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Nero Files Antitrust Complaint Against MPEG-LA

hkmwbz writes "German technology company Nero AG has filed an antitrust complaint against the MPEG-LA, the company that manages the H.264 patent pool. Nero claims that the MPEG-LA has violated the law and achieved and abused 100% market share, by, among other things, using 'independent experts' that weren't independent after all, not weeding out non-essential patents from the pool (in fact, it has grown from the original 53 to more than 1,000), and retroactively changing previously-agreed-on license terms."

19 of 247 comments (clear)

  1. MPEG_LA Isn't the devil by Useful+Wheat · · Score: 3, Informative

    Although I disagree with most of what that company does, their MPEG licensing fee is on the order of $2 per manufactured device to use their technology. This isn't really extortion. HDMI is 4 cents per device, but you're required to maintain a $10,000 license fee on top of that. I think gross abuse would be more on the order of $50/device.

    Either way, I support the free and open standard provided by displayport, which dispatches with the fees.

    1. Re:MPEG_LA Isn't the devil by Anonymous Coward · · Score: 5, Informative

      MPEG_LA's official stance is that nobody can create a codec for compressed video of any sort without violating at least one of their patents.

    2. Re:MPEG_LA Isn't the devil by tepples · · Score: 4, Informative

      The problem is principle, even if I use totally clean-room reverse-engineering without even taking one look at their patents, I still am guilty of patent violations, how?

      Among copyright, patent, and trademark, only copyright cares about the pedigree of any copy. Patents and trademarks can be infringed whether you have had any contact with covered goods or not.

    3. Re:MPEG_LA Isn't the devil by EyelessFade · · Score: 3, Informative

      well no, not yet anyways. But if you make a shortfilm with your camera and decide to sell it, then you have to pay up big time.

    4. Re:MPEG_LA Isn't the devil by DrSkwid · · Score: 5, Informative

      You might think differently if you got the manual your $8000 Pro HD camera out and read the manual

      http://www.facebook.com/photo.php?pid=584693&l=d37e6ecc2a&id=1429834573

      and then once you got that sorted out you read the manual to your $999 copy of Final Cut Pro

      http://www.facebook.com/photo.php?pid=584692&l=a8a46fa560&id=1429834573

      MPEG-LA is a virus

      --
      There are places where the networks are not touching,and there are places where they are-Boeing's Lori Gunter
    5. Re:MPEG_LA Isn't the devil by JAlexoi · · Score: 2, Informative

      Wow, there! Patents protect exactly against reverse-engineering, that is the whole idea behind patents. Copyright does not.

    6. Re:MPEG_LA Isn't the devil by westlake · · Score: 4, Informative

      You might think differently if you got the manual your $8000 Pro HD camera out and read the manual

      Your camera shipped with the generic end-user consumer license.

      Your costs for MPEG 4 distribution look like this:

      Shorts 12 minutes and under -

      $0

      Retail sales by title -

      The lower of 2% of the price paid to the Licensee (on first arms length sale of the video) or $0.02 per title.

      If you aren't grossing $150K+ in sales they have no interest in you whatever.

      Subscription sales [The Geek's Strip Club Channel or DVD of the Month] -

      100,000 subscribers or less - $0/yr.
      100,000-250,000 - $25,000/yr
      250,000-500,000 - $50,000/yr
      500,000=1 million -$100,000 - $50,000.
      Over 1 Million - $100,000/yr

      Free TV Broadcast -

      1-Time $2,500 fee for each AVC encoder
      OR
      Annual Fee For Markets Of 100,000 and Over - Starting at $2,500/yr

      Internet -

      End user does not pay by title or subscription - $0/yr [May in the future rise to the equivalent of Free TV Broadcast]

      Enterprise Cap [Commonly owned legal entities] -

      $5 million/yr

      That is the real cost of H.264 licensing to a service provider the size of Disney or Google. Which means that production, storage and distribution of VP8 video is going to have to be mighty damn cheap to be competitive. SUMMARY OF AVC/H.264 LICENSE TERMS

  2. Re:I didn't know Nero AG had time for this by MBGMorden · · Score: 4, Informative

    They seemed so busy turning their superior burning tool into another bloated intrusive dog.

    There are other completely free products that have matched Nero's (former) minimalist approach. CDBurnerXP is great on Windows. Brasero works great on Linux. On OS X, Burn is not quite as much my style, but it's simple and get it's job done.

    Essentially, Nero got priced out of the "dirt simple I just wanna burn a damned CD" market. Bloatware is all that's left.

    --
    "People who think they know everything are very annoying to those of us who do."-Mark Twain
  3. Re:I didn't know Nero AG had time for this by theArtificial · · Score: 4, Informative

    Another worthy Windows mention is InfraRecorder and it's opensource to boot.

    I don't have any affiliation with this project.

