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DOJ Anti-trust Investigation of MPEG-LA

thomst writes "The Wall Street Journal's Thomas Catan reports that the Department of Justice has launched an anti-trust investigation of MPEG-LA's purported efforts to prevent Google's VP8 codec from widespread adoption. According to the article, the California Stare Attorney General's office is also investigating MPEG-LA for possible restraint of trade practices."

149 comments

  1. In the immortal words of Nelson by Anonymous Coward · · Score: 0

    HaHa

  2. Patent Pools by Anonymous Coward · · Score: 0

    Anti-competitive? No way!

  3. Re:yea! by larry+bagina · · Score: 1

    This is the Google Department of Justice (beta). Unfortunately, they'll probably get bored in a couple months and move on to something shinier.

    --
    Do you even lift?

    These aren't the 'roids you're looking for.

  4. Re:yea! by Anonymous Coward · · Score: 0

    This one affects other corporations though, not us citizen scrubs, so its automatically higher importance.

  5. Re:yea! by Anonymous Coward · · Score: 0

    Of all the abusive monopolies they choose to go after, this is who they pick?

    It's hard to think of a more clear cut example of supposed business rivals getting together to agree and enforce a common price. To top that off with efforts to shoot down VP8 really takes the biscuit. Most cartels are more subtle than this (De Beers and OPEC excepted, but they're beyond the DOJ's reach).

  6. Re:yea! by miffo.swe · · Score: 2

    I agree, in this case they should have gone straight for the root cause, Microsoft and Apple.

    Their attempt at strangling VP8 by trying to build a pool of patent to sue the one owning it are by far the worst case of anticompetitive behavior i have seen since the browser wars.

    --
    HTTP/1.1 400
  7. Settlers of Catan by hoggoth · · Score: 5, Funny

    When the parties come to a quiet settlement out of the public eye, I can't wait for Thomas Catan's headline: "Settlers of Catan"

    --
    - For the complete works of Shakespeare: cat /dev/random (may take some time)
  8. Re:yea! by AliasMarlowe · · Score: 2

    Of all the abusive monopolies they choose to go after, this is who they pick?

    They've got to start small and work their way up (one can hope). After all, they're really out of practice - the big cartels and abusive monpopolies would eat the DoJ for breakfast.

    --
    Those who can make you believe absurdities can make you commit atrocities. - Voltaire
  9. So, let me get this straight... by VGPowerlord · · Score: 1

    The US Department of Justice is going after the International Oraganisation for Standardization (ISO)'s Moving Picture Experts Group (MPEG) Licensing Agency (LA)?

    Am I the only person who sees a problem here?

    --
    GLaDOS for President 2016! "Well here we are again. It's always such a pleasure." -- GLaDOS, 2011
    1. Re:So, let me get this straight... by Plombo · · Score: 5, Informative

      The MPEG-LA is not actually affiliated with MPEG or ISO.

    2. Re:So, let me get this straight... by drinkypoo · · Score: 1

      The MPEG-LA is not actually affiliated with MPEG or ISO.

      Well, that's what they say. It's easy to get a list of MPEG-LA members but not so easy for MPEG. How many MPEG-LA members aren't members of the MPEG committee?

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    3. Re:So, let me get this straight... by airfoobar · · Score: 4, Insightful

      The MPEG LA is *NOT* affiliated with the MPEG committee. They are a separate *COMPANY* that puts together patent pools for MPEG standards -- basically they are a bunch of parasite lawyers living off software patents, at least in my opinion.

    4. Re:So, let me get this straight... by mbone · · Score: 1

      I actually don't think that there is that much connection.

      I certainly know of MPEG participants who do not approve of MPEG-LA, and there are certainly also patents that the MPEG has to deal with, whether they want to or not.

    5. Re:So, let me get this straight... by drinkypoo · · Score: 1

      I certainly know of MPEG participants who do not approve of MPEG-LA,

      That is unsurprising given that MPEG is larger than MPEG-LA (in terms of number of members) but absent a list of MPEG members it's difficult to make any kind of real comparison.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    6. Re:So, let me get this straight... by Compaqt · · Score: 1

      LA == 'Licensing Agency'?

      I always vaguely thought of Los Angeles (Hollyood) when I read that.

      --
      I'm not a lawyer, but I play one on the Internet. Blog
    7. Re:So, let me get this straight... by DarkOx · · Score: 2

      Probably not but you should be.

      At least where hightech is concerned this so called standards organizations have devolved into little more of substance than East Texan Patent trolls, they just hide behind their names and history for the sake of keeping a better face on it.

      All MPEG-LA is really about is deciding who gets to play and who has to pay based on if you are lucky enough to be 1, a Mega Multinational, 2 part of their chosen boys club, and 3 friendly to their business interests. These organizations are not about facilitation of standards and interoperation but instread about collusion. They decide whats in the market place and how its offered, At least until another elephant like Goolge gets upset enough about it. It has to be someone like Google to even if it is "the people vs" becuase no AT-Gen would pay attention if some small opensource project came calling.

      --
      Repeal the 17th Amendment TODAY! Also Please Read http://www.gnu.org/philosophy/right-to-read.html
    8. Re:So, let me get this straight... by hkmwbz · · Score: 1

      The MPEG-LA is not a standards group, and not affiliated with the MPEG. It is an industry cartel which is now trying to gain control over its main competitor (VP8) through the use of patent threats, and by setting up a patent pool for the competing technology.

      --
      Clever signature text goes here.
  10. Re:yea! by Anonymous Coward · · Score: 0

    I agree, in this case they should have gone straight for the root cause, Microsoft and Apple.

    Their attempt at strangling VP8 by trying to build a pool of patent to sue the one owning it are by far the worst case of anticompetitive behavior i have seen since the browser wars.

    Bullshit. Neither company stands to make much money from their MPEG-LA patents. Nor do they stand to gain much from "lock-in," since they are, after all, blindly licensing away these patents in a pool.

  11. Re:yea! by drinkypoo · · Score: 2

    I agree, in this case they should have gone straight for the root cause, Microsoft and Apple.

    Microsoft and Apple are two of the largest members of the MPEG-LA. They are the two best-known by the public. Going after MPEG-LA very much is going after Microsoft and Apple, but it's also going after all the other criminals involved in this extortion racket at the same time. I consider that to be positive.

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  12. Software Patent Absurdity by Mystiq · · Score: 5, Insightful

    Now can someone in government put two and two together and see the absurd situation software patents has caused? VP8 is supposed to be patent-free but everyone on the H264 side is calling it patent-encumbered anyway. The mere existence of patent trolls should be reason enough to get rid of the idea. You should be able to patent implementations, not ideas.

    The point of software patents was to protect innovation. This should be a clear example that it is not, as VP8's adoption is supposedly slow because of the risk of violating other patents whose owners won't come out of the woodwork until VP8 has enough market share to make a lawsuit nicely profitable. The whole thing is patently ridiculous.

    The sheer amount of patent lawsuits and now that even Google and Apple are teaming up against a troll is very telling. Software patents are not serving their intended purpose and it is obvious because no one wants to adopt VP8 because of the unknown threat. This is the stifling of innovation and is not protecting the patents of the 10 companies that may own patents to VP8 because no one wants to use them so they just become dead weight. What good is an idea if it can't be used?

    Software is a fickle thing. Your idea may have also been invented by someone and you just didn't patent it. This is the problem with software patents. The patents themselves can be very vague and cover a whole host of ideas. If the patent office has to pass more patents just to get rid of a backlog, perhaps it isn't the fault of the filers but the fault of the law.

    1. Re:Software Patent Absurdity by Anonymous Coward · · Score: 1

      In theory software patents are quite specific. But you;re right. The situation is ridiculous. A video specification will be about 100-200 pages. A chunk of that is examples, contents pages, explanatory notes. Another chunk will cover material that was in previous versions of the standard since at least some of the basic technology from MPEG1 and 2 is duplicated. This is all no longer covered by a patent.

      So the remaining technology - all the innovations that make h264 more advanced than MPEG2 - account for over a thousand different "inventions".

