I mailed directly MPEG LA about the last MPEG-4 issues.
My email:
Hi, my name is Marco and i write from Italy.
I'm really confused about MPEG patents, so please ask thoose few
questions:
1. Is it legal to use GPL'd software (XviD) to make MPEG streams ?
2. Can i put the result on my website for free ?
3. Did you hear about XviD vs. Sigma Designs issue ? Who's right ?
Thanks in advice
Marco
Note: your response will be published on www.hydrogenaudio.org to
inform the communities... try to be more clear (and simple) as you can !
theyr reply:
Hello, Marco.
Thank you for your email. I am glad to answer your questions as best I can:
1. Any product with MPEG-4 Visual functionality uses patents that are essential to the MPEG-4 Visual Standard and is required to be licensed under them by the payment of applicable royalties. Therefore, if XviD incorporates MPEG-4, then it needs to be licensed under these patents and the applicable royalties need to be paid.
2. In September we will be offering a license that includes patents which are essential to use of the MPEG-4 Visual Standard. Under that license, the royalty for a right to make and sell decoders ($0.25 per unit subject to an annual cap of $1,000,000 per legal entity and encoders ($0.25 per unit subject to an annual cap of $1,000,000 per legal entity) will be paid by the manufacturers of the functioning/end decoder or encoder product. In addition, where a video provider receives remuneration for offering or providing the video via the internet, a royalty for the use of the decoders and encoders also will be payable by the Video Provider. But, a Video Provider does not mean an entity that transmits MPEG-4 Video which contains only advertising or promotion for its own products/company and where no revenue other than from the sale of its own products is received. Therefore, if that is what you have in mind, then the additional use-based royalties would not apply in the case where the result is posted on your website for free. If you receive revenue from advertising, however, the result would be different.
3. I am not familiar with this issue and therefore, cannot comment on it.
You are welcome. I will be glad to answer any additional questions you may have. Our license will issue in September and will provide the best information, but the attached press release summarizing the license terms issued on July 15 and will provide a helpful summary of what you can expect.
Best regards,
Larry Horn
Vice President, Licensing