QUOTE(benski @ Dec 3 2007, 22:51)

I'm not entirely sure about this, but I believe that there are Layer 2 hardware patents that are more enforced/enforceable than the software patents.
Rather no. The licensed Fraunhofer hardware decoder contains both the MP2 as well as MP3 decoding engine. Always. One gets all MP3 players to work with MP2 files if one renames them from MP2 to MP3. The hardware chip inside an MP3-player then detects MP2 instead of MP3 and the MP2-decoder part of the chip decodes the audio.
There is only one exception: in a situation where price is almost the only argument for fabricating and/or selling an MP3-player the 2-3 cents for the extra silicon required for the MP2-decoder part surely plays a role and they will remove it from the player.
As you all (might) know, iPods are very expensive to buy for the consumer (mostly because of the design hype) but their fabrication costs in China are extraordinary low because they squeezed anything out of it that might cost a few cents or more. They essentially cripple the iPod ... I myself consider an iPod a crippled, low quality device that simply sells because of the design hype and naming and I will never ever buy one in my lifetime...