    2. Re:Software Patent Absurdity by minorDistraction · · Score: 5, Insightful

      VP8 is not patent-free. Google has the patents, but it won't be charging money for it. If H264 wasn't covered by a bunch of expensive patents, VP8 would not be needed. People could put effort in improving H264 instead.

    3. Re:Software Patent Absurdity by Mystiq · · Score: 3, Informative

      Er, my intention was there, even if the wording wasn't. :) Replace "patent" with "royalty" where appropriate if you like.

    4. Re:Software Patent Absurdity by Anonymous Coward · · Score: 0

      >The sheer amount of patent lawsuits and now that even Google and Apple are teaming up against a troll is very telling

      I think you mean Google and Microsoft->http://tech.slashdot.org/story/11/03/03/187209/Microsoft-Google-Sue-Troll-Who-Sued-397-Companies

    5. Re:Software Patent Absurdity by Mystiq · · Score: 1

      Close enough.

    6. Re:Software Patent Absurdity by Anonymous Coward · · Score: 0

      Mod parent up, it was Microsoft, not Apple.

    7. Re:Software Patent Absurdity by Anonymous Coward · · Score: 0

      VP8 is being adopted. Watch next year's hardware list. Like H.264, VP8 is going in the ICs on the board. Companies like MS and Apple aren't adopting it because they're part of MPEG LA, not because they're concerned about patents.

    8. Re:Software Patent Absurdity by westlake · · Score: 1

      If H264 wasn't covered by a bunch of expensive patents, VP8 would not be needed. People could put effort in improving H264 instead.

      They are.

      HEVC (aka H.265) should be ready in about a year or two.

      Current indications are that the new standard could provide 2x better video compression performance (i.e. around half the bitrate for a similar quality level) at the expense of significantly higher computational complexity, compared with H.264/AVC.

      High Efficiency Video Coding / HEVC / H.265 : Beyond H.264

      HEVC like H.264 is not a exclusively - or even primarily - a "web codec." The target markets include next generation HDTVs and services like Netflix and OnLive gaming.

      Netflix doesn't need the PC.

      It doesn't need the browser.

      What it need is the content protection demanded by the major providers,

      What it needs is placement of its "app" on very tablet and smartphone, Internet-enabled HDTV, set top box, video game console, DVD and Blu-Ray player.

    9. Re:Software Patent Absurdity by burnin1965 · · Score: 2

      You should be able to patent implementations, not ideas.

      Unfortunately it is not as simple as that. The reason we have software patents is because lawyers were able to twist a series of patent cases into a questionable conclusion that says something like 'when this software idea is combined with the hardware of a computer it transforms the hardware into a new machine and therefore the software itself is patentable as part of the implementation.'

      There are a number of people who make a great deal of money ensuring this root conclusion stands and they extract huge sums of money from the market by utilizing this conclusion. If the tenuous link between a software idea / algorithm / design and the actual software implementation can be broken then the rest of the software patent mess will crumble.

      A software idea or design, even as a component of a machine, should be ruled as ineligible for patent protection because, as you state, it is basically an abstract idea that solves a problem and by allowing patent protection of the idea the path to advancement of useful arts and science is blocked because the idea covers all possible implementations. The argument that this will remove the incentive for innovation and invention will quickly come out but this argument is moot because software is covered by copyright so the implementation of an idea is still protected.

      The astounding absurdity in software patents is that the patent itself is not actually on the software. When you look at a software patent it doesn't show the software, it shows a very high level abstraction of the problem the software will solve or how it will solve the problem. Most machine patents include drawings of the actual machine implementation, a software patent never shows the actual software implementation because if they did that it would be redundant to copyright and would not prevent competition from alternate solutions to the same problem.

      Your idea may have also been invented by someone and you just didn't patent it. This is the problem with software patents. The patents themselves can be very vague and cover a whole host of ideas. If the patent office has to pass more patents just to get rid of a backlog, perhaps it isn't the fault of the filers but the fault of the law.

      While it may be valid to discuss the various issues surrounding software patents I would avoid focusing on them as the reason to eliminate software patents. The reason being that these people fighting to keep software patents will look at your arguments and see that you have a very strong point and a very weak point, they will immediately focus on the weak point and detract you and the argument away from a logical conclusion that would do away with the absurdity of software patents.

    10. Re:Software Patent Absurdity by phantomfive · · Score: 4, Insightful

      You should be able to patent implementations, not ideas.

      We already have protection for implementations, it's called copyright.

      Now can someone in government put two and two together and see the absurd situation software patents has caused? VP8 is supposed to be patent-free but everyone on the H264 side is calling it patent-encumbered anyway.

      I am personally opposed to software patents, especially for things like 1-click purchase, but you need to be able to see both sides of the issue. Look at it a different way:

      VP8 was developed over the course of 10 years by a company called On2 Technologies. They paid their programmers lots of money, and got lots of money from investors to do so, because they thought they could make a lot of money in return. And they did. In 2004, for example, Macromedia paid them lots of money to license their VP6 codec. Now, to be interoperable, you need to let other people know what the format is, so if it weren't for patents, Macromedia wouldn't have needed to pay them. They could have just rewritten the codec on their own and avoided licensing costs.

      If patents weren't around, On2 wouldn't have been able to get licensing fees. Thus they wouldn't have been able to make money, and they wouldn't have gotten funding to pay their programmers. It is arguably only because of patents that VP8 even exists today.

      See how it is? Patents aren't a clear evil. Life is nuanced and there are shades of grey.

      --
      "First they came for the slanderers and i said nothing."
    11. Re:Software Patent Absurdity by Lorien_the_first_one · · Score: 2

      There is nothing in life that says that investors should be guaranteed a return on their work via government intervention in the market. The problem is not the ethical notion that researchers and the investors who finance them should be rewarded for their work and risk taking. The problem, as you are well aware, is that software patents are patents on math.

      Besides, as you said, On2 made a lot of money on their patents. How much money did they make from implementation and support of the software they wrote? No one ever mentions that. The First Mover Advantage is a real advantage. Just ask McDonalds, AT&T and YouTube. As you have probably guessed, I'm against patents entirely. I haven't seen one single study which says that they encourage innovation or are a net benefit to society. As a matter of fact, there is a very recent, very interesting paper on the subject. You can check that out here.

      While you may find reason to disagree with the paper, it's a pretty accurate assessment of the patent law here in the States. To me, this is the best explanation in a short, concise essay that what is wrong with patents.

      --
      The diversity and expression of human opinion is essential to human survival.
    12. Re:Software Patent Absurdity by Anonymous Coward · · Score: 1

      The point of software patents was to protect innovation.

      No, the point of patents is not to protect anything. It's the method used to promote the progress of science and useful arts. People who think patents are there to protect anyone are abusing the system.

    13. Re:Software Patent Absurdity by melikamp · · Score: 1

      If patents weren't around, On2 wouldn't have been able to get licensing fees.

      That's right, and that's because On2, like anyone who tries to monopolize math, does not deserve our business. Without software patents, an open codec(s) would be developed just as well by a hardware alliance in collaboration with the FLOSS community and the cost would be passed on to consumers of hardware devices. The total development costs would be an order of magnitude smaller and no one would have a monopoly on using a class of mathematical functions. Where is the freaking downside? I could run your argument again, substituting "molesting children" for "software patents" and conclude that child molesters cannot make any money without legislation that would make it possible. What oh what are we going to do about THAT?

    14. Re:Software Patent Absurdity by phantomfive · · Score: 1

      Without software patents, an open codec(s) would be developed just as well by a hardware alliance in collaboration with the FLOSS community and the cost would be passed on to consumers of hardware devices

      And it would suck, like the open source codecs that are already in existence.

      --
      "First they came for the slanderers and i said nothing."
    15. Re:Software Patent Absurdity by phantomfive · · Score: 1

      I have no idea why you are against software patents. As far as I can tell, you don't like them because you like to use the efforts of other people's work for free. Meh.

      --
      "First they came for the slanderers and i said nothing."
    16. Re:Software Patent Absurdity by Lorien_the_first_one · · Score: 1

      You're kidding, right? If anything, it's the other way around. Many patentees are attempting to use the work of others by claiming infringement and seeking royalties or injunctive relief to stop other people from practicing the patents. The problem I have with patents is that they allow a patentee to tell me what I can or cannot do with my own property. That is hardly a free market idea.

