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MPEG LA Extends H.264 Royalty-Free Period

Sir Homer writes "The MPEG LA has extended their royalty-free license (PDF) for 'Internet Video that is free to end users' until the end of 2016. This means webmasters who are registered MPEG LA licensees will not have to pay a royalty to stream H.264 video for the next six years. However the last patent in the H.264 portfolio expires in 2028, and the MPEG LA has not released what fees, if any, it will charge webmasters after this 'free trial' period is over."

32 of 260 comments (clear)

  1. Re:From TFS by olsmeister · · Score: 4, Informative

    By 2016 would be better.

  2. Data transfer? by FlyingBishop · · Score: 3, Interesting

    How does a patent license allow you to charge for transmitting data over the Internet? I get that the encoder requires a patent license, and the decoder requires a patent license, but sending an encoded file over the Internet? That's just absurd.

    1. Re:Data transfer? by sakdoctor · · Score: 5, Insightful

      Software patents? That's just absurd.

    2. Re:Data transfer? by Looce · · Score: 4, Informative

      How does a patent license allow you to charge for transmitting data over the Internet?

      Simple: it doesn't. However, it's a good measure of how much revenue MPEG LA expects you to be bringing in from your use of their standards, and as such is a nice way to scale up licensing fees according to your revenue.

      Think of it as a way of implementing this rule: You give us X % of the revenue you bring in from your use of our standard, and in exchange, you can use our standard. If the main use of your company is to deliver solutions based on our standard, this will be X % of your revenue. If you only make incidental use of our standard, your license is going to cost you lower.

      (And, of course, if you find something else that's good enough for your purposes and is free or costs less than our standard, you're free to use it.)

    3. Re:Data transfer? by BZ · · Score: 4, Informative

      The H.264 patents are method patents, not software patents.

    4. Re:Data transfer? by BZ · · Score: 3, Insightful

      Well, hold on. How is performing a method using wires carrying electrons to carry a digital signal different from performing a method using wires carrying electrons to carry an analogue signal (e.g. an FM radio receiver)?

      Should a mechanical device that performs a task be patentable but an integrated circuit that peforms the same task not be patentable?

      But in any case, the point is that the patents involved have been granted in all sorts of jurisdictions that don't allow "software" patents. This is bad from the point of view of open-source projects that want to use H.264, for sure. But it seems to me that the fundamental idea of patenting the methods used in H.264 is sound, assuming the idea of patents is sound at all. This last is up for debate, of course.

    5. Re:Data transfer? by BZ · · Score: 3, Interesting

      > In the EU if i make a hardware player, then yes i need a license for H.264

      See, the thing is.. what makes a hardware player? Is an FPGA programmed to decode H.264 a "hardware player"? What about an FPGA not thus programmed that comes with the software to so program it?

      I'm not quite seeing how one can draw a legal distinction here given that I can't even draw a _technical_ distinction.

  3. Nice by jvkjvk · · Score: 4, Insightful

    What a charming business model.

    Oh well, I guess webmasters could have always used something else, right?

    It's particularly nice that web masters are giving billing information 6 years early, so the company doesn't have to do much to track down the first round of suck^H^H^H^H customers to bill them for use.

    There's nothing like getting your IP embedded deeply into everyones processes (with their complete acknowledgement of that fact) and then seeking rent against the cost of changing it.

    I would expect that many companies don't have migration plans in place, I don't know, not my business.

    Regards.

    1. Re:Nice by TheRaven64 · · Score: 4, Interesting

      Six years? Six years is a very long time in CODEC evolution. Six years makes computers sixteen times faster. Network connections will be much faster. By 2016, I doubt there'll be many computers around that can't play back VC-2 (based on Dirac, patent free) in use and VC-2 hardware acceleration, which is just starting to be deployed, will be much more widespread. Remember the CODECs we were using six years ago?

      MPEG-1 didn't last six years as a standard for Internet video. Neither did RealVideo. Neither did Sorenson (in QuickTime or Flash containers). I'd be surprised if H.264 does.

      --
      I am TheRaven on Soylent News
    2. Re:Nice by slim · · Score: 5, Insightful

      In 6 years time, there'll be an awful lot of iPhones/iPads (and their descendants) in the wild.

      Expect H.264, and maybe some other patent-encumbered standards, to be the only video format a web site can use in order to be viewed on these devices.

      The options for video websites in 2016? Pay up, or abandon iPhone/iPad users. Plus who knows how many other closed platforms.

