, Insightful

    So what would be a fair price? This does seem to be a little suspicious -- the very low price -- but how much is something like that worth? For that matter, how much is any piece of software worth. I never understood those people who were trying to get money back from MSFT for overpricing Office. I mean, how can you even determine what the price is for something like that? Isn't it whatever the market can bear?

    --
    -- Hobbits suck!
  48. MPEG-4 Fees by szcx · · Score: 3, Insightful
    This isn't about Microsoft charging half as much, it's about the outrageous fees MPEG LA are asking for.

    Under the plan, licensees would pay 25 cents each for MPEG-4 products such as decoders and encoders, with fees capped at $1 million a year for each licensee. It also suggests charging a per-minute rate, with no cap.

    Anger meets MPEG-4 licensing scheme

    Companies fear costly MPEG-4 licenses

    Apple backs MPEG-4 despite fee dispute

    MPEG LA claim that Microsoft is blocking progress? As my dear old grandmother used to say, bitch please.

  49. Re:Free implementation? by Fnkmaster · · Score: 5, Insightful
    Yes. Patent license fees. The standard is completely "open" in the sense that you can read full and complete specs and probably even get your hands on a reference implementation without cost. Of course, to distribute any product using the MPEG-4 standard, whether distributed for free or for charge, requires licensing a patent bundle from the MPEG consortium, patents which were filed by the members of the MPEG consortium.


    This is RAND licensing, folks. The same fine mess the W3C wants to get into. It hinders adoption, plain and simple, and locks out the Free Software community. I don't mind so much if companies want to keep intellectual property to themselves, but don't go around claiming it's a fucking "standard" if I can't implement it without paying you a fortune for the right to do so.

  50. Better products at better prices? From MS to OSS by einhverfr · · Score: 3, Insightful

    Has Microsoft ever, in its entire history, made a better product than the competition, sold it for a better price, and made a profit doing so? I'm not trolling; I'm genuinely curious to know if this has ever happened.

    yes and no--

    What Microsoft has generally done through the DOS and Windows market has been to commoditize the hardware market and have a large volume, low cost model (compare the cost of a PC with Windows to a Mac). This has not really resulted in a better product, but it has really resulted in a better price. This in turn has helped to lead to:
    1) the near ubiquity of personal computing and
    2) tremendous profits for Microsoft.

    Unfortunately they have also been extremely anti-competitive towards competitors, such as Digital Research (which did produce a better product-- DR-DOS), and quasi-competitors such as Netscape (whose ubiquity was threatening Microsft's control on the OS). I suspect that this latest spat with MPEG-4 vs WMA9 is the same sort of pattern.

    The fundamental problem for Microsoft though is that unlike the telephone companies, there isn't a large physical infrastructure that they control, and unlike the power companies and LATA-based telecoms, there is no natural division of any infrastructure that they can control, so this monopoly is not natural. Controlling formats is how they try to make this up.

    There are two problems which make the Microsoft monopoly impossible to maintian in my opinion. The first is Moor's Law, which is resulting in longer lifespans for computers as the computers are now powerful enough to meet business needs for a longer period of time. This results in fewer sales of Microsoft OS's because the upgrade cycle is lengthened. Why do you think they are pushing subscription licensing?

    The other is a more subtle problem. The growth of the internet has made it more possible to effectively collaberate on large software development projects between companies, and with developers across the world. This has made developments like OpenOffice, GNOME, KDE, and Linux possible, and it is in part due to the ubiquity of personal computing which has been one of the hallmarks of Microsoft's success. Open Source software has a lower cost model than Microsoft, and is able hence to win at Microsoft's own game. I am sure that a video codec is probably in the works to compete with WMA and MPEG-4. In the end, I am confident that, except for niche markets, that open source software (and similar systems) will eventually take over most markets.

    --

    LedgerSMB: Open source Accounting/ERP