      You might want to read up on Jefferson. Here is a relevant quote: "If nature has made any one thing less susceptible than all others of exclusive property, it is the action of the thinking power called an idea, which an individual may exclusively possess as long as he keeps it to himself; but the moment it is divulged, it forces itself into the possession of every one, and the receiver cannot dispossess himself of it."

      It seems such a shame that the life of the American economy has in part devolved into a fight over the ownership of ideas.

      --
      The diversity and expression of human opinion is essential to human survival.
    17. Re:Software Patent Absurdity by phantomfive · · Score: 1

      Do you have a reason to think that Jefferson saying something will somehow bolster your argument?

      --
      "First they came for the slanderers and i said nothing."
    18. Re:Software Patent Absurdity by Lorien_the_first_one · · Score: 1

      He makes sense to me. What else do you need?

      --
      The diversity and expression of human opinion is essential to human survival.
    19. Re:Software Patent Absurdity by phantomfive · · Score: 1

      If 'making sense' is all you're looking for, why not just say it yourself?

      --
      "First they came for the slanderers and i said nothing."
  13. Be still my heart ! by mbone · · Score: 0

    I thought that the DOJ anti-trust division had all been frozen in carbonite. Now, it appears that they are awake and may actually do some good. When they are done with this, there is a certain search engine they might want to look at...

    1. Re:Be still my heart ! by jd2112 · · Score: 1

      A certian G. Lucas, citing his patent 'A method for placing objects and persons in stasis by means of encasing in Carbonite' demanded payment for patent infringement and the un-freezing of 'unnecessary' government workers was required as part of the settlement.

      --
      Any insufficiently advanced magic is indistinguishable from technology.
    2. Re:Be still my heart ! by sargeUSMC · · Score: 1

      I thought that the DOJ anti-trust division had all been frozen in carbonite. Now, it appears that they are awake and may actually do some good. When they are done with this, there is a certain search engine they might want to look at...

      Don't worry - It'll get strung out till the new administration drops the case because it isn't business friendly.

  14. Re:yea! by Anonymous Coward · · Score: 1

    And if they truly believe that, their free to sue Google and/or all users of VP8 for patent infringement. What they're not allowed to do (and what spurred this investigation) is to spread FUD about patent infringement without filing any sort of lawsuit in and effort to prevent adoption of a competitors product without the requirement of actually proving infringement. Believe it or not, you probably don't know more about monopoly law than the DOJ.

  15. Re:yea! by Anonymous Coward · · Score: 0

    Listen, I've been around the block a few times, so to speak. I know that the DoJ is between a rock and a hard place when it comes to matters like investigating monopolies. The fact of the matter is, is that the American people like monopolies and huge conglomerates dominating their consumerist lives. Hell, many Americans would actually prefer these huge corporations and trusts to rule all aspects of their lives, from morning till night. When our lives revolve around feeding our minds with info-tainment and games and gossip, what matters most is that the supply of those things never runs out. The monopolies and conglomerates that are out there are a necessity, like it or not. We've entered a new era in human society, especially in the "Western", technologica world.

  16. Re:yea! by theaveng · · Score: 1

    >>>What they're not allowed to do (and what spurred this investigation) is to spread FUD about patent infringement

    Really???
    Which law prevent a corporation from doing that? Quote it to me.
    Please and thank you.

    --
    FOX NEWS.com should be BANNED from television and internet. Have the Congress take it over and give us Truespeak.
  17. Trolls vs. practicing entities by tepples · · Score: 1

    basically they are a bunch of parasite lawyers living off software patents

    But that still doesn't necessarily make them "trolls" in the sense of nonpracticing entities. A lot of MPEG-LA members sell copies of encoders that they have developed. I'd bet a lot of MPEG-LA members are also in MPEG itself.

    1. Re:Trolls vs. practicing entities by airfoobar · · Score: 2

      That said, trolls operate under a bunch of different business models and with a number of overlapping motivations, including the motivation of excluding or taxing small competitors who need to implement standards. Moreover, anyone who tries to create a patent pool that supposedly covers OGG, VP8 etc just as they are released as royalty-free totally deserves that description, if you ask me.

    2. Re:Trolls vs. practicing entities by peragrin · · Score: 3, Insightful

      No they are trolls, because every year they say how thankful we should be they decided not to charge us this year for the stuff they gave away for free last year.

      Next year they will say the same thing. They have said it the last 2 years now that I know of. Oddly enough 2 years ago was when Google started dealing with VP8, and actually opening up those codecs.

      Right now you have to pay to use H.264 every time you, encode, decode, stream, move, or look at the file. Only because MPEG-LA are such nice people they actually only charge you for encode, decode, and stream.

      If you think your not paying, then you might want to take a closer look someone is paying it for you then raising the cost of doing business along the way.

      --
      i thought once I was found, but it was only a dream.
    3. Re:Trolls vs. practicing entities by Anonymous Coward · · Score: 0

      Of course someone somewhere is paying for it. If you're not running an open source operating system with open source programs running on open source processors, you're fooling yourself. Somewhere, someone paid for your CPU licenses/patents, chipset licenses/patents, GPU licenses/patents, storage device licenses/patents, audio licenses/patents, the list goes on.

      The only thing this whole H.264 vs WebM mess is doing is putting more strength into Flash, because 99.9999999% of video services won't be hosting twice as many video files. Apple users are known to have paid for their hardware, Linux users get everything for free so there's no money to be made there. So it's H.264 files for devices that can play them and H.264 through Flash otherwise. In both cases, it's H.264 anyway.

  18. Patents were designed to be monopolistic by NicknamesAreStupid · · Score: 1

    The point is to give their holders a preference. True, it was intended for individuals who needs a while to ramp an idea up to a business, not multinational corporate conglomerates who house thousands like a weapons stockpile. Perhaps, the answer is that we do not afford corporations the same rights as individuals. The Supreme Court recently ruled to that effect.

    1. Re:Patents were designed to be monopolistic by Anonymous Coward · · Score: 0

      Perhaps... we limit patent NUMBERS.

      Let everyone have ONE patent.

      A corporate "person" may have ONE patent.

      Have a law forbidding shell companies for holding patents, the company must contain at least X workers making Y amount who work solely for that company (No sharing employees to cheat).

      Either lots of patents disappear or suddenly the unemployment problem gets a lot better.

      Arguably, how many novel inventions (if it's worth doing, it requires some effort) can one "person" work on at once?

      One person, one patent. (Til it expires, got another idea? Encourage a neighbor!)

  19. In Cohoots with the government by Curunir_wolf · · Score: 2

    I told you Google was working with the government! This just proves it.

    --- Glenn Beck

    --
    "Somebody has to do something. It's just incredibly pathetic it has to be us."
    --- Jerry Garcia
    1. Re:In Cohoots with the government by Mystiq · · Score: 1

      I sincerely hope you don't mean that. Glenn Beck is about as ridiculous as they come. He offers no discussion, only bait. He's like a 13 year old on a forum starting a flame war then watching everything burn while pouring more gasoline. There may be valid points in there but the amount of noise that comes with it makes it hard to find the signal.

    2. Re:In Cohoots with the government by Curunir_wolf · · Score: 2

      Meh. It was supposed to be funny. Looks like I failed miserably.

      --
      "Somebody has to do something. It's just incredibly pathetic it has to be us."
      --- Jerry Garcia
    3. Re:In Cohoots with the government by BJ_Covert_Action · · Score: 1

      I laughed.

      It just seems that as soon as the name Glenn Beck is mentioned on slashdot, some 'dotters shit their pants in an unholy crusade against him, without entertaining the notion that the whole thing may just be one finely done parody.

    4. Re:In Cohoots with the government by Anonymous Coward · · Score: 0

      It's because Glenn Beck is impossible to parody effectively. When everything he says is already so ridiculous, any parody pales in comparison to reality.

  20. Steve Jobs on video codecs and patents by Elbereth · · Score: 4, Insightful

    "All video codecs are covered by patents," Mr. Jobs wrote. "Unfortunately, just because something is open-source, it doesn't mean or guarantee that it doesn't infringe on others patents."