    3. Re:Nice by NNKK · · Score: 3, Informative

      You're a bit confused. HTML 5 is a markup language, not a codec. YouTube's HTML 5 site is still in H.264, it's just not using Flash to play it.

    4. Re:Nice by slim · · Score: 3, Informative

      Why would they?

      Apple will be raking in the royalties when MPEG LA (of whom they are members) start charging.

    5. Re:Nice by nxtw · · Score: 4, Informative

      The options for video websites in 2016? Pay up, or abandon iPhone/iPad users. Plus who knows how many other closed platforms.

      It's much more than just Apple's portable devices; they just happened to include H.264 first. H.264 decoders exist in:

      • all Blu-ray players
      • many new PCs, including just about all with NVIDIA or ATI GPUs and many Intel GPUs
      • nearly all HD satellite receivers, and many countries' terrestrial HD receivers (Europe)
      • IPTV systems
      • portable media players / cell phones with video players, including Android and BlackBerry devices
      • videoconference systems
    6. Re:Nice by slim · · Score: 3, Informative

      I was thinking that maybe the stuff posted to Google Video was encoded in Theora and it gets cross-posted to YouTube, while the stuff posted directly to YouTube gets encoded in H.264, but thats just a guess

      Don't guess. In HTML5:

      To support Safari, you have to use H.264 (OK, you can add Theora support to Quicktime, but let's assume very few users do this, and nobody wants to be the arsehole site that forces them to do so)
      To support Mobile Safari, you have to use H.264
      To support Firefox, you have to use Theora. (hence YouTube currently doesn't support HTML5 for Firefox)
      Chrome handles both formats.
      Opera: definitely handles Theora, not sure about H.264

      To be viewable in all HTML5 browsers, you're going to have to encode twice. The Theora encoding/streaming is going to be free. The H.264 encoding/streaming is going to be gratis until 2016. But once you've started, it's going to be awfully difficult to stop.

    7. Re:Nice by slim · · Score: 3, Informative

      Though some of those are relevant too, the important point about the Apple devices is not so much that they support H.264, but that they don't support anything else (at least, nothing else relevant to the Web)

      Outside of the Web, I care less. The Web is meant to be somewhere where creating/publishing is free to all (ignoring physical hosting costs).

    8. Re:Nice by nxtw · · Score: 3, Informative

      Though some of those are relevant too, the important point about the Apple devices is not so much that they support H.264, but that they don't support anything else (at least, nothing else relevant to the Web)

      Most of these devices have the same limitations as Apple devices; they decode a few things in hardware and nothing else:

      • all Blu-ray players: support MPEG-2, VC-1, and H.264
      • many new PCs, including just about all with NVIDIA or ATI GPUs and many Intel GPUs: have at best MPEG-2, VC-1, and H.264 hardware decoding support
      • nearly all HD satellite receivers, and many countries' terrestrial HD receivers (Europe): support MPEG-2 and H.264
      • IPTV systems: support H.264 usually
      • portable media players / cell phones with video players, including Android and BlackBerry devices: support H.263 and H.264
      • videoconference systems: support H.263 and H.264

      Apple devices use the same hardware decoders as other companies do.

  4. SS H.264 submarine patent by denis-The-menace · · Score: 5, Insightful

    2010: DIVE! DIVE!
    It's free, come and get it

    2016: Up periscope. Look there's someone using it without paying the $799/Stream licensing fee.
    -Arm MPEG LAwyer Torpedoes, FIRE!

    looks like a ambush in slow-motion.

    --
    Obama's legacy: (N)othing (S)ecure (A)nywhere and (T)error (S)imulation (A)dministration
  5. Re:From TFS by jeanph01 · · Score: 5, Informative
  6. A lot of fallout by BadAnalogyGuy · · Score: 5, Interesting

    I've been personally touched by MPEG LA's patent witch hunt. And not in the good way like Kathleen Fent does.

    My brother in law is the CEO of a small LCD monitor company that uses H.264 decoder chips. He buys these chips from a Taiwanese maker who in turn licenses the patent for H.264 decoding from MPEG LA.

    But MPEG LA has been spamming everyone and anyone vaguely connected to H.264 encoding or playback or even (in this case) sending files across the intarweb. He is expected to succeed if MPEG LA ever takes this to court since the patent is already licensed by the chip vendor and his agreement with them covers him under its indemnity clause.

    However this is a really plain-as-day example of how patent trolls are ruining business for everyone.

    1. Re:A lot of fallout by onefriedrice · · Score: 4, Insightful

      However this is a really plain-as-day example of how patent trolls are ruining business for everyone.