    --
    Man blir trött av att gå och göra ingenting.
  4. Non-infringing video by crow · · Score: 4, Informative

    Well, you probably would have trouble getting a modern compression system that doesn't infringe on one or more of their patents, but you can use an older video format.

    Consider that DVD was developed in 1995, so the base MPEG-2 patents expire within 5 years, if not earlier.

    The draft MPEG-1 standard was out in 1990, so a codec based on MPEG-1 technology should be free of patent issues.

    H.264 dates from 2003, so we probably have another 13 years there.

    Ultimately, it may take a legal battle with Google to invalidate or narrow some of the H.264 patents such that VP8 or something similar can compete patent-free.

    1. Re:Non-infringing video by reebmmm · · Score: 4, Informative

      Consider that DVD was developed in 1995, so the base MPEG-2 patents expire within 5 years, if not earlier.

      Patents last 28 years (in the US at least), that puppy has another 13 years or so on it.

      Huh? US Patents don't last 28 years. New patents have a term of 20 years from the earliest filing date. Patents filed before June 8, 1995 have a term that is the longer of (i) 20 years from the earliest filing date; or (ii) 17 years from the date of issue.

  5. What timing! by Anonymous Coward · · Score: 3, Informative

    This couldn't have come at a worse time for MPEG-LA. They're just now preparing for an epic struggle with Google over VP8 and Nero comes from behind and sticks a dagger in their spine.

  6. Re:About time. by yincrash · · Score: 5, Informative

    FTFA, Nero claims that MPEG-LA has not abided by the license and changed it's policies against what there was previously written agreement of.

  7. Re:Citation, please? by Kalriath · · Score: 4, Informative

    Actually, they don't indemnify at all. I've seen stories that apparently they are forming a patent pool for Theora and WebM/VP8, but the only place I can't find any confirmation of that is from MPEG LA themselves. The "official stance" referred to by the AC was mentioned in the story about them forming a VP8 pool, but said statement (and VP8 plan) doesn't exist on their site.

    And they sue. A lot.

    They are founding a patent pool for human gene patents though. That can't be evil at all.

    --
    For a site about things like basic rights, Slashdot users sure do like to censor "dissent".
  8. Re:I didn't know Nero AG had time for this by hairyfeet · · Score: 4, Informative

    Uuuuhhhh...You DO know that if all you want is the burner Nero will let you have it for free, yes? Or that if you want an even more simple interface there are great free choices such as IMGBurn which you can even install with a one click unattended installation thanks to Ninite that will install nearly all the major apps folks need/want, like FF,.NET/Flash/Silerlight/Java, even IM, AV, and Media Players, all in an interface so simple even your grandma can use it?

    So while the full Nero may not be YOUR cup of tea, there are enough folks buying it that Nero thinks it is the correct way to go for their customers, but they are still nice enough to offer the basic version for $0. And just because you think it is "bloated" doesn't mean the masses do. Just look at home pages, which working PC repair I can tell you the average Joe by a good 99 out of 100 have set to this instead of this because they actually LIKE it that way!

    --
    ACs don't waste your time replying, your posts are never seen by me.
  9. the NFL decision from the court by ciaran_o_riordan · · Score: 3, Informative

    Here's the Supreme Court's decision:

    http://www.supremecourt.gov/opinions/09pdf/08-661.pdf

  10. Re:The supreme court would say MPeg LA is illegal by AK+Marc · · Score: 5, Informative

    The supreme court just ruled today that the NFL can't license the team trademarks collectively.

    No. They ruled that the Sherman Antitrust Act would apply for collective licenses. They could still collectively license trademarks without a problem. The specific issue was that the NFL argued they didn't need to worry about antitrust issues while issuing an exclusive collective contract. They may still be able to do exactly what they've already done, and there was no ruling banning collective licensing at all (and nothing that could even be construed to hold back any collective agreement of any kind).

    But if you have a collection of competitors agreeing to to work together, antitrust issues apply. It may have some impact on this case if it's found that the cross licensing is an antitrust issue, but there's nothing that would prevent any group from collective licenses (presuming other laws not examined in this ruling aren't broken).

  11. Re:About time. by msclrhd · · Score: 5, Informative

    FTFA, Nero got a license from MPEG-LA saying that they didn't have to pay license fees for trial software. Now, MPEG-LA has changed their minds and has demanded payment retroactively for all the free trials Nero has provided before the change.

  12. Re:I didn't know Nero AG had time for this by MBGMorden · · Score: 2, Informative

    the problem is that in the "real" world corporations and the US Government do not allow free or open source software on their computers. It is all fine that you have free alternatives, but they won't be allowed on the machines due to administrative policies.

    I work for the US Government, and we run a ton of open source on various systems. Most other governments and most corporations do too (Apache - a FLOSS product, runs most of the Internet).

    Your statement is completely without merit.

    --
    "People who think they know everything are very annoying to those of us who do."-Mark Twain