    This seems like a reasonable statement, at first, but then I wondered what makes video codecs so special. I mean, why single them out, when almost anything has at least the possibility of infringing on a patent? I think that's pretty much the point of having a patent pool, these days. If someone claims that you're infringing on their patents, you can search through your collection of thousands of patents, in order to find something that they are infringing upon.

    Now, I'm not necessarily an anarchist wanting to abolish intellectual property, but I do believe that patents have become an embarrassing travesty, thanks to the past fifteen or twenty years' worth of crappy patents (which are just now beginning to fall out of protection). When you can't even write an open video codec without industry insiders calling into question your very algorithms, there's something wrong, be it with the insiders (spreading FUD in order to kill the competition) or the laws (which have made competition impossible).

    Anyways, I'm sure a hundred other people will say the same thing, since this is Slashdot, and we looove to complain about intellectual property laws, so I'll add a little something extra: what I've thought about as a replacement for our current system. How's this sound?

    • First, let's upgrade the patent clerks to "patent engineers", because that's what they should be, with appropriate qualifications and salary. I'm sure we can find the funds to lure some qualified engineers away from big business, and, if we can't, we could always steal a few away from the Armed Forces. Sounds like a pretty comfy retirement for a knowledgeable engineer, to me.
    • Second, let's remove all the legalese and obfuscation from the applications. If it's not clear and concise, reject it. If it doesn't narrow down the scope to laser precision, reject it. If it sounds like a lawyer wrote it, rather than an engineer, reject it. The default action should generally be to reject, seeing as patent are supposed to be novel.
    • I was always told you couldn't patent an idea. Well, it seems as though you can... if it's implemented on the internet! Come on. That's stupid. I'm willing to compromise on algorithms, formulas, and other mathematical discoveries (though I dispute their status as inventions), in order to fight against patents that are even more offensive than algorithms, but they should be, again, so narrowly focused that you'd know you were infringing on someone's patent, rather than stumbling on it by accident. One doesn't accidentally re-implement LZW, MP3, or JPEG compression. On the other hand, everyone has, at one point, thought, "If I had a single click checkout button, that would make this whole process much easier." Bezos was simply enough of an asshole to go to the bother of patenting his idea. LZW? Patentable. One click checkout? Not patentable. As distasteful as I might find patenting algorithms, it does force people to stop patenting stupidity like Amazon's patent portfolio, which is composed of "good ideas", not machines or algorithms. Since patented algorithms are probably here to stay, we might as well use them to purge the even more offensive patents.
    • Patents should have a clear owner. No owner means no patent. If you make a good faith effort to contact the owner of a patent, with the intention of licensing it, then I'd say you've done all you can. Keeping your patent documentation up-to-date is your burden, not anyone else's.
    • Patents should be encouraged to have a short lifetime. The amount of protection offered should be inversely related to how much freedom is reserved by the patent holder. For example, a patent on a new type of electronic lock might last 3
    1. Re:Steve Jobs on video codecs and patents by Jahava · · Score: 1

      Here's my patent reform plan:

      • At the time a patent is submitted, the total research cost invested in creating the patent (specifically) is also registered alongside this patent. This cost must be justifiable and subject to some set of reasonable constraints. Alternatively, the patent submitter can choose to omit a cost, and the cost will default to something like $50,000.
      • The patent, once granted, functions as usual.
      • At any time during the patent's lifetime, money can be paid towards it (by any party, group of parties, or even the government), and if the amount of money meets 110% of the research cost of the patent, the money is given to the submitter and the patent permanently enters the public domain.
      • Otherwise, the patent proceeds as usual...

      The idea here is that there's still a reward for companies to do research (110% of costs reimbursed is guaranteed profit), but any patent critical or important enough to a company or society can be forced into the public domain at will. If, say, a cancer-curing drug is patented, the U.S. Government could pay the fee and the drug becomes available to everyone. If Google wants to buy some patents identified to conflict with VP8, same deal.

      Anyway, wanted to toss this out there. Refine or reject as appropriate :)

    2. Re:Steve Jobs on video codecs and patents by LWATCDR · · Score: 1

      "Second, let's remove all the legalese and obfuscation from the applications. If it's not clear and concise, reject it. If it doesn't narrow down the scope to laser precision, reject it. If it sounds like a lawyer wrote it, rather than an engineer, reject it. The default action should generally be to reject, seeing as patent are supposed to be novel."
      They are clear and concise to a lawyer.
      What it all comes down to is that writing any legal document is a lot like making a wish in DnD.
      To give you an example. Someone wanted a law to protect children. It seemed very reasonable. The law was that it was illegal for a parent to cause physical injury to their child through action and or neglect.

      Seems good until people pointed out that you could go to jail for allowing your child to ride a bike. If they fall down and skin there knee you neglected to protect them. People came up with a long list of things that would be crimes if the law was passes as written.
      Another example was a 7 year old that forgot he had a plastic gun that shot little pellets in his backpack. He never took it out and didn't threaten anyone but he got expelled for a year because he had a weapon at school!
      Just like good software specs legal documents are detailed to make sure what you want to happen happens.

      --
      See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
    3. Re:Steve Jobs on video codecs and patents by Anonymous Coward · · Score: 0

      Your post advocates a

      ( ) technical (x) legislative ( ) market-based ( ) vigilante

      approach to fighting patent trolls. Your idea will not work. Here is why it won't work. (One or more of the following may apply to your particular idea, and it may have other flaws which used to vary from state to state before a bad federal law was passed.)

      etc...

    4. Re:Steve Jobs on video codecs and patents by ChrisMounce · · Score: 1
      Variable-lifetime patents already exist to a certain extent (utility patents vs. design patents). But it would be interesting to extend the idea further.

      As long as we can make arbitrary changes to patent law, I think the most valuable thing you could do is to mandate a periodic investigation into whether or not the current policies encourage innovation. Are algorithm patents slowing down innovation? Shorten their duration by a few years/be stricter about what you accept.

      • Frivolous lawsuits would be severely discouraged. And I mean severely.
      • The patent process now involves wrestling with a live bear. Anyone who successfully survives the experience is awarded the patent.

      I can only imagine the punishment you have in mind for a frivolous lawsuit.

    5. Re:Steve Jobs on video codecs and patents by Jiro · · Score: 1

      That doesn't work even if it's actually a reasonable patent. What if the research cost is $50000, but the research only has a 5% chance of producing something useful and the company had to do twenty such research projects in order to get one patent? Certainly not every anti-cancer research project is going to produce a cure for cancer, after all--a lot of them won't pan out.

    6. Re:Steve Jobs on video codecs and patents by Anonymous Coward · · Score: 1

      "This seems like a reasonable statement, at first, but then I wondered what makes video codecs so special. I mean, why single them out, when almost anything has at least the possibility of infringing on a patent?"

      http://lists.xiph.org/pipermail/theora/2010-April/003769.html

    7. Re:Steve Jobs on video codecs and patents by del_diablo · · Score: 1

      Then signing 50.000$ is lieing, because research is still research.

    8. Re:Steve Jobs on video codecs and patents by del_diablo · · Score: 1

      Ain't that just nitpicking?

    9. Re:Steve Jobs on video codecs and patents by Rysc · · Score: 1

      I like your idea, but 110% is awfully low. Patents really do need to allow for a reasonable profit. Let's set it at 200%, so you double your investment. That is pretty fair.

      Better yet, I'd like to include a clause that lets a third party assert that the patent has paid for itself. At such a time a court would examine the situation in a trial-like fashion and if it found that the patent had generated a gross profit of some reasonable multiple of its registered cost--say ten times as much--then the patent becomes public domain at that time without any further payments.

      That way for really expensive patents lawyering it away would be pretty cheap.

      Of course you'd also have to have a mechanism to prevent people from always writing "10 billion dollars!" as the research cost and using chicanery to make it seem reasonable. There'd have to be a legal framework to challenge the research cost justification.

      --
      I want my Cowboyneal
    10. Re:Steve Jobs on video codecs and patents by dkleinsc · · Score: 1

      First, let's upgrade the patent clerks to "patent engineers", because that's what they should be, with appropriate qualifications and salary.

      Next thing, you're going to be saying that some well-qualified patent examiner might be capable of producing top-notch research in physics or something!