      Please don't dilute the term "patent troll." It has a specific meaning and certainly doesn't apply to a patent pool packager like MPEG-LA. Everybody adopted h.264 with full knowledge that it was covered by several patents. This is certainly not a case of some junk firm patenting prior art and suing everybody. Nobody coerced anyone into using h.264; it just happened to actually be a good codec, so it was adopted by the industry. Nor is it "ruining business for everyone," so I'm not even sure what your point is. Your own anecdotal evidence doesn't lead to this conclusion.

      Is it disappointing that we didn't have a comparable patent-free codec at the time when people started adopting h.264? Yeah, it's too bad. Unfortunately, no amount of sour grapes is going to change what happened.

      --
      This author takes full ownership and responsibility for the unpopular opinions outlined above.
  7. And even if sucked by DrYak · · Score: 5, Insightful

    You know, Theora video doesn't suck.

    And even if it sucked, that wouldn't matter anyway :
    most of video today consist of short snips on social websites of dancing cats filmed with a camera phone with crappy sensors and low quality MJPEG compression.

    Arguing that Theora would need more bits to achieve the same quality as other codec is akin to arguing that Youtube should spend more bits to be better faithful to all the compression artifacts.
    Theora opponents say that, for the same bits bandwidth, Theora video is blurrier. I'm saying that this blur won't hide any critical detail. It will only blur out the noise from the camera phone's crappy sensor and from the MJPEG'S 50% compression. I personally *can* live without them, if it is what it takes to have a open free/libre standard.

    --
    "Sufficiently advanced satire is indistinguishable from reality." - [Tips: 1DrYakQDKCQ6y52z6QbnkxHXAocMZJE61o ]
    1. Re:And even if sucked by delt0r · · Score: 4, Insightful

      At the lower bit rate end of the spectrum Theora is not bad, and would be competitive if it had the same development effort that the "Open Source" H.264 codec encoders get. Personally I think both theora and h.264 look like complete crap at you tube bandwidths.

      However Theora is working. Its mere existence is forcing MPEG LA to address license concerns. If Theora wasn't around, we would even be having a serious "open codec" debate, we be asking how much is licensing html 5.0 going to cost.

      --
      If information wants to be free, why does my internet connection cost so much?
    2. Re:And even if sucked by TheRaven64 · · Score: 4, Insightful

      most of video today consist of short snips on social websites of dancing cats filmed with a camera phone with crappy sensors and low quality MJPEG compression.

      By volume, sure. By amount of time people spend watching? I'm not so sure. The two places I mainly stream videos from are iPlayer and the company I rent DVDs from. Both of these have DVD-quality or better sources. YouTube comes a distant third after these two. These aren't short clips, they're episodes of TV shows or films, so 30 minutes is about the minimum length and 45 minutes to two hours is fairly common.

      --
      I am TheRaven on Soylent News
    3. Re:And even if sucked by Kohlrabi82 · · Score: 5, Interesting

      At the lower bit rate end of the spectrum Theora is not bad

      This is completely wrong, Theora is *escpecially* bad at low bitrates, I recently made a small comparison of Theora/Thusnelda and H264/x264 encoded 1080p videos, both looked very watchable at 4Mbit, but at 2Mbit problems for Theora/Thusnelda started, and at 1Mbit it was just plain awful. 2Mbit Theora/Thusnelda couldn't nearly reach H264/x264 quality at 1Mbit.

  8. documenting H.264 on http://en.swpat.org by H4x0r+Jim+Duggan · · Score: 5, Informative

        The MPEG patent thicket is a prime example of the real problem of software patents. If I want to write a video player, it has to play the formats that people encode videos in. The veto power of patents equates to the right to prohibit me, and everyone, from writing a functional video player. I think I already have pretty good info, but there's loads more of this story to tell. Help really appreciated in documenting this:

        swpat.org is a publicly editable wiki.

  9. Re:From TFS by alvinrod · · Score: 3, Insightful

    H.265 has an estimated release of 2012. We're just trading on MPEG LA standard for another, but they may offer free licensing of it for a while as well. Personally, I don't think they should be able to charge content providers squat. They can sell users an encoder and charge for decoders in products, but what anyone does after that shouldn't be any business of the MPEG LA.

  10. Tried & True business model... by PPalmgren · · Score: 4, Insightful

    The first hit is free.

  11. Noname brand player by DrYak · · Score: 5, Informative

    Yes, yes, I know there's $obscure_bad_interface_linux_based_device that supports Theora and Ogg.