      --
      I am officially gone from /. Long live http://www.soylentnews.com/
    11. Re:Steve Jobs on video codecs and patents by Anonymous Coward · · Score: 0

      By the way, the patent examiners I know are all engineers who studied and interned in the field. They're also very well paid. GS-13 for a job that should be GS-11

      (yes, they didn't practice beyond their internship)

    12. Re:Steve Jobs on video codecs and patents by Anonymous Coward · · Score: 1

      Actually I would propose some additional modifications:

      1) When you apply for a patent, you must assign a value (this can be anything from $1 up)
      2) At any time, any person or group can buy out the patent at 3x your value (modified by an agreed value for inflation since assignment). The new owners can 1) keep the patent active (assigning a new value, at least equal to the old value plus inflation), or 2) cancel the patent
      3) For each year of the patent, the current owner pays 10% of the last declared value (again increased by inflation) as a property tax
      4) The patent owner can cancel the patent at any time without cost (although no taxes are refunded)
      5) The patent dies after 20 years, or if the tax is not paid on time (whichever happens first).

      If you think your "one click" patent is worth $1 Million, you will need to assign a value of at least $333,333, and pay taxes of $33,333 each year (or allow someone else to grab it at $1M from you).

    13. Re:Steve Jobs on video codecs and patents by Rysc · · Score: 1

      Nitpicking is the soul of law(suits). Welcome to life!

      --
      I want my Cowboyneal
    14. Re:Steve Jobs on video codecs and patents by rsborg · · Score: 1

      The patent process now involves wrestling with a live bear. Anyone who successfully survives the experience is awarded the patent.

      Are you a big fan of PLIF?

      --
      Make sure everyone's vote counts: Verified Voting
    15. Re:Steve Jobs on video codecs and patents by WhitetailKitten · · Score: 1

      I can only imagine the punishment you have in mind for a frivolous lawsuit.

      Put into a bear suit and be forced to fight armed patent applicants?

    16. Re:Steve Jobs on video codecs and patents by LWATCDR · · Score: 1

      Yes just like when you make a wish in DnD.

      --
      See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
    17. Re:Steve Jobs on video codecs and patents by natehoy · · Score: 1

      Change (2) to "any person or group can pay the patentholder to release the patent into public domain" and you'll basically be repeating the proposal I made about copyrights a couple of days ago (and did not copyright or patent, so I'm not complaining!).

      Needless to say, with that one little modification, I agree. (grin).

      --
      "This post contains words, known to the State of California to cause thought. Wash brain thoroughly after reading."
    18. Re:Steve Jobs on video codecs and patents by natehoy · · Score: 1

      Anyone who successfully survives the experience is awarded the patent.

      Let's further that...

      "If the bear is the eventual winner, the patent is awarded, in perpetuity, to the public. If the bear is not the eventual winner, we keep swapping out bears until it is."

      --
      "This post contains words, known to the State of California to cause thought. Wash brain thoroughly after reading."
    19. Re:Steve Jobs on video codecs and patents by Elbereth · · Score: 1

      Oh, definitely! I'm glad someone caught the reference.

  21. And that aside by Sycraft-fu · · Score: 2

    Something being international doesn't mean it is outside of the law of a given country. Heck for that matter most large companies are international, they have offices all over the world. That doesn't mean they get to say "You can't pass any laws on us or take us to court! We are International!" Do business in the US, you are subject to US law. Same deal with MS and EU anti-trust rulings.

    However the parent is completely correct. MPEG is the group that designs compression formats and so on. MPEG-LA is a group that grabs licensing fees.

    Basically the MPEG standards created were covered by a whole heapin' helpin' of patents from all kinds of different companies. So these companies got together and decided that they way to deal with this and make money on it was to pool them. You put your patents in a pool controlled by MPEG-LA, who then handles the licensing of the technology. You then get your cut of the money.

    Has nothing at all to do with the development of anything.

    1. Re:And that aside by Kjella · · Score: 1

      Has nothing at all to do with the development of anything.

      That is exceedingly kind, I'm fairly sure the patent holders in various ways try influencing the development to make their patents essential to the format. Formally the MPEG-LA has nothing to do with MPEG, but I'm sure many of the companies have both experts on the MPEG group and license income from MPEG-LA.

      --
      Live today, because you never know what tomorrow brings
  22. Mispelled by Anonymous Coward · · Score: 0

    "the California Stare Attorney General's office is also looking into MPEG-LA for possible restraint of trade practices."
    There, fixed it for ya!

    1. Re:Mispelled by Anonymous Coward · · Score: 0

      And yet you misspelled misspelled, jackass.

    2. Re:Mispelled by Anonymous Coward · · Score: 0

      Successful troll is successful

  23. Re:yea! by KingMotley · · Score: 1, Informative

    Hmm... The two best-known? I think the following companies would like to argue that point:
    Cisco Systems
    Dolby Laboratories Licensing Corporation
    Fujitsu Limited
    Hewlett-Packard Company
    Hitachi, Ltd.
    Koninklijke Philips Electronics N.V.
    LG Electronics Inc.
    Mitsubishi Electric Corporation
    Nippon Telegraph and Telephone Corporation
    Panasonic Corporation
    Robert Bosch GmbH*
    Samsung Electronics Co., Ltd.
    Sharp Corporation
    Siemens AG
    Sony Corporation
    Toshiba Corporation

  24. Re:yea! by king+neckbeard · · Score: 1

    'Intellectual property' can't be stolen, and in this case, Google tried very, very hard to get a decent royalty free codec to the market. If they can't, that's a sure sign that MPEG-LA and it's members are practically working as a cartel. It's also worth noting that this isn't the first time the antitrust action against MPEG-LA has been called for.

    --
    This is my signature. There are many like it, but this one is mine.
  25. Re:yea! by countertrolling · · Score: 2

    It's hard to think of a more clear cut example of supposed business rivals getting together to agree and enforce a common price.

    Price fixing is a time honored practice in many industries. oil, steel, railroads, airlines and communications, all run by pirates who do challenge each other for top position, like in any other herd or flock of animals, but will never work against the whole..

    --
    For justice, we must go to Don Corleone
  26. Re:yea! by Anonymous Coward · · Score: 1

    So patents are monopolies. MPEG-LA is using their/members/potential members patents (monopolies) to inhibit competition.
    What the DOJ is doing is investigating whether the conduct of the MPEG-LA violates anti-trust (or other federal) laws. They haven't been charged with anything (yet). The DoJ can investigate a monopoly or a multi-firm contract, conspiracy, or trust to determine whether they are engaging in conduct that is restraining trade in an unreasonable manner. So if the DoJ determines that MPEG-LA pulling together patents to file against a competitor or spreading potential FUD about the potential presence of non-Google owned patents in an attempt to kill the product is unreasonable, they can then bring a lawsuit against them, where a judge will have to decide the matter. It is not like the DoJ says "you're a bad monopoly" and you automatically have to pay millions in fines, there's a due process to this insanity like it or not.

    >>>Which law prevent a corporation from doing that? Quote it to me.
    The sherman antitrust act allows for action against monopolies conduct themselves in a manner that unreasonably restricts trade/commerce across the states.

  27. Re:yea! by theaveng · · Score: 1

    Out of practice? Hardly.

    The 2004 DOJ didn't have any problem going after the CD Cartel (for price-fixing), and forcing them to refund money to overcharged customers.

    --
    FOX NEWS.com should be BANNED from television and internet. Have the Congress take it over and give us Truespeak.
  28. Re:yea! by drinkypoo · · Score: 1

    Most people have no idea what most of those companies make... Sony is right up there too, but these days they definitely lack the cachet of Apple. Hilarious!

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  29. Re:yea! by DJRumpy · · Score: 1, Interesting

    Except there is no price being discussed. The article sums it up nicely at the end:

    "All video codecs are covered by patents," Mr. Jobs wrote. "Unfortunately, just because something is open-source, it doesn't mean or guarantee that it doesn't infringe on others patents."

    If MPEG-LA believes that VP8 infringes, then they are well within their rights to question it. The OpenSource folks, of which slashdot has a majority, seem to think that all patents are evil. I tend to think both sides have merit, and neither would do well without the other. If Google believes that simply questioning whether or not a patent infringes is anti-competitive, then they have a long road to haul. That said, it does seem like MPEG-LA is dragging this out longer than necessary. Although it's conceivable that they could still be gathering information at this stage, surely they have enough preliminary data at this point to make a legal case (or not).

    I suspect this latest bruhaha is just to put pressure on MPEG-LA to put up or shut up.

  30. Finally! by Compaqt · · Score: 1

    It's about time the Justice Dept. gave value for money.

    --
    I'm not a lawyer, but I play one on the Internet. Blog
  31. Re:yea! by Anonymous Coward · · Score: 1

    If MPEG-LA believes that VP8 infringes, then they are well within their rights to question it.

    Lawsuits cost money. Especially when your opponent has a bottomless pit of it too.
    FUD & idle threats is cheap and effective.

  32. Re:yea! by boorack · · Score: 2

    MPEG-LA does not believe VP8 infringes any of their patents, so they tried building/buying up a patent portfolio specifically to go after VP8. This is clearly anti-competitive and propably illegal. I personally think it is an act of extortion and MPEG-LA executives should be charged under RICO laws. But I'm not a lawyer and US justice system seems to do more to cover corporate executives (knowingly) illegal activities than to ensure justice overall. It 2008 financial crisis fiasco does not show that clearly than I don't know what is.

  33. Re:yea! by tepples · · Score: 1

    Most people have no idea what most of those companies make

    Dolby has something to do with movies: see "Dolby Digital" that used to be shown before movies back when it was new. LG, Panasonic, Philips, Samsung, Sharp, and (as you mentioned) Sony are familiar from the TV aisle at Best Buy or Walmart.

  34. Yes they do. by Anonymous Coward · · Score: 0

    Yes they do. MS get rid of Linux, Apple get rid of Android.

    Or don't you think that having competing products in the field reduces their profits?

    1. Re:Yes they do. by Anonymous Coward · · Score: 0

      It doesn't get rid of Linux. Linux can run H.264.

      You can't be a purist about patents and do H.264 at this time though -- but it's not monopoly abuse. That's Linux intentionally self-selecting out of a competitive advantage. So there's nothing to attack (on this particular subject with this particular rationale) in Microsoft or Apple. MPEG-LA is another story.

    2. Re:Yes they do. by king+neckbeard · · Score: 1

      h.264 patent licensing is incompatible with being legally freely distributed. It gets in the way of the FOSS model, and there's a decent argument that FOSS is the only threat to Microsoft on the desktop. If something is a hurdle to your only real competitor, it can be in your interest for that hurdle to be large, even if it's slightly harmful to your business.

      --
      This is my signature. There are many like it, but this one is mine.
  35. Re:yea! by skids · · Score: 4, Insightful

    Missing the point. This is an anti-trust suit. A trust is when companies that should be competing conspire for monopolistic powers/purposes. If individual patent holders were behaving in a free-market way, they would each challenge individually, giving google the ability to pick and choose which patents to license or give royalties to, should anyone actually have an unexpired patent that pertains. Google would also have to option of altering VP8 to not infringe on any patents held by people who were asking too high a price. Doing so would require knowing the price.

    Instead, we have the formation of a cartel that plans to bundle all patents together so the holders are no longer competing, but form an illegal trust. Granted it is probably a toothless one without any actual infringed patents -- but whether or not they actually have any goods is still unknown, so it doesn't matter -- the legal situation must be treated as if they do in fact have infringing patents, since it is their express purpose to gather them.

    in the meantime they are using the prospect of this bloc of patent holders as a basis to go out and make declarative public statements before actually producing any evidence that they actually have any patents that were infringed. As they have done such, they may be already guilty of anti-trust behavior, because they have utilized the common asset of their bluff.

  36. Re:yea! by lxs · · Score: 1

    I don't know. My Bosch cordless drill is pretty nifty and Siemens makes everything from phones to trains.

  37. Re:yea! by tlhIngan · · Score: 3, Informative

    Missing the point. This is an anti-trust suit. A trust is when companies that should be competing conspire for monopolistic powers/purposes. If individual patent holders were behaving in a free-market way, they would each challenge individually, giving google the ability to pick and choose which patents to license or give royalties to, should anyone actually have an unexpired patent that pertains. Google would also have to option of altering VP8 to not infringe on any patents held by people who were asking too high a price. Doing so would require knowing the price.

    Instead, we have the formation of a cartel that plans to bundle all patents together so the holders are no longer competing, but form an illegal trust. Granted it is probably a toothless one without any actual infringed patents -- but whether or not they actually have any goods is still unknown, so it doesn't matter -- the legal situation must be treated as if they do in fact have infringing patents, since it is their express purpose to gather them.

    in the meantime they are using the prospect of this bloc of patent holders as a basis to go out and make declarative public statements before actually producing any evidence that they actually have any patents that were infringed. As they have done such, they may be already guilty of anti-trust behavior, because they have utilized the common asset of their bluff.

    Actually, companies are free to implement h.264 WITHOUT involving the MPEG-LA. It's just that the company is now responsible for dealing with licensing the 1000+ patents from everyone themselves.

    All the MPEG-LA does is provide a generic license of "Pay us $X per device and you'll be licensed to use all these patents". You are free to go after each and every patent holder separately.

    Of course, there are advantages to going with MPEG-LA than doing it yourself, notably, dealing with 1000+ legal agreements is pretty difficult and time-consuming, and there's no guarantee that you can get it cheaper. Also, if you're dealing with one of your major competitors, they could simply deny you a license, or charge extra for it (MPEG-LA licensing is RAND).

    Of course, I don't know what the MPEG-LA licenses are like, but they could also include clauses that say the license is only valid for h.264, and other codecs using the same things (VP8 is supposed to allow use of the same blocks has h.264) could very well require extra licensing because that block's license terms only cover h.264, not VP8, h.265, SuperCoolCodec, or whatever. This is less about the software decoders, but the hardware accellerators you'll need for VP8 to be used in mobile devices.

    End result could very well be that you're paying for an h.264 license in order to do hardware accellerated VP8 decode.

  38. Re:yea! by Anonymous Coward · · Score: 0

    There's obviously no explicit law against spreading FUD (except perhaps false advertising). However, clearly the DOJ considers this particular act a possible violation of the Sherman Antitrust Act. I'll clarify for you and the rest of the 12 year old assholes on Slashdot who continuously don't get this: LOTS OF THINGS THAT AREN'T NORMALLY ILLEGAL BECOME ILLEGAL IF YOU ARE A MONOPOLY. Monopolies in and of themselves are not illegal. However, when we determine that a company has a monopoly on a particular market, we place a lot of extra rules and restrictions on them to make sure they don't abuse the power that comes with being a monopoly.

  39. Re:yea! by DJRumpy · · Score: 1

    Exactly. That is the entire benefit of a patent pool so they don't have to deal with every legal patent, but rather get a blank package.

  40. Google's "Investment" in Obama pays off... by Anonymous Coward · · Score: 0

    Nice - now Google gets free DoJ investigations.

    Do no evil huh?

    1. Re:Google's "Investment" in Obama pays off... by hkmwbz · · Score: 1

      Google? A lot of companies are being affected by the MPEG-LA's patent trolling. You may know about a company called "Mozilla"? How is it evil to investigate illegal practices anyway?

      --
      Clever signature text goes here.
  41. Re:yea! by omfgnosis · · Score: 1

    And babies. Wait, that's not right.

  42. Re:yea! by Anthony+Mouse · · Score: 3, Informative

    If MPEG-LA believes that VP8 infringes, then they are well within their rights to question it.

    I don't think that's the issue. It isn't that if someone has a patent that reads on VP8 they aren't allowed to enforce it. It's that the people who control the rights to VP8's primary competitor are trying to gain control over rights to VP8.

  43. Absolutely! by kheldan · · Score: 4, Funny
    Yes, we must break up the MPEG group's hegemony! There should be more than just MPEG-LA; I propose they break it up into smaller units, thusly:
    • MPEG-LV: Las Vegas
    • MPEG-NY: New York
    • MPEG-MI: Miami

    ..in addition to MPEG-LA (Los Angeles).