    Go to the nearest electric/computer parts shop.
    Go to the shelf where all the multimedia player/harddisk enclosure are. You know : black box, you buy one, optionally slap a harddrive into it, optionally plug an ethernet cable and put it under the TV set (Kiss, Tvix, etc.).

    Chance are :
    - almost all of them will run some (hidden and un-advertised) Linux kernel under the hood.
    - almost all of them will support Ogg Vorbis and FLAC (not always advertised)
    - a huge proportion can do software Theora decoding (Theora is an older and much simplier codec. It requires less resources than H264 and can be done in software or DSP/SIMD assisted software). It's not always advertised, it might only come in a firmware upgrade. But lot's have it.
    - not all of them will have painfully ugly interfaces

    So the situation is a bit more easy than "there's one single model which plays it". Lots of asian noname devices manufacturer are implementing it, because it comes for free and because they can thus add an additional bullet point to the feature list.

    Want hardware support ?
    - There exist open theora core.

    Don't want to make a custom chip ?
    - There also exist a GPGPU implementation.
    Given that ARM and both PowerVR (maker of the GPU core on the hyper-popular OMAP chipsets) and nVidia (maker of the GPU core on the upcoming Tegra) are members of the OpenCL committee, you can expect that hardware accelerated OpenCL-written video codecs will be the solution for lots of future devices.

    The situations is similar as with Ogg Vorbis a few years before :
    - it's doable.
    - big brand doesn't do it, yet. because their lasy.
    - noname brand are starting to pick it up. after a couple of years it will have a huge market share among the brandless device, to the point that anything except Apple's device can play it.

    --
    "Sufficiently advanced satire is indistinguishable from reality." - [Tips: 1DrYakQDKCQ6y52z6QbnkxHXAocMZJE61o ]
    1. Re:Noname brand player by node+3 · · Score: 3, Informative

      Yes, maybe some of them support Theora. But *ALL* of them support h.264. And this completely ignores devices that use batteries. Hardware h.264 wins hands down in this regard.

  12. HTML5 is a dangerous "standard". by Anonymous Coward · · Score: 4, Interesting

    Yeah, but it's not encumbered by patents and other legal bullshit.

    Keep in mind that the HTML5 effort is much unlike the past HTML and XHTML standardization efforts. While the past efforts were driven by the W3C, HTML5 is a product of Google, Apple, Opera, Mozilla and other corporations, masquerading as a "community effort" just because their browsers are open source.

    With HTML5 being implemented to suit the needs of media distribution companies like Apple and Google (ie. YouTube) who have shown a propensity towards using DRM and undocumented formats, it's not surprising at all that a better and much more open video standard would be passed over in favor of proprietary, encumbered "alternatives".

    HTML5 will be one of the worst things to hit the Web in years. Sure, it'll let some folks create dinky demos using the canvas element, but it'll also be the platform through which the Googles and Apples of the Internet force DRM and proprietary media technology on basically everyone, thanks to it HTML5 being a "standard".

  13. Re:From TFS by discord5 · · Score: 3, Insightful

    You know, Theora video doesn't suck.

    <sarcasm>

    Oh boy oh boy, a comparison on xiph.org. I'm sure that this will be unbiased in any way. From the conclusion:

    The primary challenge is that all files at these rates will have problems, so the reviewer is often forced to decide which of two entirely distinct flaws is worse. Sometimes people come to different conclusions. That said, I believe that the Theora+Vorbis results are substantially better than the YouTube 327kbit/sec. Several other people have expressed the same view to me, and I expect you'll also reach the same conclusion.

    I'm totally convinced with such strong arguments. He's clearly gone his way to show flaws in both codecs, instead of just encoding a video with two codecs and letting the audience decide.

    </sarcasm>

  14. Re:From TFS by mcrbids · · Score: 3, Insightful

    Sorry to say this, but This just isn't true. Ogg/Theora holds up quite competitively against H.264, demonstrably, TODAY. I don't know why this FUD gets spread around, but having the Internet move to H.264 as a "standard" is akin to shooting ourselves in the collective foot.

    Ogg/Theora is here today, it's competitive with H.264, and isn't encumbered like H.264. The extension of "free" is just MPG group trying to submarine it into widespread use before they come in with terms. I swear, sometimes, we all live with the battered wife "Stockholm" syndrome. We've seen this before, and we're about to get it again.

    --
    I have no problem with your religion until you decide it's reason to deprive others of the truth.