    --
    Are YOU using the TOOL, or is the TOOL using YOU? Think about it!
  44. Re:Google saying something is anticompetitive..... by spire3661 · · Score: 1

    Imagine that, using a company's own search function returns results favorable to that company. Im shocked, SHOCKED i tell you. They may have 90% of the market but its still not a monopoly because there is PLENTY of choice to go around. Bing and Yahoo are completely viable competitors, enough so that calling google an illegal monopoly on search is laughable. Google is in no way bound to rank sites in any certain way. They are completely free to rank sites in any way they wish.

    --
    Good-bye
  45. Re:yea! by Anonymous Coward · · Score: 0

    I really don't think so. Nippon Telegraph and Telephone, and maybe Bosch are unfamiliar. I'm not sure about Bosch. The rest are all household names (maybe not in long form -- I didn't know about "Koninklijke", but I sure knew Philips and it was the same Philips). I couldn't tell you all the things they sell, but then, I couldn't tell you all the things Microsoft sells either.

    You can answer "TVs" for most of those and people recognize TV brands, if for no other reason, because they look at TVs all the time, and they all have a brand label.

  46. Re:Google saying something is anticompetitive..... by stewski · · Score: 1

    The statements are fascinating and potentially point out a serious issue. What I'm not sure about is what this has to do with common property such as the royalty free VP8 codec.

  47. Sounds like a step in the right direction by cyberidian · · Score: 2

    I am glad the DOJ and CA Attorney General are launching this anti-trust investigation, and I hope MPEG LA is prevented from any further action against the VP8 codec. Without open competition, capitalism does not work. No group should have the right to block alternative technology formats whether they are free & open source or not. We must be vigilant about this as citizens because otherwise monopolies will destroy our democracy and the ability of new companies to compete and innovate. After reading this article, I am going to look into the VP8 codec and see about using it.

  48. Re:Google saying something is anticompetitive..... by Mister+Whirly · · Score: 1

    Yes becasue no other search engines exist and people are forced to use Google for any online searching.

    --
    "But this one goes to 11!"
  49. Re:yea! by theaveng · · Score: 1

    >>>The sherman...monopolies...unreasonably restricts trade

    That's NOT the question I asked. The question I asked was: Which law prevents a corporation from "spreading FUD about patent infringement"? Quote it to me. Please and thank you.

    --
    FOX NEWS.com should be BANNED from television and internet. Have the Congress take it over and give us Truespeak.
  50. You left out profit motive by swb · · Score: 1

    I'm not fan of the current patent system, but they're not just about protecting the money spent developing the patented concept but the profit that can be obtained from exclusive access to it.

    The money invested in developing a patentable idea is just that, for the most part -- a business investment. People with money to invest are looking for some kind of return on their investment -- not just the money they invested, but MORE than they invested, an interest percentage.

    I like your idea, but you would have to raise the cost of buying out the patent to some multiple of the invested amount.

    I think another idea that would help a lot would be a "mandatory sunset without marketed implementation" requirement that would set a time limit (5 years? 2 years?) within which the patent would have to be brought to market as part of a product or the patent would become public domain.

    This would bring a pretty quick end to most patent trolls, since they typically wielding patents that were never turned into products, and the system is supposed to be protecting industrial innovation, not creating licensing monopolies. Even big "patent portfolio" companies with active products would feel some heat -- ie, Company A patenting some concept they don't use only to hinder Company B's product development or simply hoarding patents to hinder competitors generally.

  51. Re:yea! by theaveng · · Score: 1

    Here let me save some time: "Which law prevents a corporation from 'spreading FUD about patent infringement'?"

    NONE. Commercial speech is protected by the first amendment. Companies can not lie, but they can certainly spread fear, uncertainty, and doubt about competitor's products. (Almost every car commercial does it several times per hour.)

    --
    FOX NEWS.com should be BANNED from television and internet. Have the Congress take it over and give us Truespeak.
  52. Important Standards need IP Certainty by TheSync · · Score: 2

    [this is my personal viewpoint]

    I'm all for people making money on their intellectual property (IP). And every modern standards development organization (SDO) requires the disclosure of IP by standards setting participants.

    But it is the IP held by non-participants unknowingly infringed upon by standards that are the big cause of FUD on the adoption of new standards.

    ANSI is the the official U.S. representative to ISO/IEC and accreditor of US SDOs . Not all US standards become ANSI "National Standards", but many important ones do.

    I believe that upon ANSI elevating a standard from one of its accredited SDOs to a National Standard, there should be a legally defined process that begins a time period wherein all IP owners must "put up or shut up" regarding the standard, i.e. they must declare whether their IP is potentially infringed by a National Standard.

    After that time window is over, patent or other IP infringement cases can not be brought for the use of that IP in applications of that National Standard.

    I'd be happy for that window to be 1 year or 2 years to ensure that IP holders have enough time to be able to monitor publication of National Standards and properly analyze them, but no more than that.

    I'm not a WIPO or international law expert, but it might be nice to extend this to at least a certain class of ISO/IEC standards as well (but perhaps only the important ones).

    1. Re:Important Standards need IP Certainty by TheSync · · Score: 1

      By the way, in case I wasn't clear, I meant a 1-2 year time window for IP holders to "declare" their IP is in a standard. Standard users would still have to negotiate for licenses of declared IP, but at least they would know who to negotiate with, as opposed to the current situation where no one really knows what IP might be infringed upon by a standard.

  53. Re:Google saying something is anticompetitive..... by Anonymous Coward · · Score: 0

    Actually, the Google 'top' results are formed using a separate query, and are placed within a separate div, meaning it doesn't affect the ranking of the other results -- because pagerank is simply not involved.

  54. Re:yea! by theArtificial · · Score: 1

    But I'm not a lawyer and US justice system seems to do more to cover corporate executives (knowingly) illegal activities than to ensure justice overall. It 2008 financial crisis fiasco does not show that clearly than I don't know what is.

    To nit pick, we don't have a justice system. We have a legal system. An analogy might be like learning the subtle difference between amoral and immoral. I agree with you fully.

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  55. Re:yea! by PCM2 · · Score: 1

    The OpenSource folks, of which slashdot has a majority, seem to think that all patents are evil.

    I think you're misstating the issue. Some /.ers may think all patents are evil. A great many more /.ers think that a patent regime that allows software patents is misguided, because such patents are easily abused. The fact that many large software vendors own patents purely for defensive purposes only proves that, as of 2011, it takes a lot of money even to enter the software industry, let alone to thrive.

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  56. Glad by DaMattster · · Score: 1

    I think it is high time the government stepped in to challenge what amounts to a video format cartel.

  57. MPEG-LA are true criminals by emanem · · Score: 1

    These people, the ones who put patents on maths, algorithms, are part of people who should be processed for crimes against humanity.
    You shouldn't be allowed to patent the way we think.

    Cheers,

    1. Re:MPEG-LA are true criminals by Anonymous Coward · · Score: 0

      MPEG-LA doesn't own the patents, they just broker them.

  58. Re:yea! by Anonymous Coward · · Score: 0
    nice try retard but the fact is: you can still go directly to the patent owners and license individual patents. The MPEG-LA makes it easier (and cheaper) than going to every company with an h264 patent and negotiating individual patent licenses. But if you want to do that, go ahead.

    Right now, I'm consulting for an audio-related company that licensed a couple of the patents in the MPEG-LA pool straight from the patent owners, as they needed different terms and didn't care about any of the others, so go blow it out your ass.

  59. Re:Google saying something is anticompetitive..... by hkmwbz · · Score: 1

    Google is a monopoly according to the legal definition (has at least 50% of the market), but being a monopoly is not necessary illegal nor immoral.

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  60. Re:yea! by hkmwbz · · Score: 1

    They pick a major industry cartel which engages in mafia-like behavior. Why is this "facepalm"?

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  61. Re:yea! by hkmwbz · · Score: 1

    You Google haters crack me up. You think this is about Google? No, it's about VP8 as a format, which reaches far beyond Google. It affects an entire industry. Stop obsessing over Google already.

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  62. Re:yea! by hkmwbz · · Score: 1

    Quit it with the red herrings. This is not about open-source. This is about an industry cartel trying to hold back and gain control over its main competitor through threats and manipulation.

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  63. Engineer / Lawyers by Ungrounded+Lightning · · Score: 1

    First, let's upgrade the patent clerks to "patent engineers", because that's what they should be, with appropriate qualifications and salary.

    Don't know about patent clerks. But I understand that patent lawyers are already required to also be engineers. Have been for some time.

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  64. Re:yea! by Knightman · · Score: 1

    Companies usually doesn't mention competing products in a denigrating way for a reason and it's called lawsuit.

    So, please provide a link to a car commercial doing this or stop posting please.

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  65. Re:yea! by KingMotley · · Score: 1

    Nippon is Japan's AT&T.

  66. Re:yea! by jrumney · · Score: 1

    And Robert Bosch from the powertools aisle. Why I would want H.264 playback on my electric drill, I do not know.

  67. Flawed logic to justify SW patents: FAIL by lpq · · Score: 1

    If patents weren't around, On2 wouldn't have been able to get licensing fees. Thus they wouldn't have been able to make money, and they wouldn't have gotten funding to pay their programmers.

    Since there is absolutely no way you could possibly verify this let alone 'know' this (unless you created an alternate reality where patents didn't exist and that only difference caused this one company to fail), your entire argument is predicated on something that is untestable.

    But, it's a good thing we have patents, or we never would have inventions like the 'wheel'...right?

    1. Re:Flawed logic to justify SW patents: FAIL by phantomfive · · Score: 1

      What exactly was my argument? Read it again and see if you can figure out what my main point was.

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    2. Re:Flawed logic to justify SW patents: FAIL by lpq · · Score: 1

      You were saying there were 'shades of grey', and how even though you were against SWPatents, in general, that in some specific instance, it allowed developed of a subsequent product further down the line.

      My take was that using the supposition that SWP enabled the further development was predicated on 1) the untestable presumption that SWP's were required for the development and payouts on the first product and 2) that the 2nd product wouldn't have been developed independently by the original developers in the original company (or a spin-off) or by another company regardless of any income on produce #1.

      I.e. -- you were supporting (it seemed) that the SWP's had some marginal usefulness in that niche, while I was saying that even in that niche the evidence of their usefulness was weak.

      Eh? ;-)

    3. Re:Flawed logic to justify SW patents: FAIL by phantomfive · · Score: 1

      There is no doubt that profit motivates many inventors, including some in that particular niche. Patents are a legal framework which enable people to profit from their inventions (and really, I see no reason people shouldn't be able to profit from their inventions in general).

      It's possible this company could have made a profit without using software patents. Hard to know. William Rosen makes an argument that patents do drive invention and innovation. I don't have the breadth of knowledge to know if he is right or not, but it sounds reasonable. Certainly he collected a lot of data about the topic.

      Indeed, as you mentioned, it is hard to know what would have happened without patents. In fact we don't really know. Hence there are shades of grey, and it is important to understand various sides.

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    4. Re:Flawed logic to justify SW patents: FAIL by lpq · · Score: 1

      There's a very interesting paper that documents that extrinsic rewards (like profits) actually hinder the creative process in some areas. The paper documents the origins of the copyright/patent system as being a replacement for an earlier system where 'patents' were given as 'rewards' by monarchy, based on 'favoritism' rather than on anything to do with creativity -- somewhat akin to the modern day 'knighthood's being granted as a reward by monarchy to some individuals who 'please the monarchy' (in these days, more often for contributions that benefit the society or country of the monarch).

      The idea that they were needed as a reward for creativity became a later justification for continuation of copyright/patents under anglo-saxon law.

      But the paper cites references that show that in reality, copyrights and patents often have the opposite effect -- they do not inspire further creativity and actually hinder the process!

      Very interesting read: Intellectual Property's Great Fallacy.

    5. Re:Flawed logic to justify SW patents: FAIL by phantomfive · · Score: 1

      You aren't by any chance the one who wrote that paper, are you? :)

      The paper affirms that in some industries, patents are very important in protecting profit, while in others, it doesn't. This is not surprising. I wouldn't disagree that most software patents I've read are obvious (though sometimes profitable for their authors). These are certainly going to stifle innovation. But even in the computer industry, some companies, like Qualcomm, are motivated by patents and profits. Maybe their technologies would have been invented anyway without patents, but that is unknowable.

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      "First they came for the slanderers and i said nothing."
    6. Re:Flawed logic to justify SW patents: FAIL by lpq · · Score: 1

      You aren't by any chance the one who wrote that paper, are you? :)

      That'd be cool, but not quite so clear in my writing...

      As for qualcomm -- while it does make real products, it has quite a few patents that it hasn't used itself or allowed to be licensed. It's these 'dormant' patents that are a problem. Qualcomm's practices haven't left others wondering if they are starting to move more towards being a patent troll.

      I've no prob with inventors getting paid for their inventions, but if they create 'patents' that are just "archived", and held until someone else independently comes up with a similar idea, then brought to light as a means to make money off of someone else who DID productize the patent -- that's moving into areas of 'theft' of effort -- especially when the patents in question describe 'obvious' and 'next-step' developments in a field.

    7. Re:Flawed logic to justify SW patents: FAIL by phantomfive · · Score: 1

      Indeed. I will not argue that patents are all good or do not cause harm. Only that the issue is not so black and white.

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      "First they came for the slanderers and i said nothing."
  68. Re:yea! by SnowZero · · Score: 1

    You didn't reply to skids' point at all. Nobody is claiming that h264, its patent pool, or its licensing method is a problem here. What they are complaining about is that MPEG-LA basically said "Hey everybody, our current pool is insufficient, so send us other possible VP8-related patents and we'll all collude to take down this new competitor." They also announced this in a very public way to generate a FUD effect.

    There's a difference between operating as a patent pool to enable interoperability and simplify licencing, and acting as a patent-wielding cartel to stifle competition. Regulators are fine with agreements that promote active competition in a space, but they're not so happy when agreements try to prevent competition. This is why many standards bodies with patents explicitly set out RAND licencing practices -- with unequal license terms you'd try to maximize what you extract from weak members or licensees. But that can quickly be seen as harmful collusion if used against any potential competitor, and that could get you in hot water with anti-trust regulations. As far as what's going on here, regulators will investigate and decide if they want to pursue action.

    Your post seems to have little to do with this immediate discussion. Maybe you don't read TFA, but at least read TFS: "...anti-trust investigation of MPEG-LA's purported efforts to prevent Google's VP8 codec from widespread adoption.". There's nothing about h.264 licensing there, yet that's your focus of your rebuttal. The only thing that matters at all regarding their existing codecs is that it makes them a competitor of those who are pushing VP8. Few would dispute that the two camps are competitors.

  69. Re:yea! by Anonymous Coward · · Score: 0

    What part of TFS or TFA says anything about existing licencing or the currently pooled patents? Nothing. This is about purposely making a new pool to form a coordinated attack (rather than to cross-licence or interoperate). GP gets this, but it appears you do not.

    The original purpose of MPEG-LA is a lot like the Detroit automakers getting together to cross licence patents for advanced engine development, which they'll also licence to anyone (for the same price). That's fine. The new situation is like that same association of automakers publicly calling for all patents that could be used to bury Tesla Motors, which they will collude to use. Your post is simply restating the original purpose is fine. Sure, it is, but that's not the point. This new thing they're doing doesn't have the same stated goals or intended effect, so all of the sudden the companies in the pool are seen through a different lens w.r.t anti-trust regulation.

    Of course, this is just an investigation. Maybe it'll all be roses and daises.

  70. Re:yea! by SnowZero · · Score: 1

    We don't live in a system where everything must be a law:
        http://en.wikipedia.org/wiki/Common_law
    For something like this, you're almost certainly looking for case law and legal precedent.

    Sorry, I cannot quote such a source for you, as IANAL.

  71. Re:yea! by drinkypoo · · Score: 1

    You can answer "TVs" for most of those and people recognize TV brands, if for no other reason, because they look at TVs all the time, and they all have a brand label.

    NONE of those brands just make TVs. There are a jillion manufacturers of televisions so just another TV manufacturer is nobody. If you think of Sharp (or worse yet, Mitsubishi) as a company that makes TVs, then you DON'T know what they